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completing loan estimate

Terms in this set (127)

Under the Taxes and Other Government Fees subheading, disclose Recording Fees and Other Taxes first and Transfer Taxes second.

Recording Fees and Other Taxes are fees assessed by a government authority to record and index the loan and title documents as required under State or local law, together with any charges or fees imposed by a State or local government that are not Transfer Taxes. Recording Fees and Other Taxes do not include fees that are based on the Sale Price of the Property or Loan Amount.

Example: A fee for recording a subordination that is $20, plus $3 for each page over three pages is included as Recording Fees and Other Taxes; but a fee of $1,250 based on 0.5% of the Loan Amount is included as Transfer Taxes, and not included as Recording Fees and Other Taxes.
Transfer Taxes are State and local government fees on mortgages and home sales that are based on the Loan Amount or Sale Price of the Property. The name that is used under State or local law to refer to these amounts is not determinative of whether or not they are disclosed as Transfer Taxes on the Loan Estimate.Disclose only Transfer Taxes paid by the borrower on the Loan Estimate. Whether the borrower pays the transfer tax is based on applicable State or local law.

Example: If a State law indicates a lien can attach to the borrower's acquired property if the charge is not paid, the amount is included as part of Transfer Taxes;
If State or local law is unclear or does not specifically attribute the amount to the seller or borrower, disclose the amount apportioned to the borrower using common practice in the locality of the property.
However, transfer taxes to be paid by the seller are not disclosed on the Loan Estimate as Transfer Taxes.

The amount of Transfer Taxes disclosed could be modified to the extent the lender has knowledge of the apportionment of transfer taxes in the contract for sale between the borrower and a seller when it issues the Loan Estimate. When a lender does not have the contract of sale when it issues the Loan Estimate, the lender must use the apportionment of transfer taxes provided for by State or local law, or common practice when State or local law is unclear.

Disclose the sum of all transfer taxes paid by the borrower as Transfer Taxes. No additional items may be listed or deleted in the Taxes and Other Government Fees category.
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