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pdfTILA-RESPA
INTEGRATED
DISCLOSURE
Guide to the Loan Estimate
and Closing Disclosure forms
Consumer Financial
Protection Bureau
Version log
The Bureau updates this guide on a periodic basis to reflect finalized clarifications
to the rule which impacts guide content, as well as administrative updates. Below
is a version log noting the history of this document and its updates:
Date
Version
Rule changes
July 2015
1.3
▪ Changes to bring guide into alignment
with Final Rule issued 7/21/2015 and
other technical corrections
January 2015
1.2
▪ Permits certain language related to
construction loans for transactions
involving new construction on the
Loan Estimate (Section 2.4.3 Other
Considerations)
September 2014
1.1
▪ Updates to information on who to
contact with questions on the rule
(Section 1.3)
▪ Clarification of description of time
periods less than whole years (Section
2.2.2. Loan Terms)
▪ Clarification of requirement relating to
provision of appraisals for certain loan
types. (Section 3.6.2. Other Disclosures)
April 2014
1.0
Original Document
Paperwork Reduction Act Statement
According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and not withstanding any
other provision of law a person is not required to respond to a collection of information unless it displays a valid OMB
control number. The OMB control number for this collection is 3170-0015 and 3170-0016. They expire on 10/31/2018.
The time required to complete these information collection is estimated to average three minutes per response. The
obligation to respond to this collection of information is mandatory under The Truth in Lending Act (TILA), 15 U.S.C.
1601 et sec and Real Estate Settlement Procedures Act (RESPA) of 1974, 12 U.S.C. 2601 et seq. Comments regarding
this collection of information, including the estimated response time, suggestions for improving the usefulness of the
information, or suggestions for reducing the burden to respond to this collection should be submitted to Bureau at the
Consumer Financial Protection Bureau (Attention: PRA Office), 1700 G Street NW, Washington, DC 20552, or by email
to [email protected].
2 TILA-RESPA INTEGRATED DISCLOSURE | VERSION LOG
What’s inside
Version log ��������������������������������������������������������������������������������������������������������������������������2 1� Introduction
������������������������������������������������������������������������������������������������������������������ 6
1.1
What is the purpose of this guide? ............................................................ 7
1.2
Who should read this guide? ....................................................... 8
1.3
Where can i find additional resources that will help me understand
the TILA-RESPA rule .................................................................. 9
2� Loan Estimate������������������������������������������������������������������������������������������������������������� 10
2.1
2.2
2.3
General Requirements........................................................................... 10
2.1.1
Issuance and Delivery .............................................................. 10
2.1.2
Revised Loan Estimate ................................................................ 10
2.1.3
Use of Compliance Guide........................................................ 11
2.1.4
Rounding.................................................................................... 11
2.1.5
Consummation .......................................................................... 11
Loan Estimate (page 1) ................................................................................................ 12
2.2.1
General Information ................................................................. 13
2.2.2
Loan Terms.........................................................................................18
2.2.3
Projected Payments ................................................................. 21
2.2.4
Costs at Closing ........................................................................ 27
Loan Estimate (page 2).......................................................................................29
2.3.1
Loan Costs ................................................................................. 31
2.3.2
Other Costs............................................................................ 36
3 TILA-RESPA INTEGRATED DISCLOSURE | WHAT’S INSIDE
2.4
2.3.3
Calculating Cash to Close ....................................................... 42
2.3.4
Alternative Calculating Cash to Close table for transactions
without a seller ............................................................................ 45
2.3.5
Adustable Payment (AP) Table ........................................................ 47
2.3.6
Adjustable Interest Rate (AIR) Table......................................... 48
Loan Estimate (page 3)....................................................................................... 51
2.4.1
Contact Information .................................................................. 52
2.4.2
Comparisons ............................................................................. 52
2.4.3
Other Considerations ...............................................................53
2.4.4
Confirm Receipt ........................................................................ 55
3� Closing Disclosure �����������������������������������������������������������������������������������������������������56
3.1
3.2
3.3
3.4
General Requirements...........................................................................56
3.1.1
Issuance and Delivery ..............................................................56
3.1.2
Revised Closing Disclosure ....................................................56
3.1.3
Use of Compliance Guide........................................................ 57
3.1.4
Rounding.................................................................................... 57
3.1.5
Consummation .......................................................................... 57
Closing Disclosure (page 1) ............................................................................... 58
3.2.1
General Information ................................................................. 59
3.2.2
Loan Terms.........................................................................................61
3.2.3
Projected Payments .................................................................62
3.2.4
Costs at Closing ........................................................................62
Closing Disclosure (page 2) ........................................................................ 64
3.3.1
Loan Costs ................................................................................. 65
3.3.2
Other Costs ........................................................................... 67
Closing Disclosure (page 3) ........................................................................ 70
3.4.1
Calculating Cash to Close ....................................................... 72
3.4.2
Alternative Calculating Cash to Close Table For Transaction
Without a Seller .......................................................................... 74
4 TILA-RESPA INTEGRATED DISCLOSURE | WHAT’S INSIDE
3.5
3.6
3.4.3
Summaries of Transactions .................................................... 76
3.4.4
Borrower’s Transaction ............................................................ 77
3.4.5
Seller’s Transactions .................................................................... 81
Closing Disclosure (page 4) ........................................................................ 85
3.5.1
Loan Disclosures ........................................................................... 86
3.5.2
Escrow Account ............................................................ 88
3.5.3
Adjustable Payment (AP) Table ...................................... 89
3.5.4
Adjustable Interest Rate (AIR) Table......................................... 90
Closing Disclosure (page 5) .....................................................................91
3.6.1
Loan Calculations .....................................................................92
3.6.2
Other Disclosures .....................................................................93
3.6.3
Contact Information .................................................................. 94
3.6.4
Confirm Receipt ........................................................................ 95
4. Where can I find a copy of the TILA-RESPA rule and get more information
about it? ����������������������������������������������������������������������������������������������������������������������96
5 TILA-RESPA INTEGRATED DISCLOSURE | WHAT’S INSIDE
1� Introduction
For more than 30 years, Federal law has required lenders to provide two different
disclosure forms to consumers applying for a mortgage. The law also has generally
required two different forms at or shortly before closing on the loan. Two different
Federal agencies developed these forms separately, under two Federal statutes:
the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act of
1974 (RESPA). The information on these forms is overlapping and the language is
inconsistent. Not surprisingly, consumers often find the forms confusing. It is also
not surprising that lenders and settlement agents find the forms burdensome to
provide and explain.
The Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank
Act) directs the Consumer Financial Protection Bureau (the Bureau) to integrate the
mortgage loan disclosures under TILA and RESPA sections 4 and 5. Section 1032(f)
of the Dodd-Frank Act mandated that the Bureau propose for public comment
rules and model disclosures that integrate the TILA and RESPA disclosures by July
21, 2012. The Bureau satisfied this statutory mandate and issued proposed rules
and forms on July 9, 2012. To accomplish this, the Bureau engaged in extensive
consumer and industry research, analysis of public comment, and public outreach
for more than a year. After issuing the proposal, the Bureau conducted a largescale quantitative study of its integrated disclosures with approximately 850
consumers, which concluded that the Bureau’s integrated disclosures had on
average statistically significant better performance than the current disclosures
under TILA and RESPA. The Bureau has now finalized a rule with new, integrated
disclosures (TILA-RESPA rule).1 The TILA-RESPA rule also provides a detailed
explanation of how the forms should be filled out and used.
1 Integrated Mortgage Disclosures Under the Real Estate Settlement Procedures Act
(Regulation X) and the Truth In Lending Act (Regulation Z) (78 FR 79730, Dec. 31, 2013).
6 TILA-RESPA INTEGRATED DISCLOSURE | INTRODUCTION
The first new form (the Loan Estimate) is designed to provide disclosures that
will be helpful to consumers in understanding the key features, costs, and risks
of the mortgage loan for which they are applying. The Loan Estimate must be
provided to consumers no later than three business days after they submit a loan
application. The second form (the Closing Disclosure) is designed to provide
disclosures that will be helpful to consumers in understanding all of the costs of
the transaction. The Closing Disclosure must be provided to consumers three
business days before they close on the loan.
The forms use clear language and design to make it easier for consumers to locate
key information, such as interest rate, monthly payments, and costs to close the
loan. The forms also provide more information to help consumers decide whether
they can afford the loan and to compare the cost of different loan offers, including
the cost of the loans over time.
The Loan Estimate and Closing Disclosure must be used for most closedend consumer mortgages. Home equity lines of credit, reverse mortgages, or
mortgages secured by a mobile home or by a dwelling that is not attached to real
property (i.e., land) must continue to use current disclosure forms required by
TILA and RESPA separately. The TILA-RESPA rule does not apply to loans made by
persons who are not considered “creditors” as defined in Regulation Z ( 12 CFR §
1026.2(a)(17)).
Generally, the Loan Estimate and Closing Disclosure require the disclosure of
categories of information that will vary due to the type of loan, the payment schedule
of the loan, the fees charged, the terms of the transaction, and State law provisions.
The extent of these variations cannot be shown on a single, static example. This
Guide includes most of the requirements concerning completing the Loan Estimate
and Closing Disclosure. However, this Guide may not illustrate all of the permutations
of the information required or omitted from the Loan Estimate or Closing Disclosure
for any particular transaction. Only the TILA-RESPA rule and its official interpretations
can provide complete and definitive information regarding its requirements.
See the TILA-RESPA Integrated Disclosure rule Small Entity Compliance Guide
(Compliance Guide) for more information on the TILA-RESPA rule in general.
1�1 What is the purpose of this guide?
The focus of this Guide is to provide the instructions for completing the Loan
Estimate and Closing Disclosure. This Guide also highlights common situations
7 TILA-RESPA INTEGRATED DISCLOSURE | INTRODUCTION
that may arise when completing the Loan Estimate and Closing Disclosure.
This Guide - The Guide to Completing TILA-RESPA Integrated Disclosure Forms
(Guide to Forms) is designed as a companion to the Compliance Guide which
addresses questions about the TILA-RESPA rule in general. The Compliance Guide
also discusses the good faith disclosure of settlement costs, limitations on changes
to those amounts at consummation, and other information concerning the process
requirements related to the Loan Estimate and the Closing Disclosure.
Changes related to the TILA-RESPA rule may take careful planning, time, or
resources to implement. This Guide will help you identify and plan for any
necessary changes.
This Guide summarizes the instructions for completing the Loan Estimate and
Closing Disclosure, but it is not a substitute for the TILA-RESPA rule. Only the rule
and its Official Interpretations (also known as commentary) can provide complete
and definitive information regarding its requirements. The discussions below
provide citations to the sections of the TILA-RESPA rule on the subject being
discussed. Keep in mind that the Official Interpretations, which provide detailed
explanations of many of the rule’s requirements, are found after the text of the
rule and its appendices. The interpretations are arranged by rule section and
paragraph for ease of use. The complete rule and the Official Interpretations are
available at consumerfinance.gov/regulations/integrated-mortgage-disclosuresunder-the-real-estate-settlement-procedures-act-regulation-x-and-the-truth-inlending-act-regulation-z/.
This Guide does not discuss the TILA-RESPA rule in general or other Federal or
State laws that may apply to the origination of closed-end credit.
At the end of this Guide, there is more information about the TILA-RESPA rule and
related implementation support from the Bureau.
1�2 Who should read this guide?
If your organization originates closed-end residential mortgage loans, you may find
this Guide helpful. This Guide – together with the Compliance Guide - will help you
determine your compliance obligations for the mortgage loans you originate.
This Guide may also be helpful to settlement service providers, software providers,
and other companies that serve as business partners to creditors.
8 TILA-RESPA INTEGRATED DISCLOSURE | INTRODUCTION
1�3 Where can I find additional
resources that will help me
understand the TILA-RESPA rule?
Resources to help you understand and comply with the Dodd-Frank Act mortgage
reforms and our regulations, including downloadable compliance guides, are
available through the CFPB’s website at www.consumerfinance.gov/regulatoryimplementation. If after reviewing these materials you have a specific TILARESPA regulatory interpretation question, submit a detailed message, including
your name, contact information, details about your regulatory question, and the
specific title, section, or subject matter of the regulation you are inquiring about,
to [email protected]. If you do not have access to the internet, you
may leave this information in a voicemail at 202-435-7700. Please note that Bureau
staff provide only an informal oral response to regulatory inquiries and that the
response does not constitute an official interpretation or legal advice.
Generally we are not able to respond to specific inquiries the same business day.
Actual response times will vary depending on the number of questions we are
handling and the amount of research needed to respond to your question.
Email comments about this Guide to CFPB_MortgageRulesImplementation@
cfpb.gov. Your feedback is crucial to making this Guide as helpful as possible. The
Bureau welcomes your suggestions for improvements and your thoughts on its
usefulness and readability.
The Bureau is particularly interested in feedback relating to:
▪ How useful you found this Guide for understanding the TILA-RESPA rule.
▪ How useful you found this Guide for implementing the rule at your business.
▪ Suggestions you have for improving the Guide, such as additional
implementation tips.
9 TILA-RESPA INTEGRATED DISCLOSURE | INTRODUCTION
2� Loan Estimate
2�1 General Requirements
2�1�1
Issuance and Delivery
You must provide a Loan Estimate to the consumer, either by delivering by
hand or placing in the mail, no later than three business days of the receipt of an
application. An application is considered received when the consumer provides
the following information:
▪ Consumer’s name,
▪ Consumer’s income,
▪ Consumer’s Social Security number to obtain a credit report,
▪ Address of the property,
▪ Estimate of the value of the property, and
▪ The mortgage loan amount sought.
2�1�2
Revised Loan Estimate
When there is a changed circumstance after the Loan Estimate has been provided,
the creditor can revise the Loan Estimate within three business days. A revised
Loan Estimate generally can be provided no later than seven business days before
consummation. (See section 2.1.5 below)
10 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
2�1�3
Use of Compliance Guide
Please see Compliance Guide, sections 6, 7, 8, and 9, for additional information
on details of these requirements. The information that follows discusses how to
complete the Loan Estimate. Samples of completed Loan Estimates can be found
at
consumerfinance.gov/regulatory-implementation/tila-respa/.
2�1�4
Rounding
Dollar amounts must be rounded to the nearest whole dollar where noted in
the regulation. (§ 1026. 37(o)(4)) If an amount is required to be rounded but is
composed of other amounts that are not required or permitted to be rounded,
use the unrounded amounts in calculating the total and then round the final sum.
Conversely, if an amount is required to be rounded and is composed of rounded
amounts, use the rounded amounts in calculating the total. (Comment 37(o)(4)-2)
Percentage amounts may not be rounded and should be shown up to two or three
decimals, as needed, except where noted in the regulation. (§ 1026.37(o)(4)(ii)) If
a percentage amount is a whole number, show the whole number only with no
decimals. (§ 1026.37(o)(4)(ii); Comment 37(o)(4)(ii)-1)
2�1�5
Consummation
Consummation is not the same thing as closing
or settlement. Consummation occurs when the
consumer becomes contractually obligated to
the creditor on the loan, not, for example, when
the consumer becomes contractually obligated
to a seller on a real estate transaction.
(§ 1026.2(a)(13))
This Guide uses references
to the legal obligation,
which includes the
promissory note plus any
other agreements between
the creditor and consumer
concerning the extension of
credit.
The point in time when a consumer becomes
contractually obligated to the creditor on the loan depends on applicable State
law. (§ 1026.2(a)(13); Comment 2(a)(13)-1) Creditors and settlement agents should
verify the applicable State laws to determine when consummation will occur, and
make sure delivery of the Loan Estimate occurs within three business days of the
receipt of an application.
11 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
2�2 Loan Estimate (page 1)
section 2.2.1
section 2.2.2
section 2.2.3
section 2.2.4
FIGURE 1:
LOAN ESTIMATE (PAGE 1)
12 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
Page 1 of the Loan Estimate includes general information, a Loan Terms table with
descriptions of applicable information about the loan, a Projected Payments table,
a Costs at Closing table, and a link for consumers to obtain more information
about loans secured by real property at a website maintained by the Bureau.
Page 1 of the Loan Estimate includes the title “Loan Estimate” and a statement of
“Save this Loan Estimate to compare with your Closing Disclosure.” (§ 1026.37(a)(1),(2))
The top of page 1 also includes the name and address of the creditor.
(§ 1026.37(a)(3)) A logo or slogan can be used along with the creditor’s name and
address, so long as the logo or slogan does not exceed the space provided for
that information. (§ 1026.37(o)(5)(iii))
If there are multiple creditors, use only the name of the creditor completing the
Loan Estimate. (Comment 37(a)(3)-1) If a mortgage broker is completing the Loan
Estimate, use the name and address of the creditor if known. If not yet known,
leave this space blank. (Comment 37(a)(3)-2)
2�2�1
FIGURE 2:
General Information
GENERAL INFORMATION OF THE LOAN ESTIMATE
Date Issued
The date the Loan Estimate is mailed or delivered to the consumer. (§ 1026.37(a)(4))
Applicants
Applicants includes the name and mailing address of the consumer(s) applying
for the loan. Use each Applicant’s name and mailing address if there are multiple
Applicants. An additional page may be added to the Loan Estimate if the space
provided is insufficient to list all of the Applicants. (Comment 37(a)(5)-1)
13 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
Property
Property is the address of the property (which must include the zip code) that
will secure the transaction. If the address of the Property is unavailable, use a
description of the location of the property, for example a lot number. Always use
a zip code. (Comment 37(a)(6)-1) Personal property such as furniture or appliances
that also secures the credit transaction may be, but is not required to be included
as Property. An additional page may not be appended to the Loan Estimate to
disclose a description of personal property. (Comment 37(a)(6)-2)
Sale Price or Appraised Value or Estimated Value
If the loan is for a purchase money mortgage, use Sale Price. (§ 1026.37(a)(7)(i))
If personal property is included in the Sale Price of the Property, use that price
without any reduction for the appraised or estimated value of the personal
property. (Comment 37(a)(7)-2)
If the loan is for a transaction without a seller, use Appraised Value or Estimated
Value. (Comment 37(a)(7)-1)
Loan Term
Loan Term is the term of the debt obligation. Describe the Loan Term as
“years” when the Loan Term is in whole years. For example “1 year” or “30 years.”
(Comment 37(a)(8)-1.i, -1.ii) For a Loan Term that is more than 24 months but is not
whole years, describe using years and months with the abbreviations “yr.” and “mo.,”
respectively. For example, a loan term of 185 months is disclosed as “15 yr., 5mo.”
For a Loan Term that is less than 24 months and not whole years, use months only
with the abbreviation “mo.” For example, “6 mo.” or “16 mo.” (Comment 37(a)(8)-2)
Purpose
Describe the consumer’s intended use for the loan. (§ 1026.37(a)(9)) Purpose is
disclosed using one of four descriptions: Purchase, Refinance, Construction, or
Home Equity Loan.
▪ Purchase is disclosed if the loan will be used to finance the Property’s
acquisition. (§ 1026.37(a)(9)(i))
▪ Refinance is disclosed if the loan will be used for the refinance of an existing
obligation that is secured by the Property (even if the creditor is not the holder
or servicer of the original obligation). (§ 1026.37(a)(9)(ii))
14 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
▪ Construction is disclosed if the loan will be used to finance the initial
construction of a dwelling on the property disclosed on the Loan Estimate.
(§ 1026.37(a)(9)(iii))
▪ Home Equity Loan is disclosed if the loan will be used for any other purpose.
(§ 1026.37(a)(9)(iv))
Product
Provide a description of the loan. You are required to include two pieces of
information in this disclosure:
The first piece of information is any payment feature that may change the
periodic payment, which includes Negative Amortization, Interest Only,
Step Payment, Balloon Payment, or Seasonal Payment. (§ 1026.37(a)(10)(ii))
Additionally, the duration of the relevant payment feature must be disclosed with
a Negative Amortization, Interest Only, Step Payment, or Balloon Payment.
(§ 1026.37(a)(10)(iv)) For example, a payment feature where there is a five-year
period during which the payments cover only interest, and are not applied to the
principal balance, would be disclosed as a 5 Year Interest Only for the payment
feature.
▪ Negative Amortization is when the principal balance of the loan may increase
due to the addition of accrued interest to the principal balance.
▪ Interest Only is when one or more regular periodic payments may be applied
only to interest accrued and not to the principal of the loan.
▪ Step Payment is when the scheduled variations in regular periodic payment
amounts occur that are not caused by changes to the interest rate during the
loan term.
▪ Balloon Payment is when the terms of the legal obligation include a payment
that is more than two times that of a regular periodic payment.
▪ Seasonal Payment is when the terms of the legal obligation expressly provide
that regular periodic payments are not scheduled between specified unitperiods on a regular basis. For example, a “teacher” loan that does not require
monthly payments during summer months has a Seasonal Payment.
▪ If the loan can be described with more than one of these descriptions, only the
first applicable feature is disclosed. (§ 1026.37(a)(10)(iii)) For example, a loan that
would result in both Negative Amortization and a Balloon Payment would only
disclose Negative Amortization as part of Product.
15 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
The second piece of information disclosed is whether the loan uses an Adjustable
Rate, Step Rate, or Fixed Rate to determine the interest rate applied to the
principal balance. (§ 1026.37(a)(10)(i))
▪ An interest rate is an Adjustable Rate if the interest rate may increase after
consummation, but the rates that will apply or the periods for which they will
apply are not known at consummation. (§ 1026.37(a)(10)(i)(A))
ú Each description must be preceded by the duration of any introductory
rate or payment period, and the first adjustment period, as applicable.
(§ 1026.37(a)(10)(iv)) For example, a product with an introductory rate that
is fixed for the first five years and adjusts every three years starting in year
6 is a 5/3 Adjustable Rate.
ú When there is no introductory period for an Adjustable Rate, disclose “0.”
(Comment 37(a)(10)-1.i.A) For example, a product with no introductory
rate that adjusts every year after consummation is a 0/1 Adjustable Rate.
▪ An interest rate is a Step Rate if the interest rate will change after consummation
and the rates that will apply and the periods for which they apply are known at
consummation. (§ 1026.37(a)(10)(i)(B))
ú Each description must be preceded by the duration of any introductory
rate or payment period, and the first adjustment period, as applicable.
(§ 1026.37(a)(10)(iv)) For example, a product with a step rate that lasts for
ten years, adjusts every year for five years, and then adjusts every three
years for the next 15 years is a 10/1 Step Rate. (Comment 37(a)(10)-1.ii)
ú When there is no introductory rate for a Step Rate, disclose “0” and then
the applicable time period until the first adjustment.
(Comment 37(a)(10)-1.ii)
▪ An interest rate is a Fixed Rate if the interest rate is not an Adjustable Rate or
Step Rate. (§ 1026.37(a)(10)(i)(C))
The following are examples of Product with both pieces of information included:
▪ Year 7 Balloon Payment, 3/1 Step Rate: a step rate with an introductory interest
rate that lasts for three years and adjusts each year thereafter until a balloon
payment is due in the seventh year of the loan term.
▪ 2 Year Negative Amortization, Fixed Rate: a fixed rate product with a step-payment
feature for the first two years of the legal obligation that may negatively amortize.
When the time periods disclosed in Product are not in whole years, for time
16 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
periods of 24 months or more, disclose the applicable fraction of a year by use of
decimals rounded to two places. For time periods of 24 months or less, disclose the
number of months with the abbreviation “mo.” (Comment 37(a)(10)-3) For example:
▪ An Adjustable Rate Product with an
introductory interest rate for 31 months
that adjusts every year thereafter is a 2�58/1
Adjustable Rate.
For more Product examples,
please see Comments
37(a)(10)-1, -2 and -3 in the
Official Interpretations to
Regulation Z.
▪ An Adjustable Rate Product with an
introductory interest rate for 18 months that
adjusts every 18 months thereafter is an 18 mo./18 mo. Adjustable Rate.
Loan Type
Loan Type is the type of the loan, such as Conventional or FHA.
For Loan Type, disclose:
▪ Conventional if the loan is not guaranteed or insured by a Federal or State
government agency,
▪ FHA if the loan is insured by the Federal Housing Administration,
▪ VA if the loan is guaranteed by the U.S. Department of Veterans Affairs, and
▪ Other with a brief description if the loan is insured or guaranteed by another
Federal or a State agency. (§ 1026.37(a)(11))
Loan ID#
Loan ID # is the creditor’s loan identification number that may be used by a
creditor, consumer, and other parties to identify the transaction. The Loan ID # may
contain alpha-numeric characters and must be unique to the particular transaction.
The same Loan ID # may not be used for different, but related, loan transactions
(such as different loans to the same borrower). When a revised Loan Estimate
is issued, the Loan ID # must be sufficient for the purpose of identifying the
transaction associated with the initial Loan Estimate. (Comment 37(a)(12)-1)
17 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
Rate Lock
Indicate the rate is locked with Yes, indicate the rate is not locked with No.
(§ 1026.37(a)(13))
When the interest rate is locked at the time of the Loan Estimate’s delivery, the
date and time (including the applicable time zone) when the lock period ends must
be disclosed. (§ 1026.37(a)(13)(i))
The date and time (including the applicable time zone) at which the estimated
closing costs expire must be disclosed on every Loan Estimate. (§ 1026.37(a)(13)(ii))
2�2�2
FIGURE 3:
Loan Terms
LOAN TERMS TABLE OF THE LOAN ESTIMATE
Disclose in the Loan Terms table:
▪ Loan Amount (if the amount is in whole dollars, do not disclose cents)
(§ 1026.37(o)(4)),
▪ Initial Interest Rate,
▪ Initial Monthly Principal & Interest amount,
▪ Any adjustments to these amounts after consummation,
▪ Whether the loan includes a Prepayment Penalty, and
▪ Whether the loan includes a Balloon Payment. (§ 1026.37(b))
18 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
Interest Rate & Monthly Principal & Interest
If the initial Interest Rate is not known at consummation, the fully-indexed rate is
disclosed; a fully-indexed rate is the interest rate calculated using the index value
and margin at the time of consummation. (§ 1026.37(b)(2))
The initial principal and interest payment amount also would be calculated using
the same fully-indexed rate. (§ 1026.37(b)(3))
Adjustment to Loan Amount, Interest Rate, and Monthly
Principal & Interest after consummation
Under the subheading Can this amount
increase after closing?, if the Loan Amount,
Interest Rate, or Monthly Principal & Interest
amounts can increase after consummation,
disclose Yes where applicable with the
information pertinent to the adjustment after
consummation. (§ 1026. 37(b)(6))
When describing time
periods less than 24 months
that are not whole years,
see the instructions related
to the Product in section
2.2.1 above
▪ For an adjustment in Loan Amount, the creditor must also disclose the
maximum principal balance for the transaction and the due date (expressed
as the year or month in which it occurs, rather than an exact date) of the last
payment that may cause the principal balance to increase, together with a
statement whether the maximum principal balance may or will occur under the
terms of the legal obligation. (§ 1026.37(b)(6)(i)) The date disclosed is the year
in which the event occurs, counting from the due date of the initial periodic
payment. (§ 1026.37(b)(8)(ii))
▪ For an adjustment in the Interest Rate, also disclose the frequency of interest rate
adjustments, the date when the interest rate may first adjust, the maximum interest
rate, and the first date when the interest rate can reach the maximum interest
rate. (§ 1026.37(b)(6)(ii)) The date disclosed is the year in which the event occurs,
counting from the date that interest for the first scheduled periodic payment
begins to accrue after consummation. (§ 1026.37(b)(8)(i)) Also, disclose and
reference the Adjustable Interest Rate (AIR) Table on page 2 of the Loan Estimate.
(§ 1026.37(b)(6)(ii))
▪ For an adjustment to the Monthly Principal & Interest, the creditor would
also disclose the scheduled frequency of adjustments, due date of the first
adjustment, and the maximum possible amount (and the earliest date it can
occur) of the Monthly Principal & Interest. In addition, if there is a period
during which only interest is required to be paid, also disclose that fact and the
19 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
due date of the last periodic payment of such period. (§ 1026.37(b)(6)(iii)) The
date disclosed is the year in which the event occurs, counting from the due
date of the initial payment. (§ 1026.37(b)(8)(ii)) Also, disclose and reference the
Adjustable Payment (AP) Table on page 2. (§ 1026.37(b)(6)(iii))
When the Loan Amount, Interest Rate, or Monthly Principal & Interest payment
cannot increase after consummation, disclose No where applicable. (§ 1026.37(b)(6))
Prepayment Penalty and Balloon Payment
A Prepayment Penalty is a charge imposed for paying all or part of a transaction’s
principal before the date on which the principal is due. It does not include a
waived third-party charge that the creditor imposes if the consumer prepays the
loan’s entire principal sooner than 36 months after closing. (§ 1026.37(b)(4))
A Balloon Payment is a payment that is more than two times a regular periodic
payment. (§ 1026.37(b)(5))
Under the subheading Does the loan have these features?, when the loan has a
Prepayment Penalty or a Balloon Payment disclose Yes, as applicable.
(§ 1026.37(b)(4) and (5)) When the answer is Yes to either, also disclose, as
applicable:
▪ The maximum amount of the Prepayment
Penalty and the date when the period
during which the penalty may be imposed
terminates. For example, As high as $3,240
if you pay off the loan in the first two years.
(§ 1026.37(b)(7)(i))
When describing time
periods less than 24
months that are not whole
years, see the instructions
related to the Product in
section 2.2.1 above.
▪ The maximum amount of the Balloon
Payment and the due date of such payment. For example, You will have to pay
$149,263 at the end of year 7. (§ 1026.37(b)(7)(ii))
20 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
2�2�3
FIGURE 4:
Projected Payments
PROJECTED PAYMENTS TABLE OF THE LOAN ESTIMATE
The Projected Payments table shows estimates of the periodic payments that the
consumer will make over the life of the loan. Creditors must disclose estimates of
the following periodic payment amounts in the Projected Payments table:
▪ Principal & Interest;
▪ Mortgage Insurance;
▪ Estimated Escrow;
▪ Estimated Total Monthly Payment; and
▪ Estimated Taxes, Insurance, & Assessments, even if not paid with escrow funds.
The Projected Payments table also describes whether taxes, insurance, and
other assessments will be paid with funds in the consumer’s escrow account.
(§ 1026.37(c)(2))
General Instructions
Show in one column the initial Periodic Payment (or range of payments if required)
for each of Principal & Interest, Mortgage Insurance, and Estimated Escrow.
(§ 1026.37(c)(1)) Depending on the features of the loan, subsequent periodic
payments also may be required to be disclosed. The Periodic Payment is the
regularly scheduled payment of Principal & Interest, Mortgage Insurance, and
Estimated Escrow. (Comment 37(c)(1)(i)-1)
21 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
Initial Periodic Payment
To calculate the initial Periodic Payment, use the interest rate that will apply at
closing, including any initial discounted or premium interest rate. If the interest rate
at closing is not known, such as for an adjustable rate loan without an introductory
fixed rate period, use the fully-indexed rate to determine the initial Periodic
Payment. (Comment 37(c)(1)(i)-2)
Subsequent Periodic Payments
If any of the triggering events listed below may occur during the life of the loan,
add a column to show the amount of the periodic payments after the triggering
event. (§ 1026.37(c)(1)(i)):
▪ The Principal & Interest amount or range of such amount may change (for
example if the loan has an adjustable rate). (§ 1026.37(c)(1)(i)(A))
ú Negative Amortization – for loans that have a Negative Amortization
feature, the Principal & Interest amount may change when the Negative
Amortization period ends under the terms of the legal obligation,
meaning the consumer must begin making payments that do not result in
an increase of the principal balance. (Comment 37(c)(1)(i)(A)-2)
ú Interest Only – for Interest Only loans, the Principal & Interest amount
may change when the Interest Only period ends, meaning the consumer
must begin making payments that do not defer repayment of principal.
(Comment 37(c)(1)(i)(A)-3)
ú Minor Periodic Payment variations resulting solely from the fact that
months have different numbers of days are not triggering events.
(Comment 37(c)(1)(i)(A)-1)
▪ There is a scheduled Balloon Payment. (§ 1026.37(c)(1)(i)(B))
▪ The lender must automatically terminate Mortgage Insurance or any functional
equivalent. (§ 1026.37(c)(1)(i)(C))
ú Even if the borrower may cancel the insurance earlier, use the date on
which the lender must automatically terminate Mortgage Insurance
coverage under applicable law. Only termination of Mortgage Insurance
is a triggering event, while a decline in Mortgage Insurance premiums is
not. (Comment 37(c)(1)(i)(C)-3)
▪ When the Periodic Payment amount changes more than once in a single year,
22 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
show in the subsequent column the Periodic Payment amounts in the year
following the one in which there were multiple changes. (§ 1026.37(c)(1)(i)(D))
A year for this table is the 12-month period following the due date of the initial
Periodic Payment. (§ 1026.37(c)(3)(ii))
Number of Columns
The maximum number of columns the Periodic Payments table may contain is four.
If a loan has more than four triggering events, show a range of payments in the
fourth column that reflects all remaining periodic payments not shown in the first
three columns. (§ 1026.37(c)(1)(ii)) EXCEPT:
▪ A Balloon Payment scheduled as a final payment always requires its own
column. (§ 1026.37(c)(1)(ii)(A))
▪ If disclosing the final Balloon Payment means that other triggering events will
not fit within the four-column maximum, show the other triggering events as a
range of payments in the third column. (§ 1026.37(c)(1)(ii)(A))
▪ A Balloon Payment that is not a final payment is a triggering event that does not
necessarily require its own column. (Comment 37(c)(1)(ii)(A)-1)
▪ The automatic termination of Mortgage Insurance generally requires the
corresponding periodic payment to be shown in its own column, unless doing
so would exceed the four-column maximum. (§ 1026.37(c)(1)(ii)(B))
ú Where the automatic termination of Mortgage Insurance need not be
shown in its own column, the column showing the next periodic payment
or range of payments should show the periodic payment amount without
Mortgage Insurance. (Comment 37(c)(1)(ii)(B)-1)
▪ Show a range of payments rather than a single payment when:
ú There are more triggering events than can be shown in four columns and
thus one column must be used to show two or more periodic payment
amounts.
ú More than one of the triggering events occurs in a single year or one of the
triggering events occurs in the same year as the initial periodic payment.
ú The Principal & Interest payment may adjust based on an interest rate
index and the rates are not yet known (i.e., for an adjustable rate loan).
(§ 1026.37(c)(1)(iii))
▪ For a column that contains a range of payments, show both a minimum and
23 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
maximum payment using rounded dollar amounts. (§ 1026.37(c)(1)(iii), (o)(4)(ii))
For an Adjustable Rate loan, use the maximum and minimum interest rates that
could apply such as through an interest rate cap. (Comment 37(c)(1)(iii)(C)-1)
▪ Ranges of payments are required only for the Principal & Interest amount and
the Estimated Total Monthly Payment. Do not show a range of payments for
Mortgage Insurance or Estimated Escrow. (Comment 37(c)(1)(iii)-1)
2.2.3. A Payment Calculation Column Headings
To the right of the Payment Calculation label, as column headings, use the years of
the loan during which the payments or ranges of payments shown in that column
will apply. (§ 1026.37(c)(3)(ii))
▪ Use a sequence of whole years, counting from the due date of the initial
Periodic Payment.
ú For example, a two-column projected payments table might contain
the headings “years 1-7” and “Years 8-30” if a triggering event occurs 85
months after the due date of the initial Periodic Payment. If a triggering
event occurs in the middle of a year, use the next year in sequence as the
heading for the subsequent column.
ú For example, assume a 30-year loan that requires Interest Only payments
for the first 54 months from the due date of the initial Periodic Payment.
The column heading for the initial Periodic Payment would be “Years 1-5”
and the column heading for the subsequent Periodic Payment would be
“Years 6-30” because the triggering event occurs during the 5th year of
the loan. (Comment 37(c)(3)(ii)-1)
▪ For Periodic Payments that may increase based on an adjustment of the
interest rate, use the maximum loan term possible under the terms of the legal
obligation. To calculate the maximum loan term, assume that the interest rate
rises as rapidly as is possible under the terms of the legal obligation, taking into
account any applicable interest rate caps. (Comment 37(c)(3)(ii)-2)
▪ For a Balloon Payment scheduled as a final payment, use Final Payment as the
column heading. (§ 1026.37(c)(3)(iii))
2�2�3�B
Principal & Interest
Use the amount due for Principal & Interest for the period shown in the column
heading. (§ 1026.37(c)(2)(i)) If the payment or range of payments includes any
24 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
payments of Interest Only, use the phrase Only Interest under the amount of the
payment or range of payments.
Adjustable Rate Loans
Generally, calculate Principal & Interest using the maximum payments by
assuming that the interest rate will rise as rapidly as possible, taking into account
the terms of the legal obligation, including any applicable caps on interest rate
adjustments and lifetime interest rate cap. Other laws, such as a State usury law,
can set the maximum rate if the legal obligation does not include a lifetime interest
rate cap. Calculate the minimum payments by assuming that the interest rate will
decrease as rapidly as possible, taking into account any introductory rates, caps on
interest rate adjustments, and lifetime interest rate floor. For an Adjustable Rate
loan based on an index that has no lifetime interest rate floor, the minimum interest
rate is equal to the margin. (Comment 37(c)(2)(i)-1)
For loans with a Negative Amortization feature, calculate Principal & Interest
using the maximum payment amounts after the end of the period during which
the principal balance may increase by assuming the maximum principal amount
permitted under the terms of the legal obligation at the end of the period.
Calculate the minimum payment amount by assuming the interest rate is the
minimum possible under the terms of the legal obligation. (Comment 37(c)(2)(i)-2)
For loans with a Balloon Payment feature that may change depending on previous
interest rate adjustments, calculate Principal & Interest using the assumptions for
minimum and maximum interest rates described above and show as a range of
payments. (Comment 37(c)(2)(i)-3)
2�2�3�C
Mortgage Insurance
Disclose the maximum amount payable as Mortgage Insurance that corresponds
to the Principal & Interest payment shown in the same column. (§ 1026.37(c)(2)(ii))
Disclose as a rounded number. (§ 1026.37(o)(4)(ii))
Mortgage Insurance includes any mortgage guarantee that provides coverage
similar to mortgage insurance (such as a United States Department of
Veterans Affairs or United States Department of Agriculture guarantee), even
if not technically considered insurance under State or other applicable law.
(§ 1026.4(b)(5); Comment 37(c)(1)(i)(C)-1)
Calculate Mortgage Insurance premiums based on the principal balance that
will exist after changes to the interest rate and payment amounts pursuant to the
25 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
legal obligation. The calculations should take into account any initial discounted
or premium interest rate. For example, for an Adjustable Rate transaction that has
a discounted interest rate during an initial five-year period, calculate Mortgage
Insurance premiums using a composite rate based on the rate in effect during
the initial five-year period and, thereafter, the fully-indexed rate, unless otherwise
required by applicable law. (Comment 37(c)(1)(i)(C)-2)
If Mortgage Insurance is not required, disclose “0.” (Comments 37(c)(2)(ii)-1 and -2)
Disclose the Mortgage Insurance amount that corresponds with the Principal &
Interest amount shown in the same column, even if Mortgage Insurance is paid on
a different schedule than Principal & Interest. (Comment 37(c)(2)(ii)-2)
2�2�3�D Estimated Escrow
Disclose the amount the consumer will pay into an escrow account each month
under the terms of the legal obligation. (§ 1026.37(c)(2)(iii)) Use a rounded number.
(§ 1026.37(o)(4)(ii)) If an escrow account will not be established, disclose “0.”
Disclose “—” if there will be an escrow account, but the escrow account will be
closed during the time-frame attributable to the applicable Periodic Payment.
(Comment 37(c)(2)(iii)-1)
2�2�3�E
Estimated Total Monthly Payment
For each column, disclose the sum of the Principal & Interest, Mortgage
Insurance, and Estimated Escrow as Estimated Total Monthly Payment.
(§ 1026.37(c)(2)(iv)) The amount is rounded if any of the component amounts are
rounded. (§ 1026.37(o)(4)(i)(C))
2�2�3�F
Estimated Taxes, Insurance & Assessments
As Estimated Taxes, Insurance & Assessments, disclose the total monthly
amount due for Property Taxes, Homeowner’s Insurance, charges imposed by a
cooperative, condominium or homeowners association; ground rent; leasehold
payments; and certain insurance premiums or charges if required by the lender.
(§§ 1026.37(c)(4)(ii), 1026.43(b)(8)) Disclose Estimated Taxes, Insurance &
Assessments as a rounded number. (§ 1026.37(o)(4)(i))
Homeowner’s Insurance is any insurance against loss or damage, or against
liability arising out of the property. (§§ 1026.4(b)(8), 1026.37(c)(4)(ii)) The
insurance premiums included as Estimated Taxes, Insurance & Assessments are
for credit life, accident, health, or loss-of-income insurance; insurance against
26 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
loss of or damage to property, or against liability arising out of the ownership
or use of property; and debt cancellation or debt suspension coverage.
(§§ 1026.4(b)(7), (8), (10), 1026.37(c)(4)(ii))
To calculate Property Taxes, Homeowner’s Insurance, and other insurance
premiums, use the taxable assessed value of the real property securing the
transaction after consummation, including the value of any improvements or
construction, to the extent known, and the replacement costs of the property over
the first year. (§ 1026.37(c)(5))
Include these amounts as Estimated Taxes, Insurance & Assessments even if an
escrow account will not be established under the terms of the legal obligation.
By the use of checkboxes, disclose if Property Taxes, Homeowner’s Insurance, or
Other required charges will be paid from an escrow account established under the
terms of the legal obligation under the heading “This estimate includes”. When
applicable, describe briefly the type of charge to the right of the word “Other”.
If there is more than one Other charge, disclose one type and the phrase and
additional charges. (Comment 37(c)(4)(iv)-1)
Under a heading of In Escrow?: disclose Yes when an escrow account will be
established that will pay the item; or disclose No when an escrow account will not be
established under the terms of the legal obligation for Property Taxes, Homeowner’s
Insurance, and Other. If more than one item is disclosed as Other, disclose Yes,
Some when one item is included and another is not. (Comment 37(c)(4)(iv)-2)
2�2�4
FIGURE 5:
Costs at Closing
COSTS AT CLOSING TABLE OF THE LOAN ESTIMATE
The Costs at Closing table shows:
Estimated Closing Costs are calculated in the same manner as the Total Closing
27 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
Costs disclosed on page 2 of the Loan Estimate. (See section 2.3.1 below) The
Total Closing Costs are also itemized to show from page 2 of the Loan Estimate:
▪ The total of the Loan Costs table,
▪ The total of the Other Costs table, and
▪ Lender Credits in the Total Closing Costs subheading. (§ 1026.37(d)(1)(i))
▪ The estimated amount of cash the consumer will be expected to pay at closing
is also shown as Estimated Cash to Close. This amount is the same as the
Estimated Cash to Close, from the Calculating Cash to Close table on page 2 of
the Loan Estimate. (§ 1026. 37(d)(1)(ii))
Alternative Costs at Closing Table
FIGURE 6:
ALTERNATIVE COSTS AT CLOSING TABLE OF THE LOAN ESTIMATE
For transactions without a seller, an Alternative Costs at Closing table shown as
Figure 6 (together with an Alternative Calculating Cash to Close table on page 2
of the Loan Estimate shown later in Figure 20) can be used in place of the Costs
at Closing table shown in Figure 5 above. (§ 1026.37(d)(2)) The Alternative Costs
at Closing table contains a variation that places checkboxes with Estimated Cash
to Close in order to indicate whether the cash is due from or to the consumer.
(Comment 37(d)(2)-2) If the Alternative Costs at Closing table is used, then the
Alternative Calculating Cash to Close on page 2 of the Loan Estimate also must
be used. (Comment 37(d)(2)-1)
28 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
2�3 Loan Estimate (page 2)
section 2.3.1
section 2.3.2
section 2.3.3
section 2.3.6
section 2.3.5
FIGURE 7:
LOAN ESTIMATE (PAGE 2)
29 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
Up to four main categories of costs are disclosed on page 2 of the Loan Estimate:
1� A good-faith itemization of the Loan Costs and Other Costs associated with the
loan. (§ 1026.37(f) and (g))
2� A Calculating Cash to Close table that shows how the amount of cash needed
at closing is calculated. (§ 1026.37(h))
3� For transactions with adjustable monthly payments, an Adjustable Payments
(AP) Table with relevant information about how the monthly payments will
change. (§ 1026.37(i))
4� For transactions with adjustable interest rates, an Adjustable Interest Rate
(AIR) Table with relevant information about how the interest rate will change.
(§ 1026.37(j))
The items associated with the mortgage are broken down into two general types,
Loan Costs and Other Costs. Generally, Loan Costs are those costs paid by the
consumer to the creditor and third-party providers of services the creditor requires
to be obtained by the consumer during the origination of the loan. (§ 1026.37(f))
Other Costs include taxes, governmental recording fees, and certain other
payments involved in the real estate closing process. (§ 1026.37(g))
Items that are a component of title insurance or are for conducting the closing
must include the introductory description of Title –. (§§ 1026.37(f)(2)(i), (g)(4)(i))
If State law requires additional disclosures, those additional disclosures are made
on a document whose pages are separate from, and not presented as part of, the
Loan Estimate. (Comments 37(f)(6)-1, 37(g)(8)-1)
The amounts disclosed in the Loan Costs and Other Costs table are rounded to
the nearest whole dollar. The daily amount of Prepaid Interest and the monthly
amounts for the items in the Initial Escrow Payment at Closing in the labels are not
rounded, but the calculated amounts for those items are rounded to the nearest
whole dollar. (§ 1026.37(o)(4))
The Loan Costs and Other Costs tables are further broken down in the next
subsection.
30 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
2�3�1
FIGURE 8:
Loan Costs
LOAN COSTS TABLE OF THE LOAN ESTIMATE
Loan Costs are disclosed in three subheadings, each of which is subtotaled:
▪ Origination Charges,
▪ Services You Cannot Shop For, and
▪ Services You Can Shop For.
Disclose the sum of these three subtotals as Total Loan Costs. (§ 1026.37(f))
31 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
Origination Charges
FIGURE 9:
ORIGINATION CHARGES TABLE OF THE LOAN ESTIMATE
Origination Charges are items the consumer will pay to each creditor and loan
originator for originating and extending credit. (§ 1026.37(f)(1))
First, include the amount paid, if any, by the consumer to the creditor to reduce the
interest rate (sometimes referred to as “points”) as both a percentage of the loan
amount and a dollar amount. (§ 1026.37(f)(1)(i)) If no points are charged, then leave
blank both the percentage of points stated in the label and the dollar amount.
(Comment 37(f)(1)-4)
Any other items that the consumer will pay to the creditor and loan originator may
also be disclosed, up to 13 individual items. (§ 1026.37(f)(1)(ii)) If there are more
than 13 Origination Charges, disclose the total amount of the items that exceed 12
as Additional Charges. (§ 1026.37(f)(6)(i)) Describe the items, other than for points
paid, using terminology that clearly and conspicuously describes the service that is
disclosed. (Comment 37(f)(1)-3)
The following items should be itemized separately in the Origination Charges
subheading:
▪ Compensation paid directly by a consumer to a loan originator that is not also
the creditor; or
▪ Any charge imposed to pay for a loan level pricing adjustment assessed on the
creditor that is passed on to the consumer as a cost at consummation and not as
an adjustment to the interest rate. (Comment 37(f)(1)-5)
Only items paid directly by the consumer to compensate a loan originator
are Origination Charges. Do not disclose compensation to a loan originator
paid indirectly by a creditor through the interest rate on the Loan Estimate.
(Comment 37(f)(1)-2)
32 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
Services You Cannot Shop For
FIGURE 10:
SERVICES YOU CANNOT SHOP FOR TABLE OF THE LOAN ESTIMATE
Services You Cannot Shop For are items provided by persons other than the
creditor or mortgage broker that the consumer cannot shop for and will pay for
at settlement. (§ 1026.37(f)(2)) Items listed as Services You Cannot Shop For must
use terminology that describes each item, and disclose them in alphabetical order.
(§ 1026.37(f)(5))
Services You Cannot Shop For might include:
▪ Appraisal fee,
▪ Appraisal management company fee,
▪ Credit report fee,
▪ Flood determination fee,
▪ Government funding fee (such as a VA or USDA guarantee fee, or any other fee
paid to a government entity as part of a governmental loan program),
▪ Homeowner’s association certification fee,
▪ Lender’s attorney fee,
▪ Tax status search fee,
▪ Third-party subordination fee,
▪ Title – closing protection letter fee,
▪ Title – lender’s title insurance policy, and
▪ An upfront mortgage insurance fee (unless the fee is a prepayment of future
premiums or a payment into an escrow account). (Comment 37(f)(2)-2)
Describe services related to the issuance of title insurance policies with the word
Title – at the beginning of the item. (Comment 37(f)(2)-3)
Items that are required for the issuance of title insurance policies may include:
33 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
▪ Examination and evaluation of title evidence to determine the insurability
of the title being examined and what items to include or exclude in any title
commitment and policy to be issued,
▪ Preparation and issuance of the title commitment or other document that
discloses the status of title, identifies the conditions that must be met before the
policy will be issued, and obligates the insurer to issue a policy of title insurance
if such conditions are met,
▪ Resolution of title underwriting issues and taking steps needed to satisfy any
conditions for the issuance of title insurance policies,
▪ Preparation and issuance of the title insurance policies, and
▪ Payment of premiums for any lender’s title insurance coverage.
(Comment 37(f)(2)-3)
The amount of the premium for the lender’s title insurance coverage must be
disclosed without any adjustment to the premium that might be made for the
simultaneous purchase of an owner’s title insurance policy. (Comment 37(f)(2)-4)
Disclose no more than 13 Services You Cannot Shop For. (§ 1026.37(f)(2)(ii)) If there
are more than 13 Services You Cannot Shop For, disclose the total amount of the
items that exceed 12 with the label Additional Charges. An addendum to the Loan
Estimate cannot be used to disclose the additional items. (§ 1026.37(f)(6)(i))
Services You Can Shop For
FIGURE 11:
SERVICES YOU CAN SHOP FOR TABLE OF THE LOAN ESTIMATE
Services You Can Shop For are provided by persons other than the creditor or
mortgage broker and are services that the consumer can shop for and will pay
for at settlement. (§ 1026.37(f)(3)) Items listed as Services You Can Shop For must
use terminology that describes each item and disclose them in alphabetical order.
(§ 1026.37(f)(5))
A creditor permits a consumer to shop for an item if the creditor permits the consumer
to select the provider of that item, subject to reasonable requirements (such as
appropriate licensing of the provider). (§ 1026.19(e)(1)(vi)(A); Comment 19(e)(1)(vi)-1)
34 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
Services You Can Shop For might include:
▪ Pest inspection fee,
▪ Survey fee,
▪ Title – closing agent fee, and
▪ Title – closing protection letter fee. (Comment 37(f)(3)-2)
Describe services related to the issuance of title insurance policies with the word
Title – at the beginning of the item. (Comment 37(f)(2)-3)
Items that are required for the issuance of title insurance policies may include:
▪ Examination and evaluation of title evidence to determine the insurability
of the title being examined and what items to include or exclude in any title
commitment and policy to be issued,
▪ Preparation and issuance of the title commitment or other document that
discloses the status of title, identifies the conditions that must be met before the
policy will be issued, and obligates the insurer to issue a policy of title insurance
if such conditions are met,
▪ Resolution of title underwriting issues and taking steps needed to satisfy any
conditions for the issuance of title insurance policies,
▪ Preparation and issuance of the title insurance policies, and
▪ Payment of premiums for any lender’s title insurance coverage.
(Comment 37(f)(3)-3)
The creditor must disclose the amount of the premium for the lender’s title
insurance coverage without any adjustment to the premium that might be made for
the simultaneous purchase of an owner’s title insurance policy. (Comment 37(f)(3)-3)
Disclose no more than 14 Services You Can Shop For. (§ 1026.37(f)(3)(ii)) If there
are more than 14 Services You Can Shop For, disclose the total amount of the
items that exceed 13 with the label Additional Charges. (§ 1026.37(f)(6)(ii)(B)) An
addendum to the Loan Estimate can be used to disclose the additional items.
(§ 1026.37(f)(6)(ii))
35 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
Total Loan Costs
FIGURE 12:
TOTAL LOAN COSTS TABLE OF THE LOAN ESTIMATE
Total Loan Costs is the sum of the subtotals of Origination Charges, Services You
Cannot Shop For, and Services You Can Shop For. (§ 1026.37(f)(4))
2�3�2
FIGURE 13:
Other Costs
OTHER COSTS TABLE OF THE LOAN ESTIMATE
Disclose Other Costs under four subheadings, each of which is subtotaled:
▪ Taxes and Other Government Fees,
36 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
▪ Prepaids,
▪ Initial Escrow Payment at Closing, and
▪ Other.
Total Other Costs is the sum of these four subtotals. (§ 1026.37(g)(5))
Other Costs are established by government action, determined by standard
calculations applied to ongoing fixed costs, or based on an obligation incurred
by the consumer independently of any requirement imposed by the creditor.
(Comment 37(g)-1) Other items that are required to be paid at or before closing
pursuant to the contract for sale between the consumer and a seller are disclosed
on the Loan Estimate to the extent the creditor has knowledge of those items
when it issues the Loan Estimate. (Comment 37(g)-2)
Other Costs must be disclosed in the order listed in the regulation, with any
additional items listed in alphabetical order in subsequent lines of the applicable
subheading. (§ 1026.37(g)(7))
An addendum to the Loan Estimate cannot be used for additional items on the
Other Costs table. If all of the charges cannot be itemized in the number of lines
provided in a subheading of the Other Costs table, the total of those items that
exceed the number permitted are disclosed with the label “Additional Charges” on
the last line of that subheading. (§ 1026.37(g)(8))
Taxes and Other Government Fees
FIGURE 14:
TAXES AND OTHER GOVERNMENT FEES TABLE OF THE LOAN ESTIMATE
Under Taxes and Other Government Fees, disclose Recording Fees and Other
Taxes first and Transfer Taxes second. (§ 1026.37(g)(1))
Recording Fees and Other Taxes are fees assessed by a government authority to
record and index the loan and title documents as required under State or local law,
together with any charges or fees imposed by a State or local government that are
not Transfer Taxes. (Comment 37(g)(1)-1 and -2) Recording Fees and Other Taxes do
not include fees that are based on the Sale Price of the Property or Loan Amount.
For example, a fee for recording a subordination that is $20, plus $3 for each page
37 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
over three pages, is included as Recording Fees and Other Taxes; but a fee of
$1,250 based on 0.5% of the Loan Amount is included as Transfer Taxes, and not
included as Recording Fees and Other Taxes. (Comment 37(g)(1)-1)
Transfer Taxes are State and local government fees on mortgages and home sales
that are based on the Loan Amount or Sale Price of the Property. The name that
is used under State or local law to refer to these amounts is not determinative
of whether or not they are disclosed as Transfer Taxes on the Loan Estimate.
(Comment 37(g)(1)-3)
Disclose only Transfer Taxes paid by the consumer on the Loan Estimate. Whether
the consumer pays the transfer tax is based on applicable State or local law. For
example:
▪ If a State law indicates a lien can attach to the consumer’s acquired property if
the charge is not paid, the amount is included as part of Transfer Taxes;
▪ If State or local law is unclear or does not specifically attribute the amount to
the seller or consumer, disclose the amount apportioned to the consumer using
common practice in the locality of the property. (Comment 38(g)(1)-4)
Transfer taxes to be paid by the seller are not disclosed on the Loan Estimate as
Transfer Taxes. (Comment 38(g)(1)-5)
The amount of Transfer Taxes disclosed could be modified to the extent the
creditor has knowledge of the apportionment of transfer taxes in the contract
for sale between the consumer and a seller when it issues the Loan Estimate.
(Comment 37(g)-2) When a creditor does not have the contract of sale when it
issues the Loan Estimate, the creditor must use the apportionment of transfer
taxes provided for by State or local law, or common practice when State or local
law is unclear. (Comment 37(g)(1)-4)
Disclose the sum of all transfer taxes paid by the consumer as Transfer Taxes.
(§ 1026.37(g)(1)(ii)) No additional items may be listed or deleted in the Taxes and
Other Government Fees category. (Comment 37(g)(1)-6)
38 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
Prepaids
FIGURE 15:
PREPAIDS TABLE OF THE LOAN ESTIMATE
Prepaids are items to be paid by the consumer in advance of the first scheduled
payment of the loan. (§ 1026.37(g)(2)) Prepaids are:
▪ Homeowner’s Insurance Premium,
▪ Mortgage Insurance Premium,
▪ Prepaid Interest,
▪ Property Taxes, and
▪ A maximum of three additional items.
▪ Each item must include the applicable time period covered by the amount to be
paid by the consumer and the total amount to be paid. (§ 1026.37(g)(2)(i)-(iv))
Initial Escrow Payment at Closing
FIGURE 16:
INITIAL ESCROW PAYMENT AT CLOSING TABLE OF THE LOAN ESTIMATE
Initial Escrow Payment at Closing includes items that the consumer will be expected
to place into a reserve or escrow account at consummation to be applied to recurring
periodic payments. (§ 1026.37(g)(3)) Initial Escrow Payment at Closing includes:
▪ Homeowner’s Insurance,
▪ Mortgage Insurance,
▪ Property Taxes, and
39 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
▪ A maximum of five other items.
Also disclose the amount escrowed per month for each item, the number of months
collected at consummation and the total amount paid. (§ 1026.37(g)(3)(i), (ii), (iii), (v))
Other
FIGURE 17:
OTHER TABLE OF THE LOAN ESTIMATE
Other includes items in connection with the transaction that the consumer is likely
to pay or has contracted with a person other than the creditor or loan originator
to pay at closing and of which the creditor is aware at the time of issuing the Loan
Estimate. (§ 1026.37(g)(4))
Separate insurance, warranty, guarantee or event-coverage products include, for
example:
▪ Owner’s title insurance,
▪ Credit life insurance,
▪ Debt suspension coverage,
▪ Debt cancellation coverage,
▪ Warranties of home appliances and systems, and
▪ Similar products.
These items are disclosed when coverage is written in connection with a mortgage.
These examples would not include additional coverage and endorsements on
insurance otherwise required by the creditor. (Comment 37(g)(4)-3)
Items that disclose any premiums paid for separate insurance, warranty, guarantee,
or event-coverage products not required by the creditor must include the
parenthetical description (optional) at the end of the label. (§ 1026.37(g)(4)(ii))
A maximum of five items can be disclosed as Other. (§ 1026.37(g)(4)(iii))
Describe services related to the issuance of title insurance policies with the word
Title – at the beginning of the item. When the owner’s title insurance premium
40 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
includes a simultaneous issuance premium, the premium is calculated by taking
the full owner’s title insurance premium, adding the simultaneous issuance
premium for the lender’s coverage (if any), and then deducting the full premium for
lender’s coverage. (Comment 37(g)(4)-2)
When the creditor is aware of those items, Other includes for example:
▪ Commissions of real estate brokers or agents,
▪ Additional payments to the seller to purchase personal property pursuant to the
contract of sale,
▪ Homeowner’s association and condominium charges associated with the
transfer of ownership, and
▪ Fees for inspections not required by the creditor but paid by the consumer
pursuant to the contract of sale. (Comment 37(g)(4)-4)
Total Closing Costs
FIGURE 18:
TOTAL CLOSING COSTS TABLE OF THE LOAN ESTIMATE
Total Closing Costs is the sum of Total Loan Costs (shown in Figure 8), Total Other
Costs, and Lender Credits. (§ 1026.37(g)(6))
Lender Credits is the amount of any payments from the creditor to the consumer
that do not pay for a particular fee on the Loan Estimate and is disclosed as a
negative number. (Comment 37(g)(6)(ii)-1)
For loans where all or a portion of closing costs are offset by a credit or rebate
provided by the creditor (sometimes referred to as “no cost” loans), disclose such
credit or rebate as Lender Credits. The creditor should ensure that Lender Credits
is sufficient to cover the estimated items the creditor represented to the consumer
as not being paid by the consumer at consummation, regardless of whether such
representations pertained to specific items. (Comment 37(g)(6)(ii)-2)
41 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
2�3�3
FIGURE 19:
Calculating Cash to Close
CALCULATING CASH TO CLOSE TABLE OF THE LOAN ESTIMATE
Total Closing Costs
Total Closing Costs is the same amount disclosed as Total Closing Costs in the
Other Costs table (see section 2.3.2 above). The amount is disclosed as a positive
number. (§ 1026.37(h)(1)(i))
Closing Costs Financed (Paid from Your Loan Amount)
Closing Costs Financed (Paid from Your Loan Amount) is calculated by
subtracting the estimated total amount of payments to third parties not otherwise
disclosed in the Loan Costs (see section 2.3.1 above) and Other Costs (see section
2.3.2 above) tables from the Loan Amount disclosed on page 1 of the Loan
Estimate (see section 2.2.2 above).
▪ If the result of the calculation is a positive number, Closing Costs Financed (Paid
from Your Loan Amount) is that amount, disclosed as a negative number, but
only to the extent that it does not exceed the amount of Total Closing Costs.
▪ If the result of the calculation is zero or negative, then Closing Costs Financed
(paid from Your Loan Amount) is $0. (Comment 37(h)(1)(ii)-1)
Down Payment/Funds from Borrower
▪ In a Purchase transaction, Down Payment/Funds from Borrower is the
difference between the purchase price of the property and the principal amount
of the loan, disclosed as a positive number. (§ 1026.37(h)(1)(iii)(A)) However,
when the loan amount exceeds the purchase price of the property, disclose $0
as Down Payment/Funds from Borrower. (Comment 37(h)(1)(iii)-1)
42 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
▪ In all other transactions, subtract the principal amount of credit extended
(excluding any amount disclosed as Closing Costs Financed (Paid from Your
Loan Amount)) from the total amount of all existing debt being satisfied in the
transaction.
ú When this calculation yields an amount that is positive, Down Payment/
Funds from Borrower is that amount.
ú If the calculation yields a result that is negative or $0, Down Payment/
Funds from Borrower is $0. (§ 1026.37(h)(1) (iii)(B))
Deposit
▪ In a Purchase transaction, Deposit is the amount, disclosed as a negative
number, that is paid to the seller or held in trust or escrow by an attorney
or other party under the terms of the contract for sale of the property.
(§ 1026.37(h)(1)(iv)(A))
▪ In all other transactions, Deposit is $0. (§ 1026.37(h)(1)(iv)(B))
Funds for Borrower
▪ In a Purchase transaction, Funds for Borrower is $0. (Comment 37(h)(1)(v)-1)
▪ In all other transactions, subtract the principal amount of debt extended (excluding
any amount disclosed as Closing Costs Financed (Paid from Your Loan Amount))
from the total amount of all existing debt being satisfied in the transaction.
ú When this calculation yields an amount that is negative, then Funds for
Borrower is that amount.
ú If the calculation yields an amount that is positive or $0, then Funds for
Borrower is $0. (§ 1026.37(h)(1)(v))
Seller Credits
Seller Credits is the total amount that the seller will pay for items included in the
Loan Costs and Other Costs tables, to the extent known, disclosed as a negative
number. (§ 1026.37(h)(1)(vi))
43 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
Adjustments and Other Credits
Adjustments and Other Credits is the total amount of all items in the Loan Costs
and Other Costs tables that are paid by persons other than the loan originator,
creditor, consumer, or seller, together with any other amounts that are required
to be paid by the consumer at closing pursuant to the contract of sale (if any),
disclosed as a negative number. (§ 1026.37(h)(1)(vii))
Examples of items that are paid by persons other than the loan originator, creditor,
consumer, or seller include:
▪ Gifts from family members, and
▪ Credits from a developer or home builder to be applied to items in the Loan
Costs and Other Costs table. (Comment 37(h)(1)(vii)-1 and -2)
Adjustments and Other Credits includes funds provided to the consumer from
the proceeds of subordinate financing, local or State housing assistance grants, or
other similar sources. (Comment 37(h)(1)(vii)-5)
Examples of amounts to be paid by the consumer at closing pursuant to the
contract of sale include:
▪ Charges for personal property to be acquired by the consumer,
▪ Prorations for property taxes, and
▪ Prorations for homeowner’s association dues.
Adjustment and Other Credits is reduced by the amount of any such additional
charges. (Comment 38(h)(1)(vii)-6)
Estimated Cash to Close
Estimated Cash to Close is calculated as the sum of the seven other amounts
disclosed in the Estimated Cash to Close table. (§ 1026.37(h)(1)(viii))
44 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
2�3�4 Alternative Calculating Cash to Close
table for transactions without a seller
FIGURE 20: ALTERNATIVE CALCULATING CASH TO CLOSE TABLE OF THE LOAN
ESTIMATE
An optional Alternative Calculating Cash to Close table can be disclosed for
transactions without a seller. This Alternative Calculating Cash to Close table
would be used in place of the table in Figure 19. (§ 1026.37(h)(2)) A creditor that
uses the optional Alternative Calculating Cash to Close table must also use the
alternative disclosure provisions of the Alternative Costs at Closing table on Loan
Estimate page 1. (see section 2.2.4 above; Comment 37(h)(2)-1)
Loan Amount
The amount disclosed as Loan Amount is the same amount disclosed as Loan
Amount on Loan Estimate page 1. (see section 2.2.2 above; § 1026.37(h)(2)(i))
Total Closing Costs
Total Closing Costs is the same amount as Total Closing Costs in the Other Costs
table, disclosed as a negative number. (§ 1026.37(h)(2)(ii))
Estimated Payoffs and Payments
Estimated Payoffs and Payments is the total amount to be paid to third parties not
otherwise disclosed as items in the Loan Costs or Other Costs tables, disclosed as
a negative number. (§ 1026.37(h)(2)(iii))
Examples of the Payoffs and Payments to be made to third parties not otherwise
disclosed in the Loan Costs or Other Costs tables can include:
▪ Payoffs of existing liens secured by the property such as mortgages, deeds of
45 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
trust, judgments that have attached to the property,
▪ Mechanics’ and materialmans’ liens,
▪ Local, State, and Federal tax liens,
▪ Payments of unsecured outstanding debts of the consumer, and
▪ Payments to other third parties for outstanding debts of the consumer
as required to be paid as a condition for the extension of credit.
(Comment 37(h)(2)(iii)-1)
Estimated Cash to Close
The amount for the Estimated Cash to Close is the sum total of the amounts
disclosed as Loan Amount, Total Closing Costs, and Payoffs and Payments.
(§ 1026.37(h)(2)(iv)) Check boxes are used to disclose whether the Estimated
Cash to Close is either due from the consumer or will be paid to the consumer at
consummation. (Comment 37(h)(2)(iv)-1)
Estimated Closing Costs Financed
Closing Costs Financed is the sum of Loan Amount and Payoffs and Payments,
but only to the extent the amount is greater than zero and less than or equal to the
sum of Total Closing Costs. (§ 1026.37(h)(2)(v))
For example:
▪ If the Loan Amount is $100,000, the Payoffs and Payments is -$80,000, and
the Total Closing Costs is $10,000; then the Closing Costs Financed would be
$10,000.
▪ If the Loan Amount is $100,000, the Payoff and Payments is -$95,000, and
the Total Closing Costs is $10,000; then the Closing Costs Financed would be
$5,000.
▪ If the Loan Amount is $100,000, the Payoffs and Payments is -$110,000 and the
Total Closing Costs is $10,000; then the Closing Costs Financed would be $0.
46 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
2�3�5
FIGURE 21:
Adustable Payment (AP) Table
ADJUSTABLE PAYMENT (AP) TABLE OF THE LOAN ESTIMATE
The Adjustable Payment (AP) Table is disclosed when the periodic principal and
interest payment may change after consummation, but not because of a change
to the interest rate, or the loan is considered to be a Seasonal Payment product.
(§ 1026.37(i)) If the loan does not contain these features, the AP Table is not
disclosed. (Comment 37(i)-1)
The AP Table includes the following information (§ 1026.37(i)):
▪ Whether there are Interest Only Payments, and, if so, the period during which
the interest only payment would apply (§ 1026.37(i)(1));
▪ Whether the amount of any periodic payment can be selected by the consumer
as an Optional Payment and, if so, the period during which the consumer can
select optional payments (§ 1026.37(i)(2));
▪ Whether the loan is a Step Payment product and, if so, the period during which
the regular periodic payments are scheduled to increase (§ 1026.37(i)(3));
▪ Whether the loan is a Seasonal Payment product, and, if so, the period during
which the periodic payments are not scheduled (§ 1026.37(i)(4));
▪ A subheading of Monthly Principal and Interest Payments (§ 1026.37(i)(5)), that
also lists:
ú As First Change/Amount, the number of the payment that may change,
counting from the first periodic payment due after consummation, and
the amount or range of the periodic principal and interest payment for
such payment (§ 1026.37(i)(5)(i));
47 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
ú The frequency of Subsequent Changes to the periodic payment
(§ 1026.37(i)(5)(ii)); and
ú The Maximum Payment that may be paid during the term of the loan with
the number of the first periodic principal and interest payment that can
reach such Maximum Payment amount. (§ 1026.37(i)(5)(iii))
First Change/Amount
If the exact payment number of the first payment adjustment is not known at the
time of the Loan Estimate, the earliest possible payment that may change must be
disclosed. (Comment 37(i)(5)-2)
Monthly Principal and Interest Payments
The label “Monthly Principal and Interest Payments” can be changed to
reflect a payment schedule that is not monthly, such as Biweekly or Annual.
(Comment 37(i)(5)-1)
Disclose any scheduled periodic payment that only covers some or all of the
interest that is due and not any principal as Monthly Principal and Interest
Payments, even though the AP Table refers to Monthly Principal and Interest
Payments. (Comment 37(i)(5)-5)
2�3�6
Adjustable Interest Rate (AIR) Table
FIGURE 22: ADJUSTABLE INTEREST RATE (AIR) TABLE OF THE LOAN ESTIMATE
The Adjustable Interest Rate (AIR) Table is disclosed when the loan’s interest rate
may increase after consummation. (§ 1026.37(j)) If the loan’s interest rate will not
increase after consummation, the AIR Table is not disclosed. (Comment 37(j)-1)
48 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
The AIR Table includes the following information (§ 1026.37(j)):
▪ As Index + Margin, the index upon which adjustments to the interest rate will be
based and the margin that is added to the index to determine the interest rate
(§ 1026.37(j)(1));
▪ For Step Rate products, the maximum amount of any adjustments to the interest
rate that are scheduled and pre-determined (§ 1026.37(j)(2));
▪ The Initial Interest Rate at consummation (§ 1026.37(j)(3));
▪ The Minimum/Maximum Interest Rate for the loan, after any introductory
period expires (§ 1026.37(j)(4));
▪ As Change Frequency (§ 1026.37(j)(5)):
ú For First Change, list the month when the first interest rate change may
occur after consummation (§ 1026.37(j)(5)(i)); and
ú As Subsequent Changes, the frequency of interest rate adjustments after
the initial adjustment (§ 1026.37(j)(5)(ii)); and
▪ As Limits on Interest Rate Changes (§ 1026.37(j)(6)):
ú As First Change, the maximum possible change for the first adjustment of
the interest rate after consummation (§ 1026.37(j)(6)(i)); and
ú As Subsequent Changes, the maximum possible change for subsequent
adjustments of the interest rate. (§ 1026.37(j)(6)(ii))
Index and Margin
The index must be described such that a consumer can reasonably identify it. For
example, LIBOR may be used instead of the London Interbank Offered Rate. The
margin should be disclosed as a percentage. For example, if the interest rate is
calculated by adding 4.25 to LIBOR, the margin should be disclosed as 4.25%.
(Comment 37(j)(1)-1)
Maximum/Minimum Interest Rate
The maximum interest rate that applies to the loan under applicable law, such as
State usury law, must be disclosed if the loan does not provide for a maximum
interest rate. (Comment 37(j)(4)-2)
The minimum interest rate that applies to the loan under applicable law must be
disclosed if the loan does not provide for a minimum interest rate. However, if
49 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
applicable law does not set a minimum interest rate, disclose the amount of the
margin as the minimum interest rate. (Comment 37(j)(4)-1)
Change Frequency
Typically, the first change month for the interest rate is scheduled in the terms of
the loan, but if the exact month is not known at the time creditor provides the Loan
Estimate, the earliest possible month for the first change to the interest rate of the
loan must be disclosed based on the best information available to the creditor at
the time the Loan Estimate is disclosed. (Comment 37(j)(5)-1)
Limits on Interest Rate Changes
The greatest limit on changes in the interest rate must be disclosed when more
than one limit applies to changes in the interest rate. For example, if the initial
interest rate adjustment is capped at 2%, the second adjustment is capped at 2.5%,
and all subsequent adjustments are capped at 3%, 3% is disclosed as Subsequent
Changes. (Comment 37(j)(6)-1)
50 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
2�4 Loan Estimate (page 3)
section 2.4.1
section 2.4.2
section 2.4.3
section 2.4.4
FIGURE 23: LOAN ESTIMATE (PAGE 3)
51 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
Contact information, a Comparisons table, an Other Considerations table, and, if
desired, a place for the consumer to sign to acknowledge receipt of the Loan Estimate
are disclosed on page 3 of the Loan Estimate.
2�4�1
Contact Information
FIGURE 24: CONTACT INFORMATION TABLE OF THE LOAN ESTIMATE
Disclose the Name and NMLS/___License ID number for the creditor and mortgage
broker, if any, and the individual loan officer of both. Also, disclose the Email and/or
Phone number of the individual loan officer. The person identified as the individual
loan officer must be the primary contact for the consumer. (§ 1026.37(k))
2�4�2
Comparisons
FIGURE 25: COMPARISONS TABLE OF THE LOAN ESTIMATE
The Comparisons table discloses information related to the costs of the loan In Five
Years, the Annual Percentage Rate (APR), and the Total Interest Percentage (TIP).
52 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
In 5 Years
In 5 Years includes the following information:
▪ The total amount the consumer will have paid in principal, interest, mortgage
insurance, and loan costs paid through the end of the 60th month after the due
date of the first periodic payment; and
▪ The amount of principal paid through the end of the 60th month after the due
date of the first periodic payment. (§ 1026.37(l)(1))
Annual Percentage Rate (APR)
Disclose the APR, together with a brief descriptive statement, in the Comparisons
table on page 3. For information on how to calculate the APR, see § 1026.22 and
appendix J to Regulation Z. (§ 1026.37(l)(2))
Total Interest Percentage (TIP)
The TIP is the total amount of interest that the consumer will pay over the loan
term, expressed as a percentage of the loan amount. (§ 1026.37(l)(3))
For example, if the Loan Amount is $100,000 and the total amount of interest that
the consumer will pay over the Loan Term is $50,000, then the TIP is 50%.
2�4�3
Other Considerations
FIGURE 26: OTHER CONSIDERATIONS TABLE
53 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
Other Considerations includes the following information:
▪ Appraisal;
▪ As Assumption, whether the subsequent purchaser of the property can assume
the loan on its original terms;
▪ At the option of the creditor, a statement that Homeowner’s Insurance is
required and that the consumer may choose the provider;
▪ A statement detailing any amount that may be imposed for a Late Payment;
▪ A statement about the nature of a Refinance of the loan in the future;
▪ A statement whether the creditor intends to service the loan or transfer it to
another servicer; and
▪ For Refinance transactions, a statement relating to State law protections against
Liability After Foreclosure. (§ 1026.37(m))
▪ At the option of the creditor, for transactions involving new construction, where
the creditor reasonably expects that settlement will occur 60 days or more
after the provision of the loan estimate, a clear and conspicuous statement that
the creditor may issue a revised disclosure any time prior to 60 days before
consummation.
Appraisal
A statement concerning the Appraisal must be provided for:
▪ Higher-priced Mortgage Loans, and
▪ Loans covered by the Equal Credit
Opportunity Act. (§ 1026.37(m)(1))
If the loan is a Higher-priced Mortgage
Loan, but is not covered by the Equal Credit
Opportunity Act, the word “promptly” may be
removed from the language provided on the
model form. (Comment 37(m)(1)-1)
A Higher-priced Mortgage
Loan is defined at
12 CFR 1026.35.
Coverage of the Equal
Credit Opportunity
Act is discussed in
Regulation B, 12 CFR
Part 1002, Supplement
I – Official Interpretations,
Comment 1(a)-1.
Late Payment
An increase in the interest rate triggered by a Late Payment is a charge for late
payment. The following are not charges for Late Payment:
▪ The right of acceleration;
54 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
▪ Fees imposed for actual collection costs;
▪ Referral and extension charges; or
▪ Interest charged at the contract rate after the payment due date.
(Comment 37(m)(4)-1)
2�4�4
FIGURE 27:
Confirm Receipt
CONFIRM RECEIPT TABLE OF THE LOAN ESTIMATE
The consumer is not required to sign the Loan Estimate. The creditor may add a
signature statement and have the consumer sign page 3 of the Loan Estimate in
order to Confirm Receipt of the Loan Estimate by the consumer. If used by the
creditor, the signature statement must contain the exact language from the model
form. (§ 1026.37(n)(1))
If the Confirm Receipt table is not used by a creditor, a statement about Loan
Acceptance must be included at the end of the Other Consideration table that
states, “You do not have to accept this loan because you have received this form or
signed a loan application.” (§ 1026.37(n)(2))
55 TILA-RESPA INTEGRATED DISCLOSURE | LOAN ESTIMATE
3� Closing Disclosure
3�1 General Requirements
3�1�1
Issuance and Delivery
A Closing Disclosure must be provided to the consumer at least three business
days prior to consummation. (see section 3.1.5 for more information)
3�1�2
Revised Closing Disclosure
Prior to consummation, an additional three-business-day waiting period applies
when there are changes to the Closing Disclosure that result in an increase to the
APR that becomes inaccurate, the addition of a Prepayment Penalty, or the change
of a loan product. (§ 1026.19(f)(2)(ii); Comment 19(f)(2)(ii)-1)
For other changes prior to consummation, provide the updated information in a
revised Closing Disclosure no later than consummation to the consumer. Upon the
consumer’s request, by the business day before consummation, a creditor must
permit the consumer to inspect the Closing Disclosure, although the creditor may
omit items related only to the seller’s transaction. (§ 1026.19(f)(2)(i))
In addition, provide a corrected Closing Disclosure if an event related to the
settlement occurs during the 30-calendar-day period after consummation that
causes the Closing Disclosure to become inaccurate and results in a change
to an amount paid by the consumer from what was previously disclosed.
(§ 1026.19(f)(2)(iii); Comment 19(f)(2)(iii)-1) Deliver or place in the mail the
revised Closing Disclosure no later than 30 calendar days after receiving
information sufficient to establish changes to the amount paid by the consumer.
(§ 1026.19(f)(2)(iii))
56 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
3�1�3
Use of Compliance Guide
Please see Compliance Guide, sections 11, 12,
This Guide uses references
and 13, for additional information on details of
to the legal obligation,
these requirements. The Compliance Guide also
which includes the
discusses the good faith disclosure of settlement
promissory note plus any
costs, limitations on changes to those amounts
other agreements between
the creditor and consumer
at consummation, and other information
concerning the extension of
concerning the process requirements related
credit.
to the Closing Disclosure. The information
that follows discusses how to complete the
Closing Disclosure. Samples of completed Closing Disclosures can be found at
consumerfinance.gov/regulatory-implementation/tila-respa/.
3�1�4
Rounding
Dollar amounts must be rounded to the nearest whole dollar where noted.
(§ 1026.38(t)(4)(i)) If an amount must be rounded but is composed of other
amounts that are not rounded, use the unrounded amounts in calculating the total
and then round the final sum. Conversely, if an amount is required to be rounded
and is composed of rounded amounts, use the rounded amounts in calculating the
total. (Comment 38(t)(4)-2)
Percentage amounts should not be rounded and are shown up to two or three
decimals, as needed, except where noted in the regulation. If a percentage amount
is a whole number, show the whole number only with no decimals. (§ 1026.38(t)(4)(ii))
3�1�5
Consummation
Consummation is not the same thing as closing or settlement. Consummation
occurs when the consumer becomes contractually obligated to the creditor on the
loan, not, for example, when the consumer becomes contractually obligated to a
seller on a real estate transaction. (§ 1026.2(a)(13))
The point in time when a consumer becomes contractually obligated
to the creditor on the loan depends on applicable State law.
(§ 1026.2(a)(13); Comment 2(a)(13)-1) Creditors and settlement agents should verify
the applicable State laws to determine when consummation will occur, and make
sure delivery of the Closing Disclosure occurs at least three business days before
this event.
57 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
3�2 Closing Disclosure (page 1)
section 3.2.1
section 3.2.2
section 3.2.3
section 3.2.4
FIGURE 28: CLOSING DISCLOSURE (PAGE 1)
58 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
General information, the Loan Terms table, the Projected Payments table, and the
Costs at Closing table are disclosed on the first page of the Closing Disclosure.
(§ 1026.38(a), (b), (c), (d))
3�2�1
General Information
FIGURE 29: CLOSING INFORMATION TABLE OF THE CLOSING DISCLOSURE
At the top of page 1 of the Closing Disclosure, disclose Closing Information,
Transaction Information, and Loan Information. (§ 1026.38(a))
Closing Information
For Closing Information, disclose the following information:
▪ Date Issued is the date the Closing Disclosure is delivered to the consumer,
▪ The Closing Date,
▪ The Disbursement Date,
▪ The name of the Settlement Agent,
▪ As File #, the settlement agent’s file number,
▪ The Property address or location, and
▪ For the property securing the loan:
ú Sale Price,
ú Appraised Prop. Value, or
ú Estimated Prop. Value. (§ 1026.38(a)(3))
59 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
The Appraised Prop. Value of the property securing the loan is disclosed for
transactions without a seller. (§ 1026.38(a)(3)(vii)(B)) The Estimated Prop. Value
of the property securing the loan is disclosed if the creditor has not obtained an
appraisal for transactions without a seller. (Comment 38(a)(3)(vii)-1)
Transaction Information
FIGURE 30: TRANSACTION INFORMATION TABLE OF THE CLOSING DISCLOSURE
For Transaction Information, disclose the name of the consumer as Borrower, the
name of the seller as Seller, and the name of the creditor as Lender. (§ 1026.38(a)(4))
The name and address of each consumer and seller in the transaction must be
disclosed. If there is not enough space to show the name and address of all
consumers and sellers in the transaction, an additional page may be used and
appended to the end of the Closing Disclosure. (Comment 38(a)(4)-1)
Loan Information
FIGURE 31:
LOAN INFORMATION TABLE OF THE CLOSING DISCLOSURE
60 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
For Loan Information, disclose the Loan Term, Purpose, Product, Loan Type,
the creditor’s loan identification number as Loan ID #, and mortgage insurance
case number, if required by the creditor, as MIC # under the Loan Information
subheading. (§ 1026.38(a)(5))
The information disclosed for Loan Term, Purpose, Product, Loan Type, and Loan
ID # are determined by the same definitions for those items on the Loan Estimate.
(see section 2.2.1 above) These items should be updated to reflect the terms of the
legal obligation at consummation. (Comment 38(a)(5)-1)
3�2�2
Loan Terms
Loan Amount
Interest Rate
Monthly Principal & Interest
See Projected Payments below for your
Estimated Total Monthly Payment
Does the loan have these features?
Prepayment Penalty
Balloon Payment
FIGURE 32: LOAN TERMS TABLE OF THE CLOSING DISCLOSURE
The Loan Terms table on the Closing Disclosure discloses the same information
required to be disclosed on the Loan Estimate (see section 2.2.2 above), updated
to reflect the terms of the legal obligation at consummation. (§ 1026.38(b))
61 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
3�2�3
Projected Payments
Principal & Interest
Mortgage Insurance
Estimated Escrow
Property Taxes
Homeowner’s Insurance
Other:
See Escrow Account on page 4 for details. You must pay for other property
costs separately.
FIGURE 33: LOAN TERMS TABLE OF THE CLOSING DISCLOSURE
The Projected Payments table on the Closing Disclosure discloses the same
information required to be disclosed on the Projected Payments table disclosed
on the Loan Estimate (see section 2.2.3 above), updated to reflect the terms of the
legal obligation at consummation. (§ 1026.38(c); Comment 38(c)-1)
3�2�4
Costs at Closing
Closing Costs
Includes
in Loan Costs +
in Lender Credits. See page 2 for details.
Cash to Close
Includes Closing Costs. See Calculating Cash to Close on page 3 for details.
in Other Costs –
PAGE 1 OF 5 LOAN ID #
FIGURE 34: COSTS AT CLOSING TABLE OF THE CLOSING DISCLOSURE
The Costs at Closing table discloses:
▪ The total amount disclosed as Total Closing Costs in the Other Costs table
disclosed on page 2 of the Closing Disclosure. Total Closing Costs are also
62 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
itemized to show the Total Loan Costs, the Total Other Costs, and Lender
Credits from the Total Closing Costs subheading disclosed on page 2 of the
Closing Disclosure (§ 1026.38(d)(1)(i)), and
▪ The estimated amount of cash the consumer will pay at, or receive from, closing
as Cash to Close. This amount is the same as the Cash to Close calculated
in the Calculating Cash to Close table on page 3 of the Closing Disclosure.
(§ 1026.37(d)(1)(ii))
Alternative Costs at Closing
FIGURE 35: ALTERNATIVE COSTS AT CLOSING TABLE OF THE CLOSING DISCLOSURE
Disclose the Alternative Costs at Closing table for transactions without a seller
where the Alternative Estimated Costs at Closing table was disclosed on the
Loan Estimate. (see section 2.2.4 above; § 1026.38(d)(2)) Check boxes are used in
order to indicate whether the amount of cash is due from or paid to the consumer
at consummation. (Comment 38(d)(2)-2) If the Alternative Costs at Closing table
is used, then the Alternative Calculating Cash to Close on page 3 of the Closing
Disclosure must also be used. (Comment 38(d)(2)-1)
63 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
3�3 Closing Disclosure (page 2)
section 3.3.1
section 3.3.2
FIGURE 36: CLOSING DISCLOSURE (PAGE 2)
64 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
The number of items in the Loan Costs and Other Costs tables can be expanded
and deleted to ensure that the Loan Costs and Other Costs tables fit onto page 2
of the Closing Disclosure. (§ 1026.38(t)(5)(iv)(A)) However, items that are required
to be disclosed, even if they are not needed (such as Points in the Origination
Charges subheading), cannot be deleted. (Comment 38(t)(5)(iv)-1)
The amounts paid by the consumer, seller and others for each item are disclosed.
For items paid by the consumer or seller, the amount that is paid at or before
closing is also entered into the applicable columns. (§ 1026.38(f)) To the extent that
an individual item is paid by different parties to the transaction and both at and
before closing, the amounts associated with an item can be entered in multiple
columns. (§ 1026.38(f))
The Loan Costs and Other Costs tables can be disclosed on two separate pages
of the Closing Disclosure. (§ 1026.38(t)(5)(iv)(B)) When used, these pages are
numbered page 2a and 2b. (Comment 38(t)(5)(iv)-3) For an example of this
permissible change to the Closing Disclosure, see form H-25(H) of appendix H to
Regulation Z.
3�3�1
FIGURE 37:
Loan Costs
LOAN COSTS TABLE OF THE CLOSING DISCLOSURE
65 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
The items to be disclosed in the Loan Costs table should generally be the same
as they were disclosed on the Loan Estimate (see section 2.3.1 above), updated
to reflect the terms of the legal obligation at consummation, except as specifically
discussed below. (§ 1026.38(f))
Origination Charges - Loan Originator Compensation
Loan originator compensation is disclosed as Origination Charges, even
though loan originator compensation is not disclosed on the Loan Estimate.
Compensation from the consumer to a third-party loan originator is designated
as Borrower-Paid At Closing or Before Closing on the Closing Disclosure.
(§ 1026.38(f)(1); Comment 38(f)(1)-2)
Compensation from the creditor to a third-party loan originator is designated as
Paid by Others on the Closing Disclosure. (Comment 38(f)(1)-2) A designation
of (L) can be listed with the amount to indicate that the creditor pays the
compensation at consummation. The amount of compensation from the
creditor to the third-party loan originator is the same as the amount of thirdparty compensation included in points and fees for purposes of determining
the consumer’s ability to pay the loan. (Comment 38(f)(1)-3) Compensation to
individual loan originators is not calculated or disclosed on the Closing Disclosure.
(Comment 38(f)(1)-3)
Services the Consumer Did and Did Not Shop For
Items that the consumer could have shopped for, but did not, are disclosed in the
Services Borrower Did Not Shop For subheading, regardless of where the item
was disclosed on the Loan Estimate. (§ 1026.38(f)(2))
When a consumer chooses a provider that was on the Written List of Providers
for a service, that service is listed as Services Borrower Did Not Shop For in the
Closing Disclosure Loan Costs table. (§ 1026.38(f)(2); Comment 38(f)(3)-1) Items
disclosed as Services Borrower Did Shop For and Services Borrower Did Not
Shop For are re-alphabetized when an item is added to or removed from the
Closing Disclosure, when compared to the Loan Estimate.
Total Loan Costs
The amounts that are designated as Borrower-Paid At or Before Closing are
subtotaled as Total Loan Costs (Borrower-Paid). (§ 1026.38(f)(5)) The amounts
that are designated Seller-Paid At or Before Closing and Paid by Others are not
subtotaled as Total Loan Costs (Borrower-Paid). (Comment 38(f)(5)-1)
66 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
3�3�2
Other Costs
FIGURE 38: OTHER COSTS TABLE OF THE CLOSING DISCLOSURE
The items to be disclosed in the Other Costs table should be disclosed as they
would be disclosed on the Loan Estimate (see section 2.3.2 above), updated
to reflect the terms of the legal obligation and real estate transaction at
consummation, except as specifically discussed below. (§ 1026.38(g))
Taxes and Other Government Fees
An itemization of Transfer Taxes paid by the consumer and the seller is disclosed
under the heading Taxes and Other Government Fees, instead of the sum total of
Transfer Taxes to be paid by the consumer. (§ 1026.38(g)(1))
Prepaids
Prepaids are items to be paid by the consumer in advance of the first scheduled
payment of the loan. (§ 1026.38(g)(2)) Prepaids are:
▪ Homeowner’s Insurance Premium,
67 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
▪ Mortgage Insurance Premium,
▪ Prepaid Interest,
▪ Property Taxes, and
▪ A maximum of three additional items.
Each item must include the applicable time period covered by the amount to be
paid by the consumer and the total amount to be paid.
Initial Escrow Payment at Closing
Property Taxes paid during different time periods can be disclosed as separate
items. (§ 1026.38(g)(3)) For example, general property taxes assessed for January 1
to December 31 and property taxes to fund schools for November 1 to October 31
can be disclosed as separate items. (Comment 38(g)(3)-3)
The last item disclosed in the Initial Escrow Payment at Closing is the Aggregate
Adjustment. (§ 1026.38(g)(3)) The Aggregate Adjustment is calculated under
Regulation X. (§ 1024.17(d)(2); Comment 38(g)(3)-2)
Other
Items are disclosed as Other to reflect costs incurred by the consumer
or seller that were not required to be disclosed on the Loan Estimate.
(§ 1026.38(g)(4); Comment 38(g)(4)-1) These costs include:
▪ Real estate brokerage fees,
▪ Homeowner or condominium association fees paid at consummation,
▪ Home warranties,
▪ Inspection fees, and
▪ Other fees paid at closing that are not required by the creditor or otherwise
required to be disclosed elsewhere on the Closing Disclosure.
The amount of an earnest money deposit does not affect the amount of real
estate commissions paid by the consumer or seller on the Closing Disclosure,
even if the earnest money deposit is held by the real estate brokerage.
(Comment 38(g)(4)-1 and -4)
68 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
Total Other Costs and Total Closing Costs
The total of all closing costs paid by the consumer, reduced by the Lender Credit,
is disclosed as Total Closing Costs (Borrower-Paid). (§ 1026.38(h)(1)) The total
of items designated as Borrower-Paid At or Before Closing, Seller-Paid At or
Before Closing, and Paid by Others are disclosed as Closing Cost Subtotals.
(§ 1026. 38(h)(2)) Lastly, the total amount of Lender Credits, if any, are disclosed
and designated as Borrower-Paid At Closing. (§ 1026.38(h)(3))
Lender Credits
All general lender credits, regardless of their reason or source, are included as
Lender Credits. (Comment 38(h)(3)-1) However, if the lender credit is attributable
to a charge listed on Closing Disclosure page 2, then the amount should be
listed with the item and designated as Paid By Others. (Comment 38(h)(3)-1) A
designation of (L) can be listed with the amount to indicate that the creditor pays
the item at consummation.
The creditor should include the amount of any offset to resolve an excess charge
by the creditor as Lender Credits. (§ 1026.38(h)(3)) A statement that such an
amount is paid by the creditor to offset an excess charge, with funds other than
closing funds, is also included as part of Lender Credits. (Comment 38(h)(3)-2; see
form H-25(F) of appendix H to Regulation Z for an example of this statement)
69 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
3�4 Closing Disclosure (page 3)
section 3.4.1
sections 3.4.3,
3.4.4, and 3.4.5
FIGURE 39: CLOSING DISCLOSURE (PAGE 3)
70 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
On page 3 of the Closing Disclosure, the Calculating Cash to Close table and
Summaries of Transaction table are disclosed. For transactions without a seller, a
Payoffs and Payments table may be substituted for the Summaries of Transactions
table and placed before the Alternative Calculating Cash to Close table. (See
Figure 40; form H-25(J) of appendix H to Regulation Z)
section 3.4.2
FIGURE 40: ALTERNATIVE CLOSING DISCLOSURE (PAGE 3)
71 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
3�4�1
FIGURE 41:
Calculating Cash to Close
CALCULATING CASH TO CLOSE TABLE OF THE CLOSING DISCLOSURE
The Calculating Cash to Close table has nine items listed in the table:
▪ Total Closing Costs,
▪ Closing Costs Paid Before Closing,
▪ Closing Costs Financed (Paid from your Loan Amount),
▪ Down Payment/Funds from Borrower,
▪ Deposit,
▪ Funds for Borrower,
▪ Seller Credits,
▪ Adjustments and Other Credits, and
▪ Cash to Close.
The table has three columns to disclose the amount for each item as it was
disclosed on the Loan Estimate (see section 2.3.3 above), the Final amount for the
item, and an answer to the question Did this change? (§ 1026.38(i))
Generally, the amount disclosed in the Loan Estimate column is the same
as the amount disclosed on the Loan Estimate or a revised Loan Estimate.
(§ 1026.38(i)(1)(i), (3)(i), (4)(i), (5)(i), (6)(i), (7)(i), (8)(i), (9)(i)) The amounts disclosed
in the Loan Estimate column are rounded to the nearest dollar in order to match
the corresponding amount disclosed on the Loan Estimate’s Calculating Cash to
Close table. (Comment 38(i)-2)
72 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
The amounts in the Final column are calculated using the same methods that were
used for the Calculating Cash to Close table on the Loan Estimate, except that the
amounts used to determine the amounts are the amounts disclosed on the Closing
Disclosure or determined at consummation. (Comment 38(i)-2)
When the answer to the question Did this change? is Yes, indicate where the
consumer can find the amounts that have changed on the Loan Estimate. For
example, if the Seller Credit amount changed, the creditor can indicate that
the consumer should “See Seller Credits in Section L.” (Comment 38(i)-3) Other
examples of language for these items are found in example form H-25(B) in
appendix H of Regulation Z.
Total Closing Costs
In the Final column, Total Closing Costs is the same amount as the amount
disclosed as Total Closing Costs (Borrower-Paid) on page 2 of the Closing
Disclosure. (see section 3.2.4 above; § 1026.38(i)(1)(ii)) When the amount in the
Final column is different from the amount in the Loan Estimate column, indicate
that the consumer should see the Total Loan Costs or Total Other Costs tables, as
applicable, on page 2 of the Closing Disclosure. (§ 1026.38(i)(1)(iii)(A)(2))
Increases in Total Closing Costs That Exceed the Legal Limits
When the increase in Total Closing Costs exceeds the legal limits, disclose a
statement that an increase in closing costs exceeds the legal limits by the dollar
amount of the excess in the Did this change? column. (§ 1026.38(i)(1)(iii)(A)(3)) A
statement directing the consumer to the Lender Credit on page 2 must also be
included if a credit to the consumer at closing for the excess amount is provided by
the creditor. (Comment 38(i)(1)(iii)(A)-3)
Closing Costs Paid Before Closing
The amount disclosed in the Loan Estimate column for the Closing Costs Paid
Before Closing item is $0. (§ 1026.38(i)(2)(i)) The Final column should disclose the
same amount designated as Borrower-Paid Before Closing in the Closing Costs
Subtotals of the Other Costs table on page 2 of the Closing Disclosure.
73 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
3�4�2 Alternative Calculating Cash to Close
Table For Transaction Without a Seller
FIGURE 42: ALTERNATIVE CALCULATING CASH TO CLOSE TABLE OF THE CLOSING
DISCLOSURE
Disclose an Alternative Calculating Cash to Close table for transactions without a
seller when the Alternative Calculating Cash to Close table was used on the Loan
Estimate.
The Alternative Calculating Cash to Close table has five items listed in the table:
▪ Loan Amount,
▪ Total Closing Costs,
▪ Closing Costs Paid Before Closing,
▪ Total Payoffs and Payments, and
▪ Cash to Close.
The table has three columns to disclose the amount for each item as it was
disclosed on the Loan Estimate, the Final amount for the item, and an answer to
the question Did this change? (§ 1026.38(e))
In addition, disclose Closing Costs Financed (Paid from your Loan Amount) in the
third column of the Final item. (§ 1026.38(e)(6))
Except as discussed below, the amount disclosed in the Loan Estimate column
is the same as the amount disclosed on the Loan Estimate or a revised Loan
Estimate. (§ 1026.38(e)(1)(i), (2)(i), (4)(i),(5)(i)) The amounts disclosed in the
Loan Estimate column are rounded to the nearest dollar in order to match the
corresponding amount disclosed on the Loan Estimate’s Calculating Cash to
Close table. (Comment 38(e)-3)
74 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
Loan Amount
Loan Amount should have the same amount disclosed, as a positive number, in
the Final column as the Loan Amount in the Loan Terms table on page 1 of the
Closing Disclosure. (§ 1026.38(e)(1)(ii))
Total Closing Costs
Total Closing Costs should have the same amount disclosed in the Final
column as the amount disclosed as Total Closing Costs (Borrower-Paid) on
page 2, as a negative number. (§ 1026.38(e)(2)(ii)) When the amount in the Final
column is different from the amount in the Loan Estimate column, the creditor
should indicate that the consumer should see the Total Loan Costs or Total
Other Costs subheadings, as applicable, on page 2 of the Closing Disclosure.
(§ 1026.38(e)(2)(iii)(A)(2))
Increase in Total Closing Costs That Exceed The Legal Limit
When the increase in Total Closing Costs exceeds the legal limits, disclose a
statement that an increase in closing costs exceeds the legal limits by the dollar
amount of the excess in the Did this change? column. (§ 1026.38(i)(1)(iii)(A)(3)) A
statement directing the consumer to the Lender Credit on Closing Disclosure
page 2 must also be included if a credit to the consumer at closing for the excess
amount is provided by the creditor. (Comment 38(i)(1)(iii)(A)-3)
Closing Costs Paid Before Closing
For Closing Costs Paid Before Closing, disclose $0 in the Loan Estimate column.
(§ 1026.38(e)(3)(i)) The Final column should disclose the same amount designated
as Borrower-Paid Before Closing in the Closing Costs Subtotals of the Other
Costs table on Closing Disclosure page 2, as a positive number. (§ 1026.38(e)(3)(ii))
Total Payoffs and Payments
Total Payoffs and Payments, should have the same amount in the Final column
as the amount disclosed as Total Payoffs and Payments from the Payoffs and
Payments table on page 3, as a negative number. (§ 1026.38(e)(4)(ii))
Cash to Close
Cash to Close discloses the sum of Loan Amount, Total Closing Costs, Closing
Costs Paid Before Closing, and Total Payoffs and Payments in the Loan Estimate
75 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
and Final columns, with indications of whether the totals are due to or from the
consumer. (§ 1026.38(e)(5)(ii))
Closing Costs Financed (Paid from your Loan Amount)
Closing Costs Financed (Paid from your Loan Amount) is the sum of the amounts
in the Final column of the Loan Amount and Total Payoffs and Payments. However,
the amount is disclosed only if the sum is greater than zero and no larger than the
Total Closing Costs (deducting the amount in the Final column of Closing Costs
Paid Before Closing). (§ 1026.38(e)(6))
3�4�3
Summaries of Transactions
FIGURE 43: SUMMARIES OF TRANSACTIONS TABLE OF THE CLOSING DISCLOSURE
76 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
Use the Summaries of Transactions table to disclose the amounts associated with
the real estate purchase transaction between the consumer and seller, together
with closing costs, in order to disclose the amounts due from or payable to the
consumer and seller at closing, as applicable. (§ 1026.38(j),(k)) A separate Closing
Disclosure can be provided to the consumer and the seller that do not reflect the
other party’s costs and credits by omitting certain disclosures on each separate
Closing Disclosure. (§ 1026.38(t)(5)(v),(vi),(ix))
In transactions without a seller, the creditor does not provide the Seller’s Transaction
column as part of the Closing Disclosure. (Comment 38(k)-1) A creditor can
also decide to replace the Summaries of Transactions table with a Payoffs and
Payments table (see Figure 40) when the Alternative Cash to Close and Alternative
Calculating Cash to Close tables are used. (§ 1026.38(t)(5)(vii))
Generally, the Summaries of Transactions table is similar to the Summary of
Borrower’s Transaction and Summary of Seller’s Transaction tables on the HUD-1
Settlement Statement provided under Regulation X prior to the TILA-RESPA rule
taking effect. There are some modifications to the Closing Disclosure related to
the handling of the disclosure of the consumer’s Deposit, the disclosure of Credits,
and other matters, discussed below.
3�4�4
Borrower’s Transaction
A creditor can work with a Settlement Agent, and the Settlement Agent can
disclose the Borrower’s Transaction column of the Summaries of Transactions
table. Any references to the creditor would apply to the settlement agent when the
Settlement Agent discloses the Borrower’s Transaction column. (§ 1026.19(f)(1)(v))
Due From Borrower at Closing
The amount Due from Borrower at Closing is the sum of:
▪ Sale Price of Property,
▪ Sale Price of Any Personal Property Included in Sale,
▪ Closing Costs Paid at Closing,
▪ Other consumer charges,
▪ Adjustments, and
▪ Adjustments for Items Paid by the Seller in Advance, pursuant to the terms of the
real estate sale contract. (§ 1026.38(j)(1))
77 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
Personal Property is defined by State law, but could include such items as carpets,
drapes, and appliances. Manufactured homes are not considered personal
property for the Closing Disclosure. (Comment 38(j)(1)(ii)-1)
Closing Costs Paid at Closing is the amount designated as Borrower-Paid
At Closing minus any Lender Credits on page 2 of the Closing Disclosures.
(§ 1026.38(j)(1)(iv))
Disclose other consumer charges owed by the consumer in the real estate
closing not otherwise disclosed on page 2 of the Closing Disclosure as Due from
Borrower at Closing. Examples include:
▪ Amounts paid to any existing holders of liens on the property in a refinance
transaction, and
▪ Any outstanding real estate property taxes.
These amounts are disclosed without a corresponding credit in the Seller’s
Transaction column. (Comment 38(j)(1)(v)-2)
Adjustments due from the consumer to be paid to the seller are disclosed in two places.
▪ First, amounts owed by the consumer that are neither disclosed on Closing
Disclosure page 2 nor specifically required to be disclosed as Due from
Borrower at Closing. Examples of these amounts include:
ú A balance in a seller’s reserve account transferred to the consumer in
connection with an assumed loan,
ú Rent that the consumer will collect after closing for a period of time prior
to the closing, and
ú The treatment of any tenant security deposit. (Comment 38(j)(1)(v)-1)
▪ Second, additional adjustments are disclosed along with the time-period
associated with the adjustment. Examples include:
ú Taxes paid in advance for an entire year when the closing occurs prior to
the expiration of the year,
ú Flood or hazard insurance premiums when the consumer is being
substituted as an insured under the same policy,
ú
Mortgage insurance in connection with an assumed loan,
ú Planned unit development or condominium association assessments paid
in advance,
78 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
ú Fuel or other supplies on hand purchased by the seller which the
consumer will use when the consumer takes possession of the property,
and
ú Ground rent paid in advance by the seller. (Comment 38(j)(1)(x)-1)
Paid Already By or on Behalf of Borrower at Closing
The amount Paid Already by or on Behalf of Borrower at Closing is the sum of:
▪ Deposit,
▪ Loan Amount,
▪ Existing Loan(s) Assumed or Taken Subject to,
▪ Seller Credits,
▪ Other Credits, and
▪ Adjustments for Items Unpaid by Seller pursuant to the terms of the real estate
sale contract. (§ 1026.38(j)(2))
Deposit is the amount paid into a trust account by the consumer pursuant
to a contract of sale. (Comment 38(j)(2)(ii)-1) If the Deposit has been applied
toward a closing cost paid by the consumer, the amount so applied should be
deducted from the amount of the Deposit. (Comment 38(j)(2)(ii)-2) No deduction
in the amount of the Deposit is to be made for the payment of any real estate
commission disclosed on page 2 of the Closing Disclosure. (Comment 38(g)(4)-4)
Existing Loan(s) Assumed is the total amount of all loans that the consumer
is assuming in the transaction, even if more than one loan is being assumed.
(Comment 38(j)(2)(iv)-1)
Seller Credits include any general credit to the consumer from the seller and
includes a seller making an allowance to the consumer for items to purchase
separately. (§ 1026.38(j)(2)(v)) However, if the seller’s agreement is attributable to a
charge listed on Closing Disclosure page 2, then the amount should be listed with
the item and designated as Seller-Paid at Closing or Seller-Paid Before Closing on
Closing Disclosure page 2. (Comment 38(j)(2)(v)-1)
Seller Credits include any seller credits for issues identified at a walk-through of
the Property. (Comment 38(j)(2)(v)-2)
Other Credits include a general credit from any party other than the seller or
creditor. (§ 1026.38(j)(2)(vi)) One example is a credit a consumer receives from a
79 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
real estate agent. A description of the credit and the name of the party giving the
credit must also be included. However, if the credit or rebate is attributable to a
charge listed on page 2 of the Closing Disclosure, then the amount should be
listed with the item and designated as Paid by Others on Closing Disclosure page
2. (Comment 38(j)(2)(vi)-1)
Other Credits include any transferred escrow balance in a refinance transaction.
(Comment 38(j)(2)(vi)-4) Other Credits also include a credit for any money or other
payments made by family members associated with the transaction, along with a
description of the nature of the funds. (Comment 38(j)(2)(vi)-5)
Disclosure of any amount paid with funds other than closing funds by a consumer
in connection with a subordinate loan payoff are disclosed with a statement that
such amounts were paid with outside of closing funds. (Comment 38(j)(2)(vi)-3)
Adjustments for Items Unpaid by Seller are amounts due to the consumer to be
paid by the seller and are disclosed in two places.
▪ First, items are disclosed along with the time-period associated with the item.
Examples include:
ú Taxes paid in arrears for an entire year when the closing occurs prior the
start of the year,
ú Flood or hazard insurance premiums when the consumer is being
substituted as an insured under the same policy,
ú
Mortgage insurance in connection with an assumed loan,
ú Planned unit development or condominium assessments not yet paid, and
ú Ground rent not yet paid by the seller. (§ 1026.38(j)(2)(vii), (viii), (ix), (x))
▪ Second, additional amounts owed by the seller that are not disclosed on page
2 or specifically included as Due from Seller at Closing. Examples of these
amounts include:
ú Utilities used but not paid for by the seller,
ú Rent collected in advance by the seller for a period extending beyond the
closing date, and
ú Interest on loan assumptions. (Comment 38(j)(2)(xi)-1)
80 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
Cash to Close To or From Borrower
Under a subheading of Calculation:
▪ Disclose Total Due from the Borrower at Closing as a positive number.
▪ Disclose Total Paid Already by or on Behalf of the Borrower at Closing as a
negative number. (§ 1026.38(j)(3))
▪ Disclose the sum of Total Due from the Borrower at Closing and Total Paid
Already by or on Behalf of the Borrower at Closing. Disclose the sum as Cash to
Close From Borrower when the sum is a positive number, and disclose the sum
as Cash to Close To Borrower when the result is a negative number. The sum is
disclosed as a positive number in either event. (Comment 38(j)(3)(iii)-2)
3�4�5
Seller’s Transactions
The Settlement Agent completes and discloses the Seller’s Transaction column of
the Summaries of Transactions table. (§ 1026.19(f)(4))
Due to Seller at Closing
Disclose the amount Due to Seller at Closing as the sum of:
▪ The Sale Price of the Property,
▪ Sale Price of Any Personal Property Included in Sale,
▪ Adjustments, and
▪ Adjustments for Items Paid by Seller in Advance due to the seller pursuant to the
terms of the real estate sales contract. (§ 1026.38(k)(1))
Personal Property is defined by state law, but could include such items as carpets,
drapes, and appliances. Manufactured homes are not considered personal
property for the Closing Disclosure. (Comment 38(j)(1)(ii)-1)
Adjustments due from the consumer to be paid to the seller are disclosed in two
categories:
▪ First, amounts owed by the consumer that are neither disclosed on page 2 nor
specifically required to be disclosed as Due from Borrower at Closing. Examples
of these amounts include:
ú A balance in a seller’s reserve account transferred to the consumer in
81 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
connection with an assumed loan,
ú Rent that the consumer will collect after closing for a period of time prior
to the closing, and
ú The treatment of any tenant security deposit. (Comment 38(j)(1)(v)-1)
▪ Second, Adjustments for Items Paid by Seller in Advance are disclosed along
with the time-period associated with the adjustment. Examples include:
ú Taxes paid in advance for an entire year when the closing occurs prior the
expiration of the year,
ú Flood or hazard insurance premiums when the consumer is being
substituted as an insured under the same policy,
ú
Mortgage insurance in connection with an assumed loan,
ú Planned unit development or condominium association assessments paid
in advance,
ú Fuel or other supplies on hand purchased by the seller which the consumer
will use when the consumer takes possession of the property, and
ú Ground rent paid in advance by the seller. (Comment 38(j)(1)(x)-1)
Due from Seller at Closing
Disclose the amount Due from Seller at Closing as the sum of:
▪ Any Excess Deposit,
▪ Closing Costs Paid at Closing by the Seller,
▪ Existing Loan(s) Assumed or Taken Subject to by the consumer,
▪ Payoff of First Mortgage Loan,
▪ Payoff of Second Mortgage Loan,
▪ Payment of other seller obligations,
▪ Seller Credit,
▪ Adjustments, and
▪ Adjustments for Items Unpaid by Seller due to the consumer pursuant to the
terms of the real estate sale contract. (§ 1026.38(k)(2))
82 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
Excess Deposit is the amount of any deposit made by the consumer that has been
disbursed to the seller prior to closing. (Comment 38(k)(2)(ii)-1)
Seller Credit is an amount the seller is giving as a general credit not tied to a
specific charge on page 2 or is making as an allowance to the consumer for items
to purchase separately. (§ 1026.38(k)(2)(vii)) The amount of Seller Credit would
include any credits to the consumer as the result of a walk-through of the property
prior to the closing. (Comment 38(k)(2)(iv)-2) However, if the amount of a credit is
attributable to a charge listed on page 2, then the amount should be listed with
the applicable item on page 2 and designated as Seller-Paid At Closing or SellerPaid Before Closing, as appropriate. (Comment 38(j)(2)(v)-1)
Disclose the Payoff of the First Mortgage Loan, if any, (§ 1026.38(k)(2)(v)) and then
the Payoff of the Second Mortgage Loan, if any. (§ 1026.38(k)(2)(vi)) Disclose the
payoff or satisfaction amounts for any additional seller obligations as separately
itemized amounts. (§ 1026.38(k)(2)(viii)) Examples of these seller obligations
include, but are not limited to:
▪ Satisfaction of outstanding liens imposed due to Federal, State or local income
taxes,
▪ Real estate property tax liens,
▪ Judgments against the seller reduced to a lien upon the property,
▪ Other obligations the seller wishes the Settlement Agent to pay from the seller’s
proceeds at closing, and (Comment 38(k)(2)(viii)-1)
▪ Funds to be held by the Settlement Agent for repairs or the payment of water,
fuel, or other utility bills that cannot be prorated between the parties at closing
because the amounts used by the seller prior to closing are not yet known at
closing. Subsequent disclosure of a revised Closing Disclosure after the repairs
are made or the utility bill is received is optional. (Comment 38(k)(2)(viii)-3)
Disclose any amount paid with funds other than closing funds in connection with
a subordinate loan payoff with a statement that such amounts were paid from
outside of closing funds. (Comment 38(k)(2)(viii)-2)
Adjustments for Items Unpaid by Seller due to the consumer to be paid by the
seller pursuant to the real estate sales contract has two components:
▪ First, disclose amounts owed by the seller with the time period associated with
the adjustments. Examples include:
83 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
ú Taxes paid in arrears for an entire year when the closing occurs prior the
start of the year,
ú Flood or hazard insurance premiums when the consumer is being
substituted as an assured under the same policy,
ú
Mortgage insurance in connection with an assumed loan,
ú Planned unit development or condominium assessments not yet paid, and
ú Ground rent not yet paid by the seller. (§ 1026.38(k)(2)(ix), (x), (xi), (xii))
▪ Second, disclose amounts owed by the seller that are neither disclosed
on page 2 nor specifically disclosed as Due from Seller at Closing.
(§ 1026.38(k)(2)(xiii)) Examples of these amounts include:
ú Utilities used but not paid for by the seller,
ú Rent collected in advance by the seller from a tenant for a period of
extending beyond the closing date, and
ú Interest on loan assumptions. (Comment 38(j)(2)(xi)-1)
Cash to Close Due to or From Seller
Under a subheading of Calculation:
▪ Disclose Total Due to the Seller at Closing, as a positive number.
▪ Disclose Total Due from Seller at Closing, as a negative number. (§ 1026.38(k)(3))
▪ Disclose the sum of Total Due to the Seller at Closing and Total Due from Seller
at Closing as a positive number. When the result is a positive number, disclose
the amount as Cash to Seller. When the result is a negative number, disclose the
amount as Cash from Seller. The sum is disclosed as a positive number in either
event. (Comment 38(k)(3)-2)
84 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
3�5 Closing Disclosure (page 4)
sections 3.5.1
and 3.5.2
sections 3.5.3
and 3.5.4
FIGURE 44: CLOSING DISCLOSURE (PAGE 4)
85 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
On page 4 of the Closing Disclosure, a Loan Disclosures table is shown with the
heading Additional Information About This Loan.
3�5�1
Loan Disclosures
Additional Information About This Loan
Loan Disclosures
Assumption
If you sell or transfer this property to another person, your lender
will allow, under certain conditions, this person to assume this
loan on the original terms.
will not allow assumption of this loan on the original terms.
Demand Feature
Your loan
has a demand feature, which permits your lender to require early
repayment of the loan. You should review your note for details.
does not have a demand feature.
Late Payment
If your payment is more than days late, your lender will charge a
late fee of
Negative Amortization (Increase in Loan Amount)
Under your loan terms, you
are scheduled to make monthly payments that do not pay all of
the interest due that month. As a result, your loan amount will
increase (negatively amortize), and your loan amount will likely
become larger than your original loan amount. Increases in your
loan amount lower the equity you have in this property.
may have monthly payments that do not pay all of the interest
due that month. If you do, your loan amount will increase
(negatively amortize), and, as a result, your loan amount may
become larger than your original loan amount. Increases in your
loan amount lower the equity you have in this property.
do not have a negative amortization feature.
Partial Payments
Your lender
may accept payments that are less than the full amount due
(partial payments) and apply them to your loan.
may hold them in a separate account until you pay the rest of the
payment, and then apply the full payment to your loan.
does not accept any partial payments.
If this loan is sold, your new lender may have a different policy.
Security Interest
You are granting a security interest in
You may lose this property if you do not make your payments or
satisfy other obligations for this loan.
Escrow Account
For now, your loan
will have an escrow account (also called an “impound” or “trust”
account) to pay the property costs listed below. Without an escrow
account, you would pay them directly, possibly in one or two large
payments a year. Your lender may be liable for penalties and interest
for failing to make a payment.
Escrow
Escrowed
Property Costs
over Year 1
Estimated total amount over year 1 for
your escrowed property costs:
Non-Escrowed
Property Costs
over Year 1
Estimated total amount over year 1 for
your non-escrowed property costs:
You may have other property costs.
Initial Escrow
Payment
A cushion for the escrow account you
pay at closing. See Section G on page 2.
Monthly Escrow
Payment
The amount included in your total
monthly payment.
will not have an escrow account because you declined it
your
lender does not offer one. You must directly pay your property
costs, such as taxes and homeowner’s insurance. Contact your
lender to ask if your loan can have an escrow account.
No Escrow
Estimated
Property Costs
over Year 1
Estimated total amount over year 1. You
must pay these costs directly, possibly
in one or two large payments a year.
Escrow Waiver Fee
In the future,
Your property costs may change and, as a result, your escrow payment may change. You may be able to cancel your escrow account,
but if you do, you must pay your property costs directly. If you fail
to pay your property taxes, your state or local government may (1)
impose fines and penalties or (2) place a tax lien on this property. If
you fail to pay any of your property costs, your lender may (1) add
the amounts to your loan balance, (2) add an escrow account to your
loan, or (3) require you to pay for property insurance that the lender
buys on your behalf, which likely would cost more and provide fewer
benefits than what you could buy on your own.
FIGURE 45: SUMMARIES OF TRANSACTIONS TABLE OF THE CLOSING DISCLOSURE
In the Loan Disclosures table, disclose:
▪ Information concerning future Assumption of the loan by a subsequent
purchaser,
86 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
▪ Whether the legal obligation contains a Demand Feature that can require early
payment of the loan,
▪ The terms of the legal obligation that impose a fee for a Late Payment including
the amount of time that passes before a fee is imposed and the amount of such
fee or how it is calculated,
▪ Whether the regular periodic payments can cause the principal balance of the
loan to increase, creating Negative Amortization,
▪ The creditor’s policy in relation to Partial Payments by the consumer,
▪ A statement that the consumer is granting a Security Interest in the Property
(along with an identification of the Property), and
▪ Information related to any Escrow Account held by the servicer (or a statement
that an Escrow Account has not been established with a description of estimated
property costs during the first year after consummation). (§ 1026.38(l)(1)-(7))
87 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
3�5�2
Escrow Account
Escrow
Escrowed
Property Costs
over Year 1
Estimated total amount over year 1 for
your escrowed property costs:
Non-Escrowed
Property Costs
over Year 1
Estimated total amount over year 1 for
your non-escrowed property costs:
You may have other property costs.
Initial Escrow
Payment
A cushion for the escrow account you
pay at closing. See Section G on page 2.
Monthly Escrow
Payment
The amount included in your total
monthly payment.
No Escrow
Estimated
Property Costs
over Year 1
Estimated total amount over year 1. You
must pay these costs directly, possibly
in one or two large payments a year.
Escrow Waiver Fee
FIGURE 46: ESCROW ACCOUNT TABLE OF THE CLOSING DISCLOSURE
When an Escrow Account is established, disclose:
▪ The amount of Escrowed Property Costs over Year 1 with a list of the costs that
will be paid by the Escrow Account,
▪ The amount of Non-Escrowed Property Costs over Year 1 with a list of the costs
that will not be paid by the Escrow Account (to the extent there is room to list
the costs in the space provided),
88 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
▪ Initial Escrow Payment, and
▪ Monthly Escrow Payment. (§ 1026.38(l)(7)(i)(A))
When an Escrow Account is not established, disclose:
▪ The amount of Estimated Property Costs over Year 1, and
▪ The amount of any Escrow Waiver Fee imposed for waiving the creation of an
Escrow Account with the loan. (§ 1026.38(l)(7)(i)(B))
Property Costs include:
▪ Property Taxes,
▪ Homeowner’s Insurance,
▪ Charges imposed by a cooperative, condominium or homeowners association,
▪ Ground rent,
▪ Leasehold payments, and
▪ Certain insurance premiums or charges if required by the lender.
(§§ 1026.38(l)(7)(i); 1026.37(c)(4)(ii); 1026.43(b)(8))
The Initial Escrow Payment is the same amount disclosed as the subtotal of the
Initial Payment at Closing on page 2 of the Closing Disclosure
3�5�3
FIGURE 47:
Adjustable Payment (AP) Table
ADJUSTABLE PAYMENT (AP) TABLE OF THE CLOSING DISCLOSURE
Disclose the Adjustable Payment (AP) Table when the periodic principal and
interest payment may change after consummation, but not because of a change to
the interest rate, or the loan is a seasonal payment product. (§ 1026.38(m)) If the loan
89 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
does not contain these features, do not disclose the AP Table. (Comment 38(m)-3)
The same information that was or would have been disclosed in the AP Table on the
Loan Estimate is disclosed in the AP Table on Closing Disclosure page 4, updated
to reflect the terms of the loan at consummation. (Comment 38(m)-4)
3�5�4
Adjustable Interest Rate (AIR) Table
FIGURE 48: ADJUSTABLE INTEREST RATE (AIR) TABLE OF THE CLOSING DISCLOSURE
Disclose the Adjustable Interest Rate (AIR) Table when the loan’s interest rate
may increase after consummation. (§ 1026.38(n)) If the loan’s interest rate will not
increase after consummation, do not disclose the AIR Table. (Comment 38(n)-3)
The same information that was or would have been disclosed in the AIR Table on
the Loan Estimate is disclosed in the AIR Table on Closing Disclosure page 4,
updated to reflect the terms of the loan at consummation. (Comment 38(n)-4)
90 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
3�6 Closing Disclosure (page 5)
section 3.6.1
and 3.6.2
section 3.6.3
section 3.6.4
FIGURE 49: CLOSING DISCLOSURE (PAGE 5)
91 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
Disclose Loan Calculations, Other Disclosures, Questions, Contact Information, and,
if desired by the creditor, Confirm Receipt tables on page 5 of the Closing Disclosure.
3�6�1
Loan Calculations
Total of Payments. Total you will have paid after
you make all payments of principal, interest,
mortgage insurance, and loan costs, as scheduled.
Finance Charge. The dollar amount the loan will
cost you.
Amount Financed. The loan amount available after
paying your upfront finance charge.
Annual Percentage Rate (APR). Your costs over
the loan term expressed as a rate. This is not your
interest rate.
Total Interest Percentage (TIP). The total amount
of interest that you will pay over the loan term as a
percentage of your loan amount.
FIGURE 50: LOAN CALCULATIONS TABLE OF THE CLOSING DISCLOSURE
Disclose the Total of Payments, the Finance Charge, the Amount Financed,
the APR, and the Total Interest Percentage (TIP) in the Loan Calculations table.
(§ 1026.38(o)) The APR and TIP amounts should be updated from the amounts
disclosed on the Loan Estimate to reflect the terms of the legal obligation at
consummation.
92 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
3�6�2
Other Disclosures
state law may protect you from liability for the unpaid balance. If you
refinance or take on any additional debt on this property, you may
lose this protection and have to pay any debt remaining even after
foreclosure. You may want to consult a lawyer for more information.
FIGURE 51:
OTHER DISCLOSURES TABLE OF THE CLOSING DISCLOSURE
The creditor discloses in the Other Disclosures table:
▪ A statement related to the consumer’s rights in relation to any Appraisal
conducted for the property,
▪ A statement informing the consumer of consequences of nonpayment, what
constitutes default, when a creditor can accelerate maturity, and prepayment
rebates and penalties pursuant to Contract Details,
▪ A statement of whether State law provides for continued consumer
responsibility for any Liability after Foreclosure,
▪ A statement concerning the consumer’s ability to Refinance the loan, and
▪ A statement concerning the extent that interest on the loan can be included as a
Tax Deduction by the consumer. (§ 1026.38(p))
93 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
Appraisal
A statement concerning the Appraisal must be
provided for:
A Higher-priced Mortgage
Loan is defined at 12 CFR
1026.35.
Coverage of the Equal
Credit Opportunity Act is
discussed in Regulation
B, 12 CFR Part 1002,
Supplement I – Official
Interpretations, Comment
1(a)-1.
▪ Higher-priced Mortgage Loans, and
▪ Loans covered by the Equal Credit
Opportunity Act. (§ 1026.37(m)(1))
For these transactions, the creditor must
provide the following statement:
“If the property was appraised for your loan, your lender is required to give you
a copy at no additional cost at least 3 days before closing. If you have not yet
received it, please contact your lender at the information below.”
Lender
Mortgage Broker
Real Estate Broker (B) Real Estate Broker (S) Settlement Agent
Name
Address
NMLS ID
License ID
Contact
Contact NMLS ID
Contact
License ID
Email
Phone
FIGURE 52: ESCROW ACCOUNT TABLE OF THE CLOSING DISCLOSURE
3�6�3
Contact Information
In the Contact Information table, disclose the following information for the Lender,
the Mortgage Broker, the consumer’s Real Estate Brokerage, the seller’s Real
Estate Brokerage, and the Settlement Agent in a columnar format:
▪ Name,
▪ Address,
▪ The NMLS or State license ID, as applicable,
94 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
▪ The Contact name of an individual (and the NMLS or State license ID),
▪ Email, and
§ Phone number. (§ 1026.38(r))
Unused columns may be removed and columns may be added for additional
parties. For example:
▪ If there are two real estate brokers representing the seller, a column may
be added to identify that party and a column for a party not involved in the
transaction may be deleted. (Comment 38(r)-1)
PAGE 5 OF 5 LOAN ID #
FIGURE 53: CONFIRM RECEIPT TABLE OF THE CLOSING DISCLOSURE
3�6�4
Confirm Receipt
The creditor, at its option, may include a line for the signatures of the consumers
to Confirm Receipt. If the creditor includes a signature line to Confirm Receipt, the
creditor must also include a statement that the signature only signifies receipt of
the Closing Disclosure� (§§ 1026.38(s), 1026.37(n)(1))
If the creditor does not include statement line or the consumer’s signature, add a
statement to the Other Disclosures concerning Loan Acceptance that states: “You
do not have to accept this loan because you have received this form or signed a
loan application.” (§§ 1026.38(s)(2), 1026.37(n)(2))
95 TILA-RESPA INTEGRATED DISCLOSURE | CLOSING DISCLOSURE
4� Where can I find a copy
of the TILA-RESPA
rule and get more
information about it?
You can find the 2013 TILA-RESPA rule on the Bureau’s website at consumerfinance.
gov/regulations/integrated-mortgage-disclosures-under-the-real-estatesettlement-procedures-act-regulation-x-and-the-truth-in-lending-act-regulation-z/.
In addition to a complete copy of the TILA-RESPA rule, that web page also contains:
▪ The preamble, which explains why the Bureau issued the rule; the legal authority
and reasoning behind the rule; responses to comments; and analysis of the
benefits, costs, and impacts of the rule.
▪ Official Interpretations of the rule.
▪ The Compliance Guide.
▪ Useful resources related to regulatory implementation including samples of
completed Loan Estimates and Closing Disclosures for different loan products
are also available at consumerfinance.gov/regulatory-implementation/tilarespa/.
96 TILA-RESPA INTEGRATED DISCLOSURE | ADDITIONAL INFORMATION
consumerfinance.gov
Consumer Financial Protection Bureau
1700 G Street NW
Washington DC 20552
855-411-CFPB (2372)
TTY/TDD 855-729-CFPB (2372)
[email protected]
July 2015
| File Type | application/pdf |
| Author | Galleher, Michael (Contractor)(CFPB) |
| File Modified | 2016-08-05 |
| File Created | 2016-08-05 |