Skip to content
BOL Conferences
Thread Options
#2200817 - 12/14/18 08:37 PM Disclosing payoff of debt on purchase CD
Red Raiders Offline
Diamond Poster
Red Raiders
Joined: May 2013
Posts: 1,069
Compliance Land
Where would this credit card payoff go on a Loan Estimate for a purchase loan if it was required by underwriting? Nowhere and just listed on the CD or would it go on the LE?
_________________________
How long until retirement?? smile

Return to Top
TRID - TILA/RESPA Integrated Disclosures Rule
#2200831 - 12/14/18 09:47 PM Re: Disclosing payoff of debt on purchase CD Vive Accommodare
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
If you know about it when the LE is issued, it belongs on the LE. It's included in the Adjustments and Other Credits figure in the Calculating Cash to Close table. When you get to the CD, it will appear in the open as a discrete amount in the Adjustments portion of section K, page 3.

If using the forms for a no-seller transaction, it will go on the LE in the Estimated Total Payoffs and Payments line in the CCC table, and on the CD it will appear as a discrete amount in the Payoffs and Payments list, the net total of which appears on the Total Payoffs and Payments (K) as a negative number in the CCC table.
Last edited by John Burnett; 12/17/18 02:53 PM.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#2271329 - 06/07/22 08:49 PM Re: Disclosing payoff of debt on purchase CD Red Raiders
burke116 Offline
Platinum Poster
Joined: Jun 2014
Posts: 562
Petersburg, VA
Similar situation that I'm struggling with-

Loan proceeds were to 1.) purchase land ($98,000), and 2.) refinance an existing land loan ($67,500) into this one note ($140,000).

Sale price of property: $98,000
Closing costs paid at closing: $3,500
Adjustments: Payoff existing note: $67,500
Due from borrower at closing: $169,000
Loan amount: $140,000
Cash to Close From Borrower: $29,000

Below is how we disclosed the Calculating Cash to Close.

Total Closing Costs: $4,000
Closing Costs Paid Before Closing: -$500
Closing Costs Financed: $0
Down Payment/Funds from Borrower: $0
Deposit: $0
Funds for Borrower: -$42,000
Seller Credits: $0
Adjustments and Other Credits: $67,500
Cash to Close: $29,000

Were we correct in disclosing sales price minus loan amount (funds for borrower- $42,000) to offset the adjustment/payoff? How should this have been disclosed? Thanks for the help.

Return to Top
#2271331 - 06/07/22 09:37 PM Re: Disclosing payoff of debt on purchase CD Red Raiders
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Looks fine to me.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2271333 - 06/08/22 11:11 AM Re: Disclosing payoff of debt on purchase CD Red Raiders
burke116 Offline
Platinum Poster
Joined: Jun 2014
Posts: 562
Petersburg, VA
Thanks Randy

Return to Top