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# Closing Disclosure Overview

The Closing Disclosure page is used to complete the following Summaries of Transactions sections on the Closing Disclosure:

- K. Due from Borrower at Closing
- L. Paid Already by or on Behalf of Borrower at Closing
- M. Due to Seller at Closing
- N. Due from Seller at Closing

An example of when you would use this page is to document excess funds from the borrower that are not disbursed to the seller; such as funds saved by the borrower, funds to be added to the amount borrowed, or funds from a simultaneous second.

You will need to select the appropriate Integrated Disclosure Subsection, so that the item is placed on the correct line of the Borrower’s or the Seller’s column. Leaving the Integrated Disclosure Subsection blank (if this option is available) places the item on an available line within the specific Integrated Disclosure Section (or on the overflow page, if applicable).

Items indicated as paid before closing will print with a notation 'P.O.C.' and will be excluded from the calculated totals.

Selecting Contractual Adjustment for an adjustment with the Integrated Disclosure Section of 'Due From Borrower at Closing' means that a corresponding entry will appear in the M. Due to Seller at Closing section.

Selecting Existing Debt Being Satisfied for an adjustment indicates that the item should be included in the calculation of Funds from Borrower/Funds for Borrower in the Calculating Cash to Close table of the Closing Disclosure when this document is used for transactions without a seller.

The Prorations section allows you to enter amounts that are considered adjustments for various items that are paid on a periodic basis and may be due at closing from or to the borrower or the seller, as applicable. They complete the following subsections of the Summaries of Transactions table:

- Adjustments for Items Paid by Seller in Advance
- Adjustments for Items Unpaid by Seller

When Adjustments for Items Paid by Seller in Advance is selected, the proration item will appear in the Adjustments for Items Paid by Seller in Advance subsection of K. Due from Borrower at Closing (with a corresponding entry in M. Due to Seller at Closing). This will increase the amount due from the borrower at closing and increase the amount given to the seller at closing. These prorations will also be reflected in the Adjustments and Other Credits row of the Calculating Cash to Close table, increasing the Cash to Close amount from the borrower or decreasing the Cash to Close amount to the borrower.

When you select Adjustments for Items Unpaid by Seller, the proration item will appear in the Adjustments for Items Unpaid by Seller subsection of N. Due from Seller at Closing (with a corresponding entry in L. Paid Already by or on Behalf of Borrower at Closing). This will print the amount as a credit to the borrower at closing which would reduce the amount due from the borrower and reduce the amount to the seller at closing. These prorations will also be reflected in the Adjustments and Other Credits row of the Calculating Cash to Close table, decreasing the Cash to Close amount from the borrower or increasing the Cash to Close amount to the borrower.

Prorations paid before closing are disclosed in the Summaries of Transactions table with the 'P.O.C.' designation and are not included in the section totals within the Summaries of Transactions table. Prorations paid at closing are included in the section totals within the Summaries of Transactions table and also in the Adjustments and Other Credits row of the Calculating Cash to Close table.