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Disclosing construction loan fees

Question: 
How should we disclose construction loan inspection and handling fees?
Answer: 

Inspection and handling fees that will be collected at or before closing are disclosed on the Loan Estimate and Closing Disclosure just as other closing costs are disclosed. Under the 2017 amendments, construction inspection and handling fees that will be collected after closing are included on an addendum to the Closing Disclosure. Be careful to include any closing costs on the addendum as a finance charge (but not a prepaid finance charge). Include them also in the "in 5 years" total on the last page of the Loan Estimate and in the Total of Payments on the last page of the Closing Disclosure.
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Learn more about John Burnett’s webinar
Closing Disclosures under TRID 2.0

First published on 07/29/2018

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