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Hello, I am not sure how to disclose amounts on a 2nd-to-purchase transaction. Our Secondary Market (SM) area is providing the 1st-to-purchase financing and we are doing the 2nd.
I have read some forums which state that you are allowed to use the alternate C2C table, but in our software (LaserPro) it will not allow you to select that the loan is for “Purchase” and also select the alternative “non-seller” table.One of our bankers already sent out the LE, and now I have the file to review the CloD. It is not making sense.
Some questions include:
-Do we list the sale price? Or just on the SM’s form so as not to show it twice?
-Do we list the deposit? Or just on the SM’s form so as not to show it twice?
-Do we list the amount of the 1st/SM’s loan on our CloD on page 3 in Section K, since our loan proceeds are NOT going to our customer, but are going to be automatically applied to the 1st/SM’s transaction? (Which will also be shown on their CloD)
-Do we show the sales price on CloD pg 3 sections K & M?
-Should the seller be showing any amounts on pg 3 section M & N? Or should it all show on the 1st/SM’s transaction?So confused. If you can help at all today or first thing in the morning that would be wonderful.
If I am understanding your question correctly, I believe this prior Q&A will answer your question: https://mycomplianceresource.com/forums/topic/trid-2nd-mtg-dpa/.
If it is not the same issue please respond letting us know more details about the transaction.
Our transaction meets the definition of ‘purchase’ from 1026.37.
What I have found in research is that the CFPB’s webinar hosted by Outlook Live in August 2014 addresses how to disclose the 2nd lien loan to purchase (these are on the CFPB’s website as TRID resources). The CFPB allows these 2nd lien lenders to utilize the “alternate” forms as long as the 1st lien lender discloses all of the seller’s amounts on their CloD.
The trouble we run into is that our program (LaserPro) does not allow us to switch to the alternate forms when the TRID Purpose is “purchase”. LaserPro’s legal counsel reviewed this issue for me and they agree, and have submitted an enhancement request to their technicians, hopefully allowing this for a future release.In the meantime, one of our Bankers found a workaround, which is to select the option to have the CloD prepared separately for borrower and seller, except that we will only provide the borrower CloD. The 1st lien lender will provide the CloD with seller info & we will put a copy of that for our file. This way, our CloD still has page 1 with purpose of “purchase”, seller information, and purchase price…while removing any amounts in seller columns from pages 2 and 3.
If you have additional thoughts on this please let me know.
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