Projected Payment - Rounding

Posted By: MAFCCons

Projected Payment - Rounding - 10/29/15 06:04 PM

Hello, I have a lot purchase transaction subject to TRID. My LOS is not rounding the (LE-1st page) Estimated Total Monthly Payment amount. When I questioned it, the reason they gave is that since the P&I payment is not required to be rounded and there are no other amounts in the calculation (escrows or PMI), then the total amount doesn't have to be rounded either. For the life of me, I can't find where that field is specifically discussed in the 1026.37 and all the sample Appendix H forms have at least escrows shown. Any help is appreciated. Thanks!
Posted By: Diane Dean

Re: Projected Payment - Rounding - 10/29/15 06:37 PM

Section 1026.37(o)(4)(i)(C) states that you round the total payment only if any of its components are to be rounded. If you go back to §1026.37(o)(4)(i)(A), it requires the amounts in §1026.37(c)(2)(ii), which is mortgage insurance, and §1026.37(c)(2)(iii), which is the escrow amount, to be rounded. It doesn't require the principal and interest payment in §1026.37(c)(2)(i) to be rounded. So, if you're only showing principal and interest, I agree it's not rounded. Hope that makes sense!
Posted By: MAFCCons

Re: Projected Payment - Rounding - 10/29/15 07:30 PM

That's what I found too but there has been a lot of emphasis on rounding so I thought that there had to be something else I was missing. Thanks!
Posted By: peony

Re: Projected Payment - Rounding - 11/15/16 04:04 PM

Bringing this back up - May be the dumb question of the day!

Under Projected Payment section:

Principal + Interest is 612.50
Estimated Escrow is 182
Estimated Total Monthly Payment is 794

Is the total monthly payment correct? I'm thinking it should be 795.
Posted By: rlcarey

Re: Projected Payment - Rounding - 11/15/16 04:34 PM

37(o)(4)(i) Nearest dollar.

Paragraph 37(o)(4)(i)(A).

1. Rounding of dollar amounts. Section 1026.37(o)(4)(i)(A) requires that certain dollar amounts be rounded to the nearest whole dollar. For example, pursuant to § 1026.37(o)(4)(i)(A), periodic mortgage insurance payments of $164.50 are required to be disclosed under § 1026.37(c)(2)(ii) as $165. However, if the periodic mortgage insurance payment equaled $164.49, the creditor would disclose $164.
Posted By: peony

Re: Projected Payment - Rounding - 11/15/16 04:39 PM