ComplianceOne®
mortgage
Cash to Close
Training Guide
This publication was written for the ComplianceOne Solution (mortgage).
Publication Information / Version
Cash to Close Training Guide
Revision Date: September 2015
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Contents
Estimated Cash to Close: Standard or Seller Version ....................................................................... 1
Total Closing Costs (J): Loan Estimate ....................................................................................... 2
Closing Costs Financed (Paid from your Loan Amount) .................................................................... 3
Down Payment/Funds from Borrower: Loan Estimate ..................................................................... 4
Deposit/Funds for Borrower: Loan Estimate ................................................................................. 5
Seller Credits: Loan Estimate .................................................................................................... 6
Adjustments and Other Credits: Loan Estimate ............................................................................. 7
Standard Version (With a Seller): Changes for the Closing Disclosure.................................................. 8
Closing Costs Paid Before Closing ............................................................................................... 9
Closing Costs Financed (Paid from your Loan Amount): Closing Disclosure ......................................... 10
Deposit: Closing Disclosure ..................................................................................................... 11
Seller Credits: Closing Disclosure ............................................................................................. 12
Adjustments and Other Credits: Closing Disclosure ...................................................................... 13
Cash to Close: Alternative or Non—Seller Version ........................................................................ 15
Loan Amount: Loan Estimate Alternative Version ........................................................................ 16
Total Closing Costs (J): Loan Estimate ....................................................................................... 17
Estimated Total Payoffs and Payments: Loan Estimate .................................................................. 18
Estimated Cash to Close: Loan Estimate .................................................................................... 19
Estimated Closing Costs Financed (Paid from your Loan Amount): Loan Estimate ................................ 20
Alternate Non-seller Version: Changes for the Closing Disclosure .................................................... 21
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iv
Estimated Cash to Close: Standard
or Seller Version
Objectives
This section describers how to complete the Calculating Cash to
Close table when a seller is involved. We will follow the loan
example described below:
Loan Estimate
– $250,000 Sales Price
– $200,000 Amount Requested
– Fees
Learn how items change when converted to the Closing
Disclosure.
Note: A future update of this document will review
how to complete Calculating Cash to Close table when
completing a refinance. If the Alternative or non-seller
version is needed, please refer to the next lesson.
Calculating Cash to Close Training Guide
1
Total Closing Costs (J): Loan Estimate
Total Closing Costs (J)
This item is the total amount from page 2 of Loan Estimate. Total Closing Costs (J) is the sum of Loan Costs
plus Other Costs minus Lender Credits. ComplianceOne mortgage calculates the cost from the Calculations
page. The cost is displayed as a positive number. See examples below.
2
Calculating Cash to Close Training Guide
Closing Costs Financed (Paid from your Loan Amount)
Closing Costs Financed (Paid from your Loan Amount)
On the “standard” (with a seller) version, the cost is always a negative number or $0. ComplianceOne mortgage
calculates this cost.
Per regulation, the cost is calculated using the formula:
The Loan Amount minus Payments to 3rd Parties Not Disclosed in Total Closing Costs.
If the result of this formula is
If the result of this formula is
Costs, the Total Closing Costs
If the result of this formula is
negative number.
a negative number, $0 prints in the field.
a positive number and the number is greater than the Total Closing
numeric value prints as a negative number.
less than the Total Closing Costs, the entire positive number prints as a
Example 1
Per Formula
$200,370 — $250,000 = ($49,630)
Results in a Negative number, so $0
prints.
Example 2
The Loan Amount is the same. The
Payments to 3rd Parties is $195,000.
$200,370 — $195,000 = $5,370
Results in a Positive number that is
greater than ($3,545), so - $3,545
prints.
Calculating Cash to Close Training Guide
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Payments to 3rd Parties Not Disclosed in Total Closing Costs: This field is manually entered.
Examples of Payments to 3rd Parties include:
Sales Price in a Purchase Transaction
A Construction Contract in a Construction Loan
State Lien Tax
Credit Card Balances
Loan Payoffs
Any other 3rd Party charges that may not be fully known by the Lender at the time the Loan Estimate is
provided.
Down Payment/Funds from Borrower: Loan Estimate
Down Payment/Funds from Borrower
This amount is the Sales Price minus the Loan Amount. ComplianceOne mortgage calculates this number. The
amount prints as a positive number. Zero prints if the result of the calculation is zero or negative.
Per Formula
Sales price — Loan Amount
$250,000 — $200,370 = $49,630
4
Calculating Cash to Close Training Guide
Deposit/Funds for Borrower: Loan Estimate
Deposit
This amount is paid to seller or held in trust/escrow under terms of contract. A typical example is earnest
money. This amount will print as a negative number and is manually entered on the Calculating Cash to Close
table in Calculations.
Funds for Borrower
Funds for Borrower in a purchase transaction will be $0 when there is a Down Payment. For a Refinance with
Cash Out, the amount will be negative or $0. ComplianceOne mortgage calculates this amount.
Calculating Cash to Close Training Guide
5
Seller Credits: Loan Estimate
Seller Credits
Seller Credits is the sum of Specific Seller Credits and Generalized Seller Credits. ComplianceOne mortgage
calculates Specific Seller Credits by totaling all fees set to Paid By Seller. Generalized Seller Credits is a
manually entered value in the Calculating Cash to Close table on the Calculations page. The sum of these two
fields prints as a negative number.
Seller Credits are Seller-paid by fees plus
Generalized Seller Credits.
Generalized Seller Credits are used for
issues identified at a walk-through of the
property.
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Calculating Cash to Close Training Guide
Adjustments and Other Credits: Loan Estimate
Adjustments/Other Credits
Adjustments and Other Credits (specific and generalized) are used to determine the Adjustments and Other
Credits total (see below). These values are manually entered or calculated by using values entered into
ComplianceOne mortgage. Other credits are items paid by persons other than originator, creditor, consumer or
seller. Adjustments are amounts required to be paid by consumer per contract. Examples of items that are paid
by persons other than the loan originator, creditor, consumer, or seller include:
Gifts from family members
Credits from a developer or home builder to be applied to items in the Loan Costs and Other Costs
table.
Other Credits also include 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 Adjustments for 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
Prorations for homeowner’s association dues.
Adjustments and Other Credits
This amount is a calculated value. It is the sum of Specific Other Credits, Generalized Other Credits, and
Adjustments. The formula is: Adjustments and Other Credits = Specific Other Credits plus Generalized Other
Credits minus Adjustments.
Calculating Cash to Close Training Guide
7
Standard Version (With a Seller): Changes for the Closing
Disclosure
The fields for the Calculating Cash to Close table on the Loan Estimate and Closing Disclosure are identical with
a few variations in data collection in ComplianceOne mortgage.
Calculations screen: no manual inputs
New Closing Disclosure screen
New Disbursements screen
Application Phase
Closing Phase (No inputs)
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Calculating Cash to Close Training Guide
Closing Costs Paid Before Closing
Calculating Cash to Close Training Guide
9
Closing Costs Financed (Paid from your Loan Amount):
Closing Disclosure
The Closing Disclosure includes the same fields as the Loan Estimate with the addition of the Closing Costs Paid
Before Closing field.
Closing Costs Financed (Paid from your Loan Amount) on Closing Disclosure
This amount is the sum of all fees paid by the borrower at closing that are financed (i.e. Add to Amount
Requested or Subtract from Proceeds). If there are no financed fees, this amount is $0.
Down Payment on Closing Disclosure
The Down Payment is calculated slightly differently on the Closing Disclosure versus the Loan Estimate.
On the Loan Estimate: The Down Payment is the result of the Sales Price less the Loan Amount.
On the Closing Disclosure: The Down Payment is the Sales Price less Proceeds.
10
Calculating Cash to Close Training Guide
Deposit: Closing Disclosure
The Closing Disclosure includes the same fields as the Loan Estimate. ComplianceOne mortgage includes a
different data entry screen for the Closing Disclosure. The Deposit value will carry over from the Application
Phase to the Closing Phase.
Calculating Cash to Close Training Guide
11
Seller Credits: Closing Disclosure
Seller Credits is the lump sum paid by the Seller. The amount must be manually entered on the Closing
Disclosure screen. The amount does not carry over from the Application Phase. Note: This amount defaults to
zero unless the Seller Credit option in the Closing Adjustment Item drop-down list is selected on the Closing
Disclosure screen.
12
Calculating Cash to Close Training Guide
Adjustments and Other Credits: Closing Disclosure
Adjustments and Other Credits do not carry over from the Application Phase and must be entered manually on
the Closing Disclosure screen. Note: This amount defaults to zero unless the Adjustments and Other Credits
section in the Closing Disclosure screen is completed.
Note
If the At Closing option is selected in the When Paid dropdown list, the numeric figure will be included into the
Adjustments and other Credits section. If the Before
Closing option is selected in the drop-down list (in our
example), the amount will not be included in the
Adjustments and Other credits section.
Calculating Cash to Close Training Guide
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Calculating Cash to Close Training Guide
Cash to Close: Alternative or Non—
Seller Version
Objectives
This section describes how to complete the Calculating Cash to
Close table when a seller is not involved. We will follow the
loan example described below:
Loan Estimate:
–
–
–
–
$125,000 Appraisal amount
$100,000 Amount Requested
$90,000 payoff loan balance
Fees:

Variety of Financed, Cash

Origination, Appraisal, Title
Learn how items change when converted to the Closing
Disclosure.
– Enter credentials and codes
Calculating Cash to Close Training Guide
15
Loan Amount: Loan Estimate Alternative Version
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Calculating Cash to Close Training Guide
Total Closing Costs (J): Loan Estimate
Total Closing Costs (J)
Total Closing Costs (J) is the total amount from page 2 of Loan Estimate. Total Closing Costs (J) is the sum of
Loan Costs plus Other Costs minus Lender Credits. ComplianceOne mortgage calculates this amount from the
Calculations page. This amount will be displayed as a negative number. It is the same sum as described in the
Standard version.
Calculating Cash to Close Training Guide
17
Estimated Total Payoffs and Payments: Loan Estimate
Estimated Total Payoffs and Payments is the total amount to be paid to 3rd parties not otherwise disclosed as
items in the Loan Costs or Other Costs tables. It is disclosed as a negative number and manually entered on the
Calculations page.
Examples of Estimated Total Payoffs and Payments to be made to third parties not otherwise disclosed in the
Loan Costs or Other Costs tables may include:
Payoffs of existing liens secured by the property such as mortgages, deeds of trust, judgments that
have attached to the property
Mechanics’ and materials’ liens
Local, State, and Federal tax liens
Payments of unsecured outstanding debts of the consumer
Payments to other 3rd parties for outstanding debts of the consumer as required to be paid as a
condition for the extension of credit
18
Calculating Cash to Close Training Guide
Estimated Cash to Close: Loan Estimate
The Estimated Cash to Close value is the total sum of the amounts disclosed as Loan Amount, Total Closing
Costs (J), and Estimated Total Payoffs and Payments. Check boxes are used to disclose whether the Estimated
Cash to Close is due from the consumer or will be paid to the consumer at consummation.
Per the regulation, this amount is calculated using the formula:
Loan Amount less the Total Closing Costs (J) less the Estimated Total Payoffs and Payments.
If the calculation results in a positive number, the To Borrower box will be selected.
If the calculation results in a negative number, the From Borrower box will be
selected.
$100,027 — $1,927
— $90,000 = $8,100.
Our example is positive number, so the To Borrower box is selected.
Calculating Cash to Close Training Guide
19
Estimated Closing Costs Financed (Paid from your Loan
Amount): Loan Estimate
Estimated Closing Costs Financed (Paid from your Loan Amount) 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 Total Closing
Costs.
Per the regulation, this amount is calculated using the formula:
Loan Amount minus Total Payoffs and Payments
If the result of this formula is a negative number, $0 prints in the field.
If the result of this formula is positive number and that number is greater than the
Total Closing Costs, the Total Closing Costs numeric value prints as a positive number. If
this number is less than the Total Closing Costs, the entire number will print as a
positive number in this field.
$100,027 — $90,000 = $10,027
The amount is a positive number so there is room to cover the Total Closing Costs.
Note: The Total Closing Costs ($1,927 in this example) is the maximum amount that can
appear in this field.
Let’s change the scenario.
Same Loan Amount but Total Payoffs and Payments are $105,000.
$100,027 — $105,000 = -$4,973
The amount is a negative number, so there is no room to cover the Total Closing Costs
and $0 prints.
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Calculating Cash to Close Training Guide
Alternate Non-seller Version: Changes for the Closing
Disclosure
'The Calculating Cash to Close information is no longer on the Calculations screen.
The Closing Disclosure includes the same fields as the Loan Estimate with the addition of the Closing
Costs Paid Before Closing field.
The Total Payoffs and Payments (K) is a sum of all items checked as "Payoff and Payment" on the
Disbursement view.
Calculating Cash to Close Training Guide
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