Principal Reduction

Posted By: Bville

Principal Reduction - 09/21/18 11:26 PM

Does a principal reduction show on Line K04 or as an Adjustment in Section K of the Summaries of Transactions?
Posted By: rlcarey

Re: Principal Reduction - 09/22/18 10:58 AM

Adjustments in Line K, which is 1026.38(j)(v).

Paragraph 38(j)(1)(v).

1. Contractual adjustments. Section 1026.38(j)(1)(v) requires disclosure of amounts not otherwise disclosed under § 1026.38(j) that are owed to the seller but payable to the consumer after the real estate closing. For example, the following items must be disclosed and listed under the heading “Adjustments” under § 1026.38(j), to the extent applicable: