How do I document prorations on the Closing Disclosure?

When entering a proration, such as prorated County Property Taxes, follow the process below:
  1. On the Closing Disclosure page in the Prorations section, click the button to add a new Proration item.
  2. Select the description in Proration Item.
  3. Select an option in Integrated Disclosure Subsection.

    Adjustments for items paid by seller in advance: Selecting this option will print the proration in section "K. Due from Borrower at Closing" of the Summaries of Transactions table and will list the amount as money that would increase the amount due from the borrower at closing and increase the amount to the seller at closing. The amount will be a positive value (charge) in the “Adjustments and Other Credits” line of the Calculating Cash to Close table, increasing the Cash to Close amount from the borrower.

    Adjustments for items unpaid by seller: Selecting this option will print the proration in section “L. Paid Already by or on Behalf of Borrower at Closing” of the Summaries of Transactions table and will list the amount as a credit to the Borrower at Closing which would reduce the amount due from the borrower at closing and reduce the amount to the seller at closing. The amount will be a negative value (credit) in the “Adjustments and Other Credits” line of the Calculating Cash to Close table, decreasing the Cash to Close amount from the borrower.

  4. Enter the proration dollar amount.
  5. In When Paid, select At Closing.

    Selecting At Closing will print the proration in the Summaries of Transactions table and will be included in the “Adjustments and Other Credits” of the Calculating Cash to Close table. Selecting Before Closing will print the proration in the Summaries of Transactions table. It will not be included in the “Adjustments and Other Credits” of the Calculating Cash to Close table.

  6. If the proration occurred before closing, in the Paid By drop-down select Seller.

    Selecting Seller will print the proration in the applicable section of Borrower’s Transaction and Seller’s Transaction columns of the Summaries of Transactions table. The Proration will not print anywhere on the Closing Disclosure if another option (Buyer, Lender or Third Party) is selected.