Please help! This is not making sense to me. Looking at the Calculating Cash to Close table on the LE for a refinance.

According to 37(h)(1)(viii): “The sum of the amounts disclosed pursuant to § 1026.37(h)(1)(i) through (vii) is disclosed under § 1026.37(h)(1)(viii) as either a positive number, a negative number, or zero. A positive number indicates the amount that the consumer will pay at consummation. A negative number indicates the amount that the consumer will receive at consummation. A result of zero indicates that the consumer will neither pay nor receive any amount at consummation.”

So…. In our scenario we have a loan amount $79,000; total closing costs of -$4,900; and estimated total payoffs and payments of -$79,200. The result is -$5,100. According to the above statement, the negative number indicates that the consumer will receive this money at consummation. This doesn’t make sense. We’re only loaning $79,000 so it seems to me that the consumer should be bringing $5,100 needed for closing costs (not financing the closing costs BTW) and to finish paying off the existing debt.

What am I missing or not understanding??

I think you would use the alternate Loan Estimate and then follow the guidance in 37(h)(2)i through 37(h)(2)v. This would show the "Estimated Cash to Close From Borrower as $5,100 (or should anyway).

Thank you for your response! BUT we are using the alternate table and following 37(h)(2) instructions.

Loan amount $79,000
Total Closing Costs (J) -$4,900
Estimated Total Payoffs and Payments -$79,200

Unless my math skills are failing, the result is a negative $5,100.

Maybe I should quit before Saturday.

I was confused by your reference to 37(h)(1). If you are using the alternative Loan Estimate, nothing in (h)(1) applies and you strictly go by (h)(2); therefore, the negative number reference in 37(h)(1)(viii) doesn't have any bearing to your example. The "from" box should be checked along with the funds the borrower will need to bring to closing.

If I am misunderstanding something I apologize! (BTW...I'm with you on your Saturday comment lol)

Goodness! Good catch on my reference to (h)(1) in my original post. This is going to be a long month. Thank you so much for your patience and your help!

I’m actually looking at the following from the official interpretations to 1026.37:

OPTIONAL ALTERNATIVE CALCULATING CASH TO CLOSE TABLE FOR TRANSACTIONS
WITHOUT A SELLER.
For transactions that do not involve a seller, instead of the table described in paragraph (h)(1)
above, the creditor may alternatively provide, in a separate table, under the master heading
“Closing Cost Details,” under the heading “Calculating Cash to Close,” the total amount of cash or other funds that must be provided by the consumer at consummation with an itemization of that amount into the following component amounts:

i. Loan amount.
The amount disclosed under paragraph (b)(1) of this section, labeled “Loan Amount”;

ii. Total closing costs.
The amount disclosed under paragraph (g)(6) of this section, disclosed as a negative number,
labeled “Total Closing Costs”;

iii. Payoffs and payments.
The total amount of payoffs and payments to be made to third parties not otherwise disclosed
pursuant to paragraphs (f) and (g) of this section, disclosed as a negative number, labeled
“Total Payoffs and Payments”;

iv. Cash to or from consumer.
The amount of cash or other funds due from or to the consumer and a statement of whether
the disclosed estimated amount is due from or to the consumer, calculated by the sum of the
amounts disclosed under paragraphs (h)(2)(i) through (iii) of this section, labeled “Cash to
Close”; ….

I guess I was considering the result of the calculation under iv. above to coincide with 37(h)(1)(viii) so if the resulting sum is negative (like in my scenario) then that would indicate the consumer is receiving that amount.

Do I just need to quit thinking and go home?

Go home and sleep on it. The negative number in step iv. indicates you will check the "FROM" box. Take a look at http://files.consumerfinance.gov/f/201403_cfpb_loan-estimate_refinance-sample-H24D.pdf where the math gives a positive number and the "TO" box is checked.

And check out this closing disclosure http://files.consumerfinance.gov/f/201403_cfpb_closing-disclosure_cover-H25G.pdf where the LE had shown cash TO the borrower and the CloD (due to changes in the payoffs) shows a negative math result and the "FROM" box checked.