We are revisiting Construction loan disclosures and need to verify a couple of things if possible. For an interest only payment construction loan:

1. Can you use the full loan amount to project Monthly principal and Interest on the LE/CD or must we only use 1/2 if the borrower does not take the draw for the whole amount initially

2. Should the answer to Can this amount increase after closing in the Monthly P&I be NO for a fixed-rate, interest only construction loan?

3. Is the Adjustable Payment Table required if it is a fixed rate, interest only? (we were under the impression it was not)

If they are not taking the full amount at the time of closing, then how by disclosing on the full amount is that in good faith based on the legal obligation of the parties? While you do not have to use Appendix D, you still have to use some method to accurately provide the estimated finance charges that will accrue. While disclosing on the full loan amount might result in a higher finance charge, it is also going to result in an understated APR. Why would you not use Appendix D? Using or doing anything else is going to create an unknown amount of pain with auditors and examiners and I would not do it without involvement from legal counsel.