The following are general rules to follow when the loan is not a No Cost transaction. In the No Cost transaction scenario, all fees must be paid by the lender, collected as cash, and not paid outside of closing (POC). In addition, there is no offsetting the lender-paid portion in the 200 series on page 1 of the HUD1.
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Lender or Third Party PAC |
Lender or Third Party POC |
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GFE |
HUD |
GFE |
HUD |
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Disclosed on GFE in an applicable block** |
Included in the assigned Block and Subsequent Totals |
Page 2 in the Borrowers Column, Page 1 offset in the 200 Series |
Included in the assigned Block and Subsequent Totals |
To the left of the Borrowers column as POCl or POCt and not included in the Totals. |
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Not Disclosed on GFE (Block Assignment = ‘Not Applicable’ * |
Not included on the GFE |
Will not be included on Page 1 or 2 of the HUD. Will print to the Comparison Chart based on the Service Provider Selection. |
Not included on the GFE |
To the left of the Borrowers column as POCl or POCt and not included in the Totals. |
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Seller PAC |
Seller POC |
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GFE |
HUD |
GFE |
HUD |
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Disclosed on GFE in an applicable block** |
Included in the assigned Block and Subsequent Totals |
Page 2 in the Borrowers Column, Page 1 offset in the 200 & 500 Series |
Included in the assigned Block and Subsequent Totals |
To the left of the Borrowers column as POCs and not included in the Totals. |
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Not Disclosed on GFE (Block Assignment = ‘Not Applicable’ * |
Not included on the GFE |
Page 2 in Sellers Column |
Not included on the GFE |
To the left of the Borrowers column as POCs and not included in the Totals. |
* Any fee in Block 4 or 5 must be disclosed on the GFE regardless of who is paying it. Any fee typically paid by the borrower must be disclosed on the GFE regardless of who is paying it.
** Please refer to the GFE Block Reference in this document for applicable Block Assignments based on the HUD line number.
Fees will print and total on the GFE based on the GFE Block Assignment regardless of who is paying the fee. A POC designation for a fee has no affect on the GFE because , it is a closing item, and therefore is ignored for GFE purposes. Additionally, the service provider selection has no affect on the GFE, this is a closing item as well, and the fee will appear in the comparison chart based on the service provider selection chosen at closing time.