Loan Estimate Form Checklist 1026.37 Summary of 2018 Rule Field Details ...

Field

Bank Name (a)(3) "Save this LE" statement (a)(2) Date Issued (a)(4) Applicants (a)(5) Property (a)(6) Sale Price (a)(7)

Prop Value (a)(7)

Loan Terms (a)(8)

Purpose (a)(9) Product (a)(10)

Loan Estimate Form Checklist 1026.37

Summary of 2018 Rule

Optional Compliance Oct. 1, 2017; Mandatory Compliance Oct. 1, 2018

Name and address of creditor making the disclosures. If mortgage broker completing, use name of creditor. If creditor is not known, leave blank. "Save this Loan Estimate to compare with your Closing Disclosure"

Date LE was delivered to borrower (placed in mail)

Name and address of each consumer applying for credit Address must be U.S. Postal mailing address. List address of each applicant. (addendum OK if doesn't fit on first page) If loan to trust for tax or estate planning purposes, provide LE to trustee. If no other borrower, may list name and mailing address of trust only. Collateral property - list ALL properties securing loan with street address and zip (may use legal description and zip). Addendum OK if don't all fit on first page. Personal property may be disclosed (no addendum)

Use if transaction with seller - contract sale price on application or sales agreement. If personal property included in sale price of property, use price without reduction for value of personal property. If construction loan w/ lot purchase, sales price is lot purchase price. If sale also includes Personal Property and value of the personal property is known, do not include in Sale Price. If value of Personal Property is unknown, disclose sale price on sales agreement or application. Example: Purchase home and pool table for $200,000 - value of pool table is not known so disclose $200,000. If value of pool table is $5,000, disclose $195,000 for Sale Price.

Details

Use with transaction without seller. Value is property value estimate on application or provided by applicant. If appraisal is received prior to disclosure issuance or creditor has performed own evaluation, update value to appraised value - continue to use Estimated Prop. Value label.

If multiple properties are collateral, provide aggregate value.

For construction loan without seller, may disclose estimated value of improvements to be made on property or disclose value before improvements.

Years to maturity. Construction-Perm loans: If providing one disclosure, combine terms of both phases. Construction-Perm loans: If providing two disclosures, calculate construction period from consummation to end of interest-only period; calculate permanent financing term starting on the date interest begins accruing for permanent phase through maturity.

If term in whole years, disclose whole years If < 24 months, use X mo. If = or > 24 months, use X yr. X mo. Example: Loan term of 18 months - disclose as 18 mo. Loan term of 30 months, disclose as 2 yr. 6 mo.

Purchase, Refinance, Construction, Home Equity (relationship of funds to collateral property) Hierarchy in Purpose Hierarchy: Purchase, Refinance,

order listed.

Construction, Home Equity

Simultaneous Second Lien Loans - Disclose with purpose of "Purchase"

2 part disclosure: 1st part: additional payment features and duration (Negative Amortization, Interest Only, Step Payment,

Balloon Payment, Seasonal Payment) - Disclose only FIRST feature. Example: For construction loan with 11 interest only payments plus balloon, disclose Interest Only - do not disclose balloon.

2nd part: features that change interest rate and timing (Adjustable Rate; Step Rate; Fixed Rate;) Examples for ARM Loans: If initial interest rate is at PAR (index plus margin) AND all rate adjustments have same timing (every 1 year, every 3 years, every 5 years), Disclose product starting with 0. For any loan with either an introductory rate or introductory period, disclose as shown on Program Disclosure (3/1, 5/1, 7/1 ARM). If the interest rate is determined by adding the index plus margin but the rate is held up by the floor, this would not be considered an introductory rate. So, if there is no introductory period (all rate adjustments have the same timing), disclose product starting with 0.

Payment Feature - if more than one, list first applicable feature in this order (Negative Am, Interest Only, Step Payment, Balloon Payment, Seasonal Payment) Timing for product types or features that have introductory periods or adjustment periods: If not whole years: For Terms < 24 months - disclose X mo. Terms = or > 24 months, use decimals rounded to 2 places

CFPB indicates for balloon loans may use either decimal or indicate year balloon payment is due (example: Balloon payment due on 61st payment can be disclosed as Year 6 Balloon Payment or Year 5.08 Balloon Payment).

Loan type (a)(11) Loan ID (a)(12)

Rate Lock (a)(13)

Conventional, VA, FHA, Other (includes RHD and USDA)

Required for all loans. Number issued by creditor to identify transaction (can be different than loan number). Same number must be used on Closing Disclosure. Loan ID number must be unique to transaction. May be alpha-numeric.

"No" if no written rate lock agreement. "Yes" if written rate lock agreement. Then include date lock is good through, time and time zone (Use "No" if bank merely has processes of honoring rate but no written agreement is in place) Also include date and time (including time zone) when estimated costs expire (at least 10 business days) For revised LEs, after consumer has indicated an intent to proceed, date and time for closing costs must be left blank.

Loan Amount (b)(1)

Loan Terms Amount requested on application (unless fees will be added to the loan amount, then disclose amount to be reflected on the legal obligation (i.e. note)) If can increase, state YES in the second column and information pertinent to the adjustment (include max principal balance and year/month of last adjustment. Also include statement whether max principal balance may/will occur under terms of legal obligation.)

Two decimal places unless whole number then omit "cents". Example: Loan amount is $10,000.00. Disclose as $10,000

Interest Rate (b)(2) and (b)(6) Monthly principal and interest (b)(3) Prepayment Penalty (b)(4) and (b)(7)

If variable, state Yes. For ARM, if initial rate is not known, use fully indexed rate If rate can increase, state YES in second column and information pertinent to the adjustment (frequency of adjustment, date of first adjustment, max interest rate, and date interest rate could reach max followed by reference to AIR Table)

Interest Rate - percentage disclosed by rounding exact amount to three decimal places then dropping trailing zeros after decimal point. Interest rate change after consummation rounded to nearest whole dollar.

If can change, state Yes and include frequency of adjustment of principal/interest, due date of first adjustment, max possible principal and/or interest payment, and date payment could reach max). If payment will adjust due to interest rate change, how often the payment will change, when the first change will occur and the highest interest possible at the first date possible. If adjustment not due to interest rate change, refer to AP table. If payment not monthly, adjust frequency accordingly (i.e. weekly, quarterly, semi-annually)

Round to two decimal places for payment. For adjustments, round to whole dollars.

Will be NO unless there is a minimum finance charge, then disclose YES. (Does not included waived third party Round to nearest whole dollar charges that creditor imposes if consumer prepays entire principal sooner than 36 months after closing).

Balloon Payment (b)(5)

If balloon (defined as payment greater than 2 times monthly payment), state YES and include maximum amount of balloon payment and due date

Round to nearest whole dollar

Projected Payments Table (c)(3)

Max of four columns. If more than four adjustments, use range in fourth column to reflect other adjustments. If triggering event (e.g. interest only, adjustable rate, balloon, MI termination, etc.)

may occur during life of loan, add column to show amount of periodic payment after triggering event (c)(1)(ii). Balloon Payment always requires own column if final payment. For ARM loans,

use all four columns reflecting frequency of rate change (even if payments are same). Example: 3/1 ARM = first column reflects 3 year period, 2nd column reflects first 1 year adjustment, 3rd

column reflects next 1 year adjustment and 4th column reflects years 6-end of loan term. Show range of payments when there are more triggering events than can be shown rounded to nearest

whole dollar, P & I payments may change more than once in single year (or may change at least once in the same year as the initial periodic payment, or if P & I may adjust based on interest

rate index/rate not yet known).

Principal and Interest (c)(2)(i)

Disclose initial periodic payment in 1st column and then adjusted P&I (or range) occurring from event

Round to two decimal places unless

triggering change (change in rate or cap; transition from interest-only to P&I ; scheduled balloon; termination disclosing as range. Then round to nearest

of MI)

whole dollars.

If payment/range of payments include any interest only payments, use phrase "Only Interest" under amount

of the payment or range of payments.

For ARM loans, use maximum payments assuming rate will rise as rapidly as possible, considering rate caps)

Mortgage Insurance (c)(2)(ii)

Estimated Escrow (c)(2)(iii) Estimated Total Monthly Payment (c)(2)(iv)

Estimated Taxes, Insurance and Assessments (c)(4)

Max amount of MI premiums corresponding to principal/interest payment (include even if not escrowed). If Round to nearest whole dollar no MI, disclose "0". After termination, disclose "-". For disclosure purposes, RD monthly guarantee fee is considered "MI"

Amount payable into escrow. If no escrow, disclose "0".

Round to nearest whole dollar

Sum of amounts disclosed in table. For periodic payments that increase based on adjustment of interest rate, Round to nearest whole dollar if payment

use max loan term possible under note terms.

includes either MI or Escrow. If payment is

just P&I (no MI or Escrow), then round to

two decimals (dollars and cents).

Disclose even if no escrow. Sum of property costs expressed as monthly amount. (taxes, hazard insurance, Round to nearest whole dollar flood insurance, coop charges, condo association fees, ground rent, leasehold payments, certain insurance premiums/charges required by lender). Bank cannot estimate - need to use best information reasonably available. Indicate if cost is escrowed with Yes/No. Use tax assessed value of real property or cooperative unit security transaction including value of improvements or construction, to the extent known, and replacement costs of property over first year (c)(5) Under heading "In Escrow" disclose yes or no. If both taxes/insurance are not escrowed, use "some". If more than one item listed as "Other" and all are not escrowed, use "Yes, Some".

Estimated Closing Costs Estimated Cash to Close

Standard Costs At Closing Table (d)(1) Amount calculated in same manner as Total Closing Costs disclosed on page 2 Same as Estimated Cash to Close from Calculating Cash to Close Table on page 2

Round to nearest whole dollar Round to nearest whole dollar

Alternate Costs At Closing Table (d)(1)

Can be used for transactions without a seller and simultaneous second lien loans (if first lien loan discloses entity of seller's transaction (d)(2) and (h)(2)).

Estimated Closing Costs

Amount calculated in same manner as Total Closing Costs disclosed on page 2

Round to nearest whole dollar

Estimated Cash to Close

Same as Estimated Cash to Close from Calculating Cash to Close Table on page 2.

Round to nearest whole dollar

Will include boxes for funds "from" or "to" borrower.

Page 2

Closing Cost Details

Loan Costs

Alphabetize each item. Title charges must start with "Title - "

A. Origination Charges (f)(1)

Points must always be listed first (fee paid to reduce interest rate). If no points paid, leave blank. Generally

Maximum of 13 items. If more than 13, include fees paid to lender or broker that are required by creditor. Can itemize to extent desired by creditor

disclose amounts that exceed 12 as EXCEPT LO comp paid directly by consumer, charges imposed for LLPA (Loan Level Price Adjustments), and

"Additional Charges"

points must be separately itemized. List in alphabetical order after "points".

Round to nearest whole dollar. For point percentage, round to three decimal places, dropping any trailing zeros to right of decimal.

B. Services You Cannot Shop For (f)(2) Services required by creditor and provided by party other than creditor or broker where provider is selected Maximum of 13 items. If more than 13, by creditor (appraisal, flood, credit report, 3rd party subordination, mortgage insurance, Title Guaranty, disclose first 12 and then total items lender's title insurance coverage, etc.). after 12 as "Additional Charges". Cannot use an addendum.

Round to nearest whole dollar

C. Services You Can Shop For (f)(3) Addendum may be used if more than 14 shoppable services.

D. Total Loan Costs (f)(4)

Services required by creditor that are provided by party other than creditor or broker where provider can be Round to nearest whole dollar selected by borrower. Each service must appear on Written List of Settlement Providers list (i.e. shopping list).

Total for sections A, B, and C

Round to nearest whole dollar

Other Costs

E. Taxes and Government Fees (g)(1) No additional items may be added

Fees not related to loan approval - no addendum is allowed.

List fee for recording and other taxes and transfer taxes if applicable (Do not itemize - one sum amount for Round to nearest whole dollar each) Fee related to Sale Price of property should be listed as Transfer Taxes (e.g. fee of $1,250 based on .5% of sale price). When creditor does not have contract of sale at time of LE, must use apportionment of transfer tax provided by State/local law or common practice.

F. Prepaids (g)(2) Maximum of three additional items

Defined as Fees due prior to first scheduled payment (Homeowners Insurance, MI, Prepaid Interest, Property Taxes) Include fee and # of months. NOTE: Not required to include hazard insurance if no payment is due such as with a refinance or home equity loan.

Round to nearest whole dollar Per-diem dollar amount is rounded to the nearest whole cent. Per-diem percentage rounded to three decimal places then dropping training zeros after decimal.

G. Initial Escrow Payment At Closing (g)(3) Maximum of five additional items

Items customer is expected to place into reserve or escrow account at consummation to be applied to recurring payments. If escrow is established, include reserves for homeowner's insurance, MI or property taxes, if applicable. (no aggregate adjustment shown)

Round to nearest whole dollar except monthly dollar amount for homeowner's insurance, MI and property taxes is rounded to nearest whole cent.

H. Other (g)(4)

Items in connection with transaction that consumer is likely to pay or has contracted with another person for Round to nearest whole dollar (if known by creditor at time of LE). May include owners title, credit life, home warranties, R/E broker or agent fees, Payments to seller for personal property, HOA/Condo charges, inspections. Indicate (optional) after fees for premiums for separate optional insurance or event-coverage products if purchase is optional by creditor. Indicate "Title-" for issuance of title insurance policies or other title related services. Do not include construction costs, payoffs of existing liens or payoffs of other debts in this section.

I. Total Other Costs (g)(5) J. Total Closing Costs (g)(6) D + I (g)(6)(i) Lender Credits (g)(6)(ii)

Calculating Cash to Close (h)(1)

Total of section E, F, G, and H

Round to nearest whole dollar

Total of sections D (Total Loan Costs) and I (Total Closing Costs) Total of general non-specific and specific lender credits.

Round to nearest whole dollar Round to nearest whole dollar - disclosed as a negative number.

The calculation and its components, such as the Down Payment/Funds For Borrower, are independent of and my differ from certain loan program or investor requirements.

Total Closing Costs (h)(1)(i)

Add: Items calculated in Section J (Total Closing Costs).

Closing Costs Financed (paid from loan) Subtract: Subtract payments to third parties (other than Loan Costs or Other costs) from Loan amount. If

(h)(1)(ii)

there are funds left over, compare that amount to Total Closing Costs and disclose smaller of the two. If

payments to third parties exceed Loan Amount, disclose $0.

Example: Loan amount is $200,000 and third party payments total $190,000. Total Closing Costs are $2,500.

There is $10,000 left over that could cover closing costs so disclose $2,500 even if some closing costs were

paid in cash or prior to closing.

Round to nearest whole dollar Round to nearest whole dollar

Down Payment/Funds from Borrower (h)(1)(iii)

Add: For Purchase transactions OTHER THAN simultaneous second lien, take Purchase price less the Loan Round to nearest whole dollar Amount (also subtract loans assumed or taken subject to). If result is positive, disclose that amount. If $0 or negative, disclose $0. (This amount will be reflected in Funds for Borrower).

For Purchase loan that is subordinate lien loan, involves improvements to be made on the property or where the sum of the Loan Amount and amounts taken subject to exceed the Sale Price, subtract the sum of the Loan Amount and loans taken subject to from the total of all debt being satisfied. If positive, disclose that amount. If negative or $0, disclose $0. (Amount will be disclosed in Fund for Borrower).

For non-purchase transactions, subtract Loan Amount from total of existing debts being satisfied. If positive, disclose that amount. If negative or $0, disclose $0. (This amount will be reflected in Funds for Borrower)

Deposit (h)(1)(iv) Funds for Borrower (h)(1)(v)

Subtract: Earnest money paid to seller or escrow by attorney or other party under terms of the contract for Round to nearest whole dollar sale of property.

For non-purchase transactions, disclose $0.

Subtract: For Purchase Transaction (Other than Simultaneous Second Lien Loan), a Purchase loan that

Round to nearest whole dollar

involves improvements made to property, or loan where Loan Amount (and loans taken subject to) exceeds

Sale Price, disclose that amount (should reflect as a negative number). If positive, disclose $0 (this amount

will be disclosed in Down Payment/Funds from Borrower section)

For all other transactions, subtract Loan Amount plus loans taken subject to from total amount of existing debt being satisfied. If negative, disclose as Funds for Borrower. If positive or $0, disclose $0. (This amount would be disclosed in Down Payment/Funds from borrower section.)

Seller Credits (h)(1)(vi)

Adjustments and Other Credits (h)(1)(vii) Estimated Cash to Close (h)(1)(vii)

Subtract: Sum of amounts seller will pay for items includes in Loan Costs and Other Costs table, to the extent Round to nearest whole dollar known. Includes non-specific or general seller credits and any specific seller credits not disclosed in the Loan Costs or Other Costs table.

Subtract: Gift funds, builder credits, grants, other loans, proration for property taxes and prorations for homeowner's association dues, etc.

Round to nearest whole dollar

Total of items listed above

Round to nearest whole dollar

* Alternative Cash to Close (h)(2)

*Optional for transactions without a seller and for simultaneous second lien loans in a purchase transaction if the CD for the first lien transaction will disclose all required information related to the seller.

Note: A creditor that uses the optional Alternative Calculating Cash to Close table for the LE must also used the alternative disclosure on Page 1 of the LE and the CD.

Loan Amount (h)(2)(i) Total Closing Costs (h)(2)(ii)

Loan amount requested

Round to nearest whole dollar

Subtract: Total from items in section J (Total Closing Costs). If Total Closings Costs are a negative number in Round to nearest whole dollar

section J, disclose as a positive number here.

Estimated Total Payoffs and Payments (h)(2)(iii)

Subtract: Total of payoff of existing mortgage, liens on property, other debts paid as condition of loan, and construction costs associated with the transaction that the consumer will be obligated to pay, and for transactions involving a first lien that involve simultaneous subordinate lien loan (as a positive number). If proceeds from simultaneous subordinate lien loan equal or exceed the total amount of other payoffs and payments, disclose as positive number. For simultaneous subordinate lien loan, may include the loan proceeds in the Payoffs and Payments table for that loan.

Round to nearest whole dollar

Estimated Cash to Close From/To Borrower (h)(2)(iv)

Sum of Loan amount, Total Closing Costs and Payoffs and Payments. Select appropriate box regarding if funds Round to nearest whole dollar are paid to or due from borrower.

Estimated Closing Costs Financed (Paid from your loan amount) (h)(2)(v)

Take Loan Amount and subtract Payoffs and Payments. If positive, disclose lesser of that amount or Total Closing Costs after subtracting fees paid prior to closing). If negative or $0, disclose $0. Example: Loan amount of $100,000 and Payoffs and Payments of $80,000. Total Closing Costs $5,000. Customer paid $500 prior to closing. Difference between Loan Amount and Payoffs and Payments is a positive $20,000 (funds left over to pay closing costs). Disclose $4,500 (Total Closing Costs less cost paid prior to closing) as lesser of the two.

Round to nearest whole dollar

ADJUSTABLE PAYMENTS (AP) TABLE - Use ONLY if payment adjustments NOT due to interest rate changes Example: Fixed rate loan with step payment feature not the result of interest rate change. May also be triggered for construction only or construction-perm loans with interest only payments that vary based on principal outstanding and construction-perm loans where payments change from interest only to principal and interest after construction phase. See Construction Loans tab

for table completion details.

Interest Only Payments? (i)(1) Optional Payments? (i)(2) Step Payments? (i)(3)

Seasonal Payments? (i)(4)

Monthly Principal and Interest Payments First change/Amount (i)(5)(i)

Subsequent Changes (i)(5)(ii) Maximum Payment (i)(5)(iii)

If loan includes interest only payments, indicate Yes and term (Ex: for your first 60 payments) If loan includes an optional payment stream, indicated Yes and include details If loan includes different payments unrelated to interest rate adjustments (Ex: Payments of $500 for first 12 months, then $600 for next 12, then $700 for remaining term)

Round to nearest whole dollar Round to nearest whole dollar Round to nearest whole dollar

If loan has seasonal payments, indicate Yes and include period during which the periodic payments are NOT Round to nearest whole dollar scheduled

"Monthly" label can be changed to reflect payment schedule such as Biweekly or Annual. Disclose any scheduled periodic payment that only covers

some or all of interest that is due and not any principal as "Monthly Principal and Interest Payments" as well.

Initial payment and highest payment at first change (Ex: Number of the payment that may change

Round to nearest whole dollar

$1,028 - $1,359 at 61 payment)

counting from first periodic payment due after

consummation, and amount or range of periodic

principal and interest payment for such payment.

(Ex: $1,028 - $1,359 at 61 payment)

Frequency of change (Ex: Every three years) Maximum payment under loan contract and timing (Ex. $2,068 starting at 169th payment)

Frequency of change (Ex: Every three years) Maximum payment under loan contract and timing (Ex. $2,068 starting at 169th payment)

Round to nearest whole dollar Round to nearest whole dollar

Index + Margin (j)(1)

Initial Interest Rate (j)(3)

Minimum/Maximum Interest Rate (J)(4) Change Frequency First Change (j)(5)(i)

Subsequent Changes (j)(5)(ii)

Limits on Interest Rate Changes First Change (j)(6)(i)

Subsequent Changes (j)(6)(ii)

ADJUSTABLE INTEREST RATE (AIR) TABLE - Use when loan's interest rate may increase after consummation.

Information should be consistent w/ ARM program disclosure

Disclose index used to set rate and disclose margin

Rounded to three decimal places then drop

trailing zeros after decimal

Disclose initial interest rate (if unknown, use fully indexed rate)

Include minimum rate and maximum rate under contract after any introductory period expires (floor and ceiling or rate at maximum adjustment)

Rounded to three decimal places then drop trailing zeros after decimal

Rounded to three decimal places then drop trailing zeros after decimal

State month first change will occur after consummation (Ex. Beginning of 37th month) State frequency of changes after initial adjustment (Ex. Every 12th month after first change)

Rounded to three decimal places then drop trailing zeros after decimal

Rounded to three decimal places then drop trailing zeros after decimal

Maximum change in index at first adjustment

Maximum change in index for subsequent changes. If loan does not state maximum, use interest rate that applies under applicable law (usury rate).

Rounded to three decimal places then drop trailing zeros after decimal

Rounded to three decimal places then drop trailing zeros after decimal

Page 3

Additional Information About This Loan

Lender (k)(1) NMLS/___License ID (k)(2) Loan Officer

Name of Creditor NMLS Number for Creditor Name of primary loan officer (same as LO on application) If unknown at time LE is issued, leave blank and add to revised LE at first opportunity

NMLS/___License ID Email (k)(3)

NMLS Number for Loan Officer. If none assigned, leave blank. Should be same as identified on note and other documents (1026.36(g))

Email address for primary loan officer. If none assigned, leave blank

Phone

Mortgage Broker NMLS/___License ID Loan Officer NMLS/___License ID Email

Phone number for primary loan officer (can be general number instead of direct line to MLO)

Name of Mortgage Broker if applicable NMLS ID for Mortgage Broker if applicable Name of secondary loan officer if applicable NMLS ID for secondary loan officer if applicable Email address for secondary loan officer if applicable

Phone

Phone number for secondary loan officer if applicable

Comparisons (l) In 5 Years (l)(1)

Annual Percentage Rate (APR) (l)(2) Total Interest Percentage (TIP) (l)(3)

Other Considerations (m) Appraisal (m)(1) Assumption (m)(2) Homeowner's Insurance (m)(3) Late Payment (m)(4)

Liability after Foreclosure (m)(7) Refinance (m)(5) Servicing (m)(6) Construction loans (m)(8)

Confirm Receipt (n)

Used for shopping Total principal, interest, MI and loan costs paid through end of 60th months after 1st periodic payment (include odd days interest paid at closing). May include balloon payment if 60th payment.

APR as calculated today (See 1026.22 and Appendix J 1026.37(l)(2))

Total interest paid over life of loan divided by loan amount (include prepaid interest consumer will pay exclude prepaid interest paid by another party). If prepaid interest is negative, include in calculation (deduction).

Round to nearest whole dollar

Rounded to three decimal places then drop trailing zeros after decimal Rounded to three decimal places then drop trailing zeros after decimal

Appraisal Notice Required under Reg. Z and Reg. B for first liens on 1-4 family dwellings. Omit if not applicable. Mark box indicating if the bank allows or doesn't allow assumptions

Include if bank requires homeowner's insurance for the loan. Omit if not applicable.

Disclose bank's late payment policy consistent with loan contract. If loan is to be sold to secondary market, do not disclose investor's late payment policy. They will do so after loan is sold.

Required only for refinance applications Indicates refinance is not guaranteed - borrower must qualify for refinance loan.

Indicate if creditor intends to service or transfer servicing of loan (as known at time of issuance)

If creditor expects that settlement will occur more than 60 days after the provision of LE due to new construction, at the creditor's option, include a statement that a revised LE may be issued any time prior to 60 days before consummation. (Note this is typically used on permanent loan LE for a two-phase construction to perm request).

No requirement to obtain a signature on the Loan Estimate. If creditor requires signature, must use Confirm Receipt section. If creditor does not require signatures, must still include statement: "You do not have to accept this loan because you have received this form and signed a loan application" in the Other Considerations table.

When credit is extended to a trust for tax/estate planning purposes, creditor may insert the trustee's name under the appropriate signature line with a designation that the trustee is serving in its capacity as trustee.

Accuracy OCS to 1026.37- #1

Loan Estimate Format Rules

Disclosure must reflect the terms of the legal obligation between the parties, and if any information necessary for an accurate disclosure is unknown to the creditor, the creditor shall make the disclosure in good faith, based on the best information reasonably available to the creditor. The "reasonably available" standard requires that the creditor, acting in good faith, exercise due diligence in obtaining information. For example, the creditor must at a minimum utilize generally accepted calculation tools, but need not invest in the most sophisticated computer program to make a particular type of calculation. The creditor normally may rely on the representations of other parties in obtaining information. For example, the creditor might look to the consumer for the time of consummation, to insurance companies for the cost of insurance, or to realtors for taxes and escrow fees. The creditor may utilize estimates in making disclosures even though the creditor knows that more precise information will be available by the point of consummation.

Use of Not Applicable OCS to 1026.37 - #1

Clear and conspicuous - in writing 37(o)(1)(i) and (ii) Headings and Labels 37(o)(2) Use of H-24 Form 37(o)(3)

Permissible changes 37(o)(5)-1

Manual Completion 37(o)(5)-2

Where a disclosure is not applicable to a particular transaction, unless otherwise provided by ? 1026.37, form H-24 of appendix H to this part may not be modified to delete the disclosure from form H-24, or to state "not applicable" or "N/A" in place of such disclosure. May be left blank, unless otherwise provided by ? 1026.37. Example, in a transaction for which the consumer does not pay points to the creditor to reduce the interest rate, the amounts required to be disclosed by ? 1026.37(f)(1)(i) may be left blank on form H-24. As provided in ? 1026.37(i) and (j), however, the adjustable payment and adjustable interest rate tables required by those paragraphs may be included only if those disclosures are applicable to the transaction and otherwise must be excluded.

General Requirements (1026.37(o)) Disclosures must be provided clearly and conspicuously in writing, in a form that the consumer may keep. The disclosures also must be grouped together and segregated from everything else. H-24 form requires word "Estimated" even if relevant provision of the rule does not expressly require or permit disclosure of the word "estimate". Example, rule required disclosure of total periodic payments labeled "Total Monthly Payments" but label on H-24 form includes designation "Estimated".

For federally related mortgage loans, the disclosures must be made using form H-24, set forth in appendix H to this part unless exception applies below, using headings, content, and format substantially similar to form H-24. H-24 form may be provided to the consumer in electronic form, subject to compliance with the Electronic Signatures in Global and National Commerce Act (15 U.S.C. 7001 et seq.).

For a non-federally related mortgage loan, the creditor is not required to use form H-24 , although its use as a model form for such transactions, if properly completed with accurate content, constitutes compliance with the clear and conspicuous and segregation requirements. Even when the creditor elects not to use the model form, the disclosures must be grouped together and segregated from everything else; contain only the information required in the rule; and be provided in the same order as they occur in form H-24, using the same relative positions of the headings, labels, and similar designations as shown in the form. In addition, the creditor must include the designation of "estimated" for all headings, subheading, labels, and similar designations required as shown on H-24 . The disclosures required by ? 1026.37 comply with the requirement to be in a format substantially similar to form H-24 when provided on letter size (8.5" x 11") paper.

Exceptions The changes required or permitted are permitted for federally related mortgage loans for which the use of form H-24 is required. Any changes to the disclosure not specified in this section or not permitted by other provisions of ? 1026.37 are not permissible for federally related mortgage loans. F or nonfederally related mortgage loans, the changes required or permitted do not affect the substance, clarity, or meaningful sequence of the disclosure and therefore, are permissible. Creditors in non-federally related mortgage loans making any changes that affect the substance, clarity, or meaningful sequence of the disclosure will lose their protection from civil liability under TILA section 130.

Section 1026.37(o) does not require the creditor to use a computer, typewriter, or other word processor to complete the disclosure form. The information and amounts required to be disclosed by ? 1026.37 on form H-24 of appendix H to this part may be filled in by hand printing or using any other method, provided the information is clear and legible and complies with the formatting required by form H-24, including replicating bold font where required.

Contact Information with multiple creditors/brokers 37(o)(5)-3

Contact information on form H-24 in the Other Considerations section may be altered to add additional labels to accommodate the additional information of such parties, provided that the information in the Comparisons, Other Considerations, and Signature Statement are disclosed on the same page. If the space provided does not allow for the disclosure of such contact and other information on the same page, an additional page may be added to provide the required contact information with an appropriate reference to the additional page.

Unit-Period Exceptions 37(o)(5)(i)-4

Translation Exceptions 37(o)(5)(ii)-6

Additional Page 37(o)(5)-5

Logo/Slogan Exceptions 37(o)(5)(iii) Business Card Exceptions 37(o)(5)(iv)

Wherever the form or this section uses "monthly" to describe the frequency of any payments or uses "month" to describe the applicable unit-period, the creditor is required to substitute the appropriate term to reflect the fact that the transaction's terms provide for other than monthly periodic payments, such as bi-weekly or quarterly payments.

The form may be translated into languages other than English, and creditors may modify form H-24 to the extent that translation prevents the headings, labels, designations, and required disclosure items under this section from fitting in the space provided on form H-24. For example, if the translation of a required label does not fit within the line provided for such label in form H-24, the label may be disclosed over two lines. See form H-28 of appendix H to this part for Spanish translations of form H-24.

Information required or permitted to be disclosed by ? 1026.37 on a separate page should be formatted so as not to affect the substance, clarity, or meaningful sequence of the disclosure. In addition, information provided on additional pages should be consolidated on as few pages as necessary to not affect the substance, clarity, or meaningful sequence of the disclosure.

The creditor providing the form may use a logo for, and include a slogan with the creditor name and address in any font size or type, provided that such logo or slogan does not cause the information required to exceed the space provided for that information.

The creditor may physically attach a business card over the creditor name and address.

Administrative Information Exceptions The creditor may insert at the bottom of each page under the disclosures any administrative information, text, or codes that assist in identification of the

37(o)(5)(v)

form or the information disclosed on the form, provided that the space provided for any of the information required is not altered.

Rounding Rules Comment 37(o)(4)-2

General Rule (see specific requirements for line items within guide): If an amount is required to be rounded but is composed of other amounts that are not required or permitted to be rounded, use the unrounded amounts in calculating the total and then round the final sum. Conversely, if an amount is required to be rounded and is composed of rounded amounts, use the rounded amounts in calculating the total.

Percentage amounts are disclosed by rounding to three decimals and then dropping any trailing zeros that occur to the right of the decimal place, except where otherwise noted in the TILA-RESPA Rule.

Rev. 9/12/19

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