CD for Transactions Without a Seller/Construction

Posted By: Banker 1025

CD for Transactions Without a Seller/Construction - 03/07/16 03:05 PM

We do single closing construction perm loans. Can we use the CD for transactions without a seller and use the payments and payoffs section to list the construction escrow account(s) established to pay the construction draws?
Posted By: John Burnett

Re: CD for Transactions Without a Seller/Construction - 03/07/16 03:29 PM

Yes, you can do it that way.
Posted By: Banker 1025

Re: CD for Transactions Without a Seller/Construction - 03/07/16 03:37 PM

Thank you. We thought that we could but just wanted to get another opinion.
Posted By: lucyc

Re: CD for Transactions Without a Seller/Construction - 07/20/16 06:52 PM

Can we disclose a construction escrow holdback in the Payoffs and Adjustments section on the Loan Estimate and then in Section H. Other on the Closing Disclosure?

Also, how should this escrow hold back be reflected on page 4 Escrow Account section if there are no monthly escrow payments?
Posted By: John Burnett

Re: CD for Transactions Without a Seller/Construction - 07/21/16 05:26 PM

The escrow on page four concerns escrowing for taxes, insurance, etc. That's not the same as construction escrow holdback.