We have a loan closing through a state program (in this case it is NIFA-Nebraska Investment Finance Authority). The 1st loan is a Rural Housing Loan, the 2nd lien is a NIFA/HBA (Home Buyers Assistance) for a low-interest down payment loan. The borrower also has a Community 2nd Program Grant through NIFA. NIFA wants us as the lender to add $1,022.00 in charges for the grant to our Closing Disclosure. Here are our questions we would greatly appreciate any help with:

1) Can we add the charges for the grant program to our CD, OR does NIFA need to produce a separate CD for this program?

2) Since we knew there would be a grant when the Loan Estimate was completed, would these charges now be a tolerance cure OR since we were not aware with the “best information available” that there would be a separate charge for the grant administration & 1st time home buyer, these can be added without a cure?

We really appreciate any help that can be offered. Thank you!

1) If it is a grant and not a loan, I am not sure why it would need an LE/CD.

2) Well, this is a little trickier if you knew about it upfront.

Official Interpretation

19(e)(3)(iii) Variations permitted for certain charges.

3. Good faith requirement for property taxes or non-required services chosen by the consumer. Differences between the amounts of estimated charges for property taxes or services not required by the creditor disclosed under § 1026.19(e)(1)(i) and the amounts of such charges paid by or imposed on the consumer do not constitute a lack of good faith, so long as the original estimated charge, or lack of an estimated charge for a particular service, was based on the best information reasonably available to the creditor at the time the disclosure was provided. For example, if the consumer informs the creditor that the consumer will obtain a type of inspection not required by the creditor, the creditor must include the charge for that item in the disclosures provided under § 1026.19(e)(1)(i), but the actual amount of the inspection fee need not be compared to the original estimate for the inspection fee to perform the good faith analysis required by § 1026.19(e)(3)(iii). The original estimated charge, or lack of an estimated charge for a particular service, complies with § 1026.19(e)(3)(iii) if it is made based on the best information reasonably available to the creditor at the time that the estimate was provided. But, for example, if the subject property is located in a jurisdiction where consumers are customarily represented at closing by their own attorney, even though it is not a requirement, and the creditor fails to include a fee for the consumer's attorney, or includes an unreasonably low estimate for such fee, on the original estimates provided under § 1026.19(e)(1)(i), then the creditor's failure to disclose, or unreasonably low estimation, does not comply with § 1026.19(e)(3)(iii). Similarly, the amount disclosed for property taxes must be based on the best information reasonably available to the creditor at the time the disclosure was provided. For example, if the creditor fails to include a charge for property taxes, or includes an unreasonably low estimate for that charge, on the original estimates provided under § 1026.19(e)(1)(i), then the creditor's failure to disclose, or unreasonably low estimation, does not comply with § 1026.19(e)(3)(iii) and the charge for property tax would be subject to the good faith determination under § 1026.19(e)(3)(i).