Jump to main content

# How does Payment Attributable to Borrower impact the Loan Estimate and Closing Disclosure?

Payment Attributable to Borrower will appear on fee details when Section is Taxes and Other Government Fees and Transfer Taxes is selected in the application phase. Payment Attributable to Borrower is used to indicate transfer taxes that the borrower is liable for and should be prepared to pay in the transaction, and that must be disclosed on the Loan Estimate. Who is responsible for paying the transfer tax is based on applicable state or local laws.

For example, state law may indicate that transfer taxes are always to be paid by Borrower and through negotiation the Seller agrees to pay the transfer tax. You will need to determine the amount of transfer taxes that is attributable to the borrower and must be disclosed on the Loan Estimate.

Scenario 1

A fee that has Transfer Tax and Payment Attributable to Borrower selected that is paid by Seller will print in section E. Taxes and Other Government Fees, on the Transfer Taxes line, of the Loan Estimate. In addition, the amount of the fee will be included in Seller Credits under Calculating Cash to Close.

Scenario 2

A fee paid by Borrower that has Transfer Tax selected and Payment Attributable to Borrower not selected will not print anywhere on the Loan Estimate.

Payment Attributable to Borrower does not have an impact on the Closing Cost Details section of the Closing Disclosure. The transfer tax disclosed in section E. Taxes and Other Government Fees on the Closing Disclosure will be disclosed in the appropriate column (i.e., Borrower-Paid, Seller-Paid or Paid by Others) based on the Paid By selection from the Fee Details page. If Payment Attributable to Borrower was selected in the application phase for a transfer tax that applies at closing, the transfer tax amount will be included in Total Closing Costs (J) (Loan Estimate column) of the Calculating Cash to Close table. This means that the transfer tax will be factored into the Did this Change? comparison, and also into the tolerance comparison, based on Variance Type.