The Closing Disclosure is broken out into four tabs. The Borrower and Seller tabs of the Closing Disclosure will display for Purchase, Construction, and Other loan types.
Fees Tab
This tab matches the Loan Estimate (refer to Loan Estimate for details). These fees stay in sync throughout the life of the loan.
Fees marked as “Seller Responsible” in admin will display on the Closing Disclosure view of the Fees tab. This field will display on the Closing Disclosure view of the Fees tab to be indicated on the fly on the loan level.
The “Borrower Responsible” field will display on the Closing Disclosure view of the Fees tab to be indicated on the fly on the loan level.
Fee View: The fee view is the default view. The columns will show the Fee Name, Current, Paid By, Paid To, and Details. Details contains check boxes allowing for the fee to be designated as PFC, Sec 32, Affiliate, Financed, or POC.
Tolerance View: The columns will show the tolerance basis value, the most recently disclosed fee value, and the current fee value. The basis is set when the fee tab is disclosed for the first time. This means that every fee basis will be set to the current fee amount when initially disclosed.
The amounts displayed in the Last Disclosed column are disabled and reflect the last disclosed amount for the fee. The current amount column will detail, in display fashion, the current fee amount. This value will continue to update each time the Fee has been edited on the current column of the fee screen and the updated amount will reflect the most recently saved amount.
The purpose of the Tolerance View section of the Fees page is to group all of the fees into their appropriate tolerance categories. The Tolerance threshold are tracked at a tolerance category level (not fee or fee category level). This view will group the fees together by their tolerance category-meaning 0%, 10% or Unlimited-so that users can see how close they are to be in or out of tolerance at the loan level.
Audit View: The purpose of the audit view is for users to be able to see the detail surrounding every fee change circumstance at the application level. This is a read only page but you can print it if you need to. It shows the breakdown of every fee included in the 10% and 0% tolerance tracking. The audit view will detail out every time each individual fee was changed, who made the change, if the change was disclosed on the LE or CD, the change reason, the change category and any notes associated wit the change, the original fee amount and the updated fee amount. The audit view will also alert user when someone with the permission to override the Tolerance Basics, did so.
If a user changes a fee a Change Fee Modal will open. This modal is where the user can indicate the new Fee amount. The user can also enter any notes and those will be added to the Audit View of the fees screen.
The Recalculate Fees button will load a fee calculation modal which will recalculate all fees based on the current loan scenario. The results will detail the Name of the impacted fee, the current saved fee value, and the newly calculate value. The calculated value column will reflect the new fee as calculated based on current loan data and existing fees schemes as configured in admin. You can select the individual fees that need to be updated and select Submit to update all marked fees simultaneously.
Once you have completed all sections there is a Disclose button at the bottom of the screen. It is imperative that you utilize the Disclose button on the Closing Disclosure screen. The system will need this indication to appropriately track tolerance basis changes and compliance alerts for the new timeline delivery requirements.
Aggregate Adjustment Calculator
The Aggregate Adjustment Calculator allows users to determine how much must be deposited in escrow by the borrower. In order for the calculator to compute the totals, users will need to know the bills are due for each category being entered in.
To access the Aggregate Adjustment Calculator, go to the Initial Escrow Payment at Closing section in the Fee View of the Fees tab, where the Calculator button can be clicked.
Once the Aggregate Adjustment button is clicked, the Initial Escrow Account Setup window will populate.
The Settlement Date and First Payment Date fields will automatically populate based on information previously entered on the Closing Docs > Loan tab and will be disabled.
The Cushion field will automatically populate based on the setup in the System Admin site. The Cushion will be defaulted wither 0, 1, or 2 months however the field is enabled and allows users to make any applicable edits.
The Exclude MI check box will automatically populate a mark within the check box if the same Exclude MI check box is marked on the Forms & Docs > MI Screen. The Exclude MI check box is a disabled field and cannot be edited from the Aggregate Adjustment Calculator.
A message available to users is displayed on the screen and states:
Please enter all disbursement information below. The payment date should be the date the first payment is due based on the payment schedule. If a value other than "Annually" is selected the other payment dates will be calculated based on payment date and payment schedule. (If payment schedule is semi-annually with annual payment of 1200, and a date of 01/01/2005 is entered, the break down will display 600 due on 1/1/2005 and 600 due on 7/1/2005.)
The Disbursement Information section is divided into seven difference columns: Clear Record, Disbursement Type, Payment Schedule, Annual Payment Amount, Payment Date(s), # of Months, and Monthly Amount.
The Delete Record column allows users to mark a check box to indicate that the information within that row is to be deleted. Once the user marks the check box, the data previously entered for that line will immediately be removed.
The Disbursement Type column identifies the type of escrow being calculated (Hazard Insurance, Mortgage Insurance, City Taxes, and so on.)
The Payment Schedule column allows users to select from a drop-down list providing the following options: Annually, Semi-Annually, Quarterly, and Monthly. The Payment Schedule selected indicates the amount of payments being disbursed.
The Annual Payment Amount column allows users to enter the total annual payment amount due for the escrow.
The Payments Dates column allows users to enter in the date the escrow payments are to be disbursed. Based on the Payment Schedule being selected, the Payment Date fields will change to correspond with the amount of disbursements going out.
If the Payment Schedule is annually, then the Payment Date column will populate one date field for the disbursement date.
If the Payment Schedule is semi-annually, then the Payment Date column will populate two date fields for the disbursement dates.
If the Payment Schedule is Quarterly, then the Payment Date column will populate four date fields for the disbursement dates.
If the Payment Schedule is monthly, then the Payment Date column will populate one date field for the disbursement date.
The #of Months column will automatically populate based on the Payment Schedule, Annual Payment Amount and the Payment Dates to provide the number of months being escrowed plus the cushion amount. This column can be edited by users if applicable and by click the marked check box next to the field, the system will automatically populate the original number of months calculated.
The Monthly Amount column will automatically populate based on the Payment Schedule, Annual Payment Amount and the Payment Dates to provide the monthly payment for the escrow. This column is disabled and cannot be edited by users.
Once all of the disbursement information has been entered, users will click the Calculate button at the bottom right side of screen. Once the Calculate button is clicked, the Aggregate Adjustment amount in the Aggregate Adjustment field will automatically calculate.
Tip: The Aggregate Adjustment amount must be zero or less.
The Total Estimated Disbursements will automatically populate based on each of the calculated monthly payments * twelve months for each disbursement type. This field is disabled and cannot be edited.
The Monthly Escrow Payment will automatically populate based on each of the calculated monthly amounts within the Monthly Amount column.
The Cushion field will automatically calculate, based on the cushion months in the Cushion field and the sum of the monthly disbursements.
Save/Close will save all of the data that a user added, edited and/or removed from the Initial Escrow Account Setup window and close the window.
Cancel will cancel all of the data that a user added, edited and/or removed from the Initial Escrow Account Setup window and close the window.
Clear will clear out all of the data entered on the Initial Escrow Account Setup window.
The Trial Balance button, if clicked, allows users to view an Escrow Trial Balance in a separate window. The Escrow Trial Balance will automatically populate all monthly payment amounts for each disbursement type, First Payment Date, Escrow Payment, Exclude MI from Cushion and Initial Payment. The Escrow Trial Balance will also display a summary of up to one year from the first payment month, the escrow payments coming in and the escrow payments being disbursed with the remaining escrow balance.
Borrower Tab
The Borrower tab contains amounts Due from Borrower at Closing, Adjustments, Adjustments for Items Paid by Seller in Advance, Paid Already by or on Behalf of Borrower at Closing, Other Credits and Adjustments, Adjustments for Items Unpaid by Seller and then a calculation section.
The Sales price of the Property will be disabled and populate from the 1003 > Transactions Detail > Purchase Price. The Closings Costs paid at Closing (J) will be disabled and populate from the Fees tab. The Payoffs and Payments will be disabled and default from the Payoffs/Payments tab.
Seller Tab
The Seller tab contains amounts Due to Seller at Closing, Adjustments for Items Paid by Seller in Advance, Due from Seller at Closing, Adjustments for Items Unpaid by Seller, and the Calculation section.
Users have the ability to add a fee line by clicking Add Fee Line + which will open up a section for adhoc fees.
Payoffs/Payments Tab
The Payoff tab allows users to enter all debts being paid off from closing. These debts can be first and/or second mortgages or other borrower debts.
The # field will automatically display a count for each payoff line (1-25.)
The Payoff Party field allows users to enter the name of the Payoff Party for the debt that is being paid off.
The Amount field allows users to enter the total amount being paid off for the Payoff Party specified.
The Total Disbursements field will calculate the total of all amounts being paid off at closing.
If any debts are marked to be Paid at Closing from Loan Proceeds on the Forms & Docs > 1003 > Liabilities tab, each debt will automatically populate the Payoff Party and Amount fields. The Payoff Party for any debts automatically populated will be not be editable and the Payoff Party field for the debt will be disabled. The Amount field for debts automatically populating will be enabled and allow for users to make edits to the dollar amount.
For debts automatically populating from the Forms & Docs > 1003 > Liabilities tab: If any of the dollar amounts in the Amount fields are edited, the edited dollar amount will automatically update the dollar amount on the Forms & Docs > 1003 > Liabilities tab to coincide between the two screens.