[Christopher]

In closing a refi and HELOC simultaneously where proceeds from the HELOC will be used to pay a portion of the closing cost in the refi, the alternative Cash to Close table does not provide a line for subordinate financing, as the HUD-1A does. I believe that if both loans were TRID covered we would combine the amounts due to and from the borrower on each CD in calculating the final amount due to or from the borrower. If this is correct, how would we handle the Cash to Close disclosure for a refi when a subordinate lien HELOC is consummated simultaneously and funds from the HELOC are used to pay closing costs of the refi?

[rcooper]

The comment 1026.37(h)(1)(vii)-5 “Adjustments and Other Credits – Proceeds from subordinate financing or other source” states:

Funds that are provided to the consumer from the proceeds of subordinate financing, local or State housing assistance grants, or other similar sources are included in the amount disclosed under § 1026.37(h)(1)(vii).

[Christopher]

Thanks Robin. Our issue is that our LOS vendor is providing only one version of the CD based on the loan Purpose. When the transaction is not a purchase the version provided is model form H24-E that doesn’t include section L Paid Already by or on Behalf of Borrower at Closing. Is there somewhere else in H24-E where the disclosure can be made?

[Author]

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