Overview
This demonstrates how to enter general lender credits on the Closing Disclosure.
When a credit is issued by the lender, it is important to know if it is a:
- General Credit – this needs to be entered on the Settlement/Deposits, Credits, Debits tab as a buyer credit.
- General Credit Towards a Specific Item (e.g. appraisal fee) – this needs to be entered on the specific line where the charge appears as a POC or partial POC item and be associated with the lender partner.
- Tolerance Cure (amount of charge exceeding the quoted amount on the loan estimate) – this needs to be entered in the Tolerance Cure box on the specific line where the variance occurred. This amount will be shown as a lender credit the aggregate to the buyer.
General Lender Credit – Section L
This is a blanket credit not associated with a specific charge. Enter this on Settlement/Deposits, Credits, Debits by clicking New and selecting Buyer Credit. This will display on page 3 of the CD.
- NOTE: A new settlement type may be created specifically for these types of credits in Admin/General Settlement/Settlement Type Defaults by copying the Buyer Credit line and renaming it. The Section on the CD tab should be set to “L Other.”
In 8.7, if the user puts information in the Override Line Desc field, that information is what will display on the CD.
General Lender Credit – Section J
This is a blanket credit not associated with a specific charge. Enter this on Settlement/Deposits, Credits, Debits by clicking New and selecting Buyer Credit. This will display on page 2 of the CD.
- NOTE: A new settlement type may be created specifically for these types of credits in Admin/General Settlement/Settlement Type Defaults by copying the Buyer Credit line and renaming it. The Section on the CD tab should be set to “Page 2 – Lender Credits.”
In 8.7, if the user puts information in the Override Line Desc field, that information is what will display on the CD.
General Lender Credit Towards a Specific Charge
This is used when the lender is giving a credit towards a specific charge, such as an appraisal fee. This is entered as a POC or a partial POC on the specific line where the charge appears. The POC Partner needs to be the lender.
Tolerance Cure
This is used when the actual fee exceeds what was disclosed on the Loan Estimate. The cure amount needs to be entered in the Tolerance Cure field on the line where the charge is entered. If the Tolerance Cure field is not on the line, the Tolerance Cure property will need to be added to the line in Admin/General Settlement/Settlement Type Defaults by a Resware administrator.
