How are Seller Credits disclosed on the Loan Estimate?

Seller Credits is the sum of Specific Seller Credits and Generalized Seller Credits. Specific Seller Credits is a sum of all fees that are paid by the seller. Generalized Seller Credits is a lump sum amount of funds given by the seller to the consumer for closing costs or for allowances for items purchased separately.

In regards to specific seller credits, you can choose to disclose them on the Loan Estimate or not disclose. See the commentary to §1026.37(h)(1)(vi) for additional details.

• If you do disclose them on the Loan Estimate, any fee that will be paid by the seller is entered in the Fees section within the application phase, and Seller is selected for Paid By. This will include the fee(s) in Loan Costs and/or Other Costs on page 2 of the Loan Estimate and a corresponding credit is included in Seller Credits within the Calculating Cash to Close table.
• If you do not disclose them on the Loan Estimate, any fees paid by the seller are not entered in the Fees section until the transaction is in the closing phase.