If the buyer is paying owners title do we show the adjustment figure as a positive instead of a negative?

For example,

Full Lenders 300
Full owners 600
Simultaneous 100

So list $300 in Block B or C
$400 (600+100-300) in block H seller paid column

$200 Block L to borrower
$200 Block N to Seller


Do you have to do the adjustment formula for simultaneous if the buyer is paying both?

If the buyer is paying both - they end up paying $700 in total. $300 LTP in Section B or C and $400 OTP in H in the buyer's column. What adjustment would there be?

What ^^^ he said. Why do you have anything in sections L and N?

As to your question, yes, you must show the LTI and OTI as prescribed by the regulation, if OTI is shown and there is a simultaneous issue discount for the LTI.

I am so confused....

When do you have to use the formula? Only when the seller is actually paying the OTI and there is a discounted rate?

What formula are you referring too? If you are in a simultaneous issue discount State, you always have to use that formula regardless of who is paying for the policies.

The Full Owners + Simultaneous Insurance Premium - Full Premium for Lender's Coverage

Which is what we thought went in Block H.

We thought that an adjustment for title insurance was shown in Block L and N for the difference between the calculated amount and Full Owners.

Only if the seller is paying for the OTP, then there would be an extra credit from the seller for the remainder of the OTP. They paid the $700 in your example - there is nothing to adjust.

An audit resource told us to disclose. This does not jive with anything I have seen. Can anyone confirm if these are acceptable methods?


Loan Estimate (LE)
Lenders full insurance amount would be on Block C on the LE
The calculated amount would be in Block H 241.76 (Optional)


Closing Disclosure (CD)
Lenders full insurance amount would be on Block L on the CD
Difference in Block N 241.76 (Optional)

No - LTP has to go in closing costs. Find a new resource.