Correctly Itemizing and Disclosing the CD

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Question:

TRID Closing Disclosure confusion on Seller-Paid H, Other, and J, Total Closing Costs Subtotals (D+I) – Should we disclose all fee/costs listed on our Title(Seller) CD? According to 1026.38(h)(2), it appears that we should list ALL loan costs on page 2 of the closing CD under section H. Also, 1026.38(k) discusses Summary of seller’s transaction. For example, we had a Judgement Payoff to a Law Firm ($987.97) in section H of Seller-Paid on our Title CD. This was not disclosed on our Buyer’s CD and does not carry over to section Seller-Paid – Section J. Total Closing Costs Subtotals. My concern is that the totals do not match the Title-CD bottom line “J-Closing Costs Subtotals.” What is the correct way to itemize and disclose these?

Answer:

For example, we had a Judgement Payoff to a Law Firm ($987.97) in section H of Seller-Paid on our Title CD.

That was an error and that should have been shown in the seller's Summaries of Transaction. The closing costs to the Borrower and Seller have to match. The payment of a judgement by the seller has nothing to do with the loan transaction.