How should the fees be listed on the HUD statement when the bank is paying a portion of the fees and the customer is paying the remaining portion? Example: The bank is paying for half of the appraisal and the customer the remainder, etc.

Thanks

The portion the bank pays will be shown as POC.

In this case if the appraisal costs $300 we should show $150 in the totals column and $150 as poc to the left.

Correct.

if we are thinking of giving a credit (for example $600.00 off closing costs) to a company next door to us, what should I be considering in regard to compliance issues and how do we disclose this on the gfe and the HUD?
thank for any help, it will be much appreciated

What do you mean to the "company next door" and why are you doing it would be my first question.

If the answers to the first question are satidfactory, then the credit can be placed in lines 204-209 and be treated similar to an allowance.

a business/company next door to the the FI, I guess LO is thinking it's a way to generate business to a captured audience?
would we need to disclose as a credit on the gfe?
on the HUD - just show the credit (like you said, like an allowance)
sorry if these are simplistic questions, need to clarify for the LO
Thanks, rl, I appreciate your input

Well, technically, since this entry Will not be eventually disclosed in Section L of the HUD-1, it does not have to be disclosed. But I would think that you would want it reflected in some way on the GFE as it will affect the amount necessary for closing the loan.

I asked the first question to ensure that the business next door wasn't a Realtor or a construction business - then you have RESPA section 8 issues to consider.

can we disclose on the gfe, as a credit amount, for example if the amount is always $600.00 off closing costs.
or do we need to apply the amount to specific items that we will be paying in regard to the closing cost credit (appraisal/credit report/flood fees etc) and mark those as POC?
Thanks again

You could do it either way.

thanks so much for answering all my questions, I really appreciate your time

patsfan, depending on how your LOS works and whether or not you sell your loans on the secondary market, you might want to condsider breaking out this credit into the various fees that it covers and mark then as Lender Paid. That is the only way we are able to exclude lender paid costs from the APR calculation and not have a sold loan "kick back" to us from the investor for "under-disclosed" APR because they could not see the actual lender paid costs.

renniks, thanks for that input.
I guess I thought I understood but now I am confused again. If we use the credit and list on first page of HUD, we would list all the fees as if they are being paid at closing.
If we designate the specific lender paid fees and mark as (POC) do we still show the credit amount on the first page?
AM I overthinking this?
I think I need to take a lending course.
Thanks

patsfan: If you give the lump sum credit on the first page, the fees are charged to the borrower. If you itemize the fees being paid by the lender, those fees would be listed as poc, and there is no credit listed on the first page.

okay, thanks for understanding what I was saying.
I guess it's just a decision for the us to make.

Thanks for everyone's input. I appreciate it more than you will know.