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Introducing the New Closing Disclosure
Glossary
Process as of August 1, 2015
The TILA-RESPA rule consolidates four existing disclosures required under TILA and RESPA for closed-end credit transactions
secured by real property into two forms: a Loan Estimate that must be delivered or placed in the mail no later than the third
business day after receiving the consumer’s application, and a Closing Disclosure that must be provided to the consumer at least
three business days prior to consummation.
Page 1
Page 1 of 5 provides a summary of the key loan terms and costs. The design separates figures that show the basic loan terms
(e.g., the principal and interest payment and loan costs) from figures that provide consumers with affordability information (e.g.,
the total monthly payment and cash required to close).
1. Closing Information
Important Dates, Settlement Agents, Property
Address and value.
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2. Transaction Information
Shows who is involved in the transaction: Borrowers,
Sellers, Lenders.
3. Loan Information
4
Shows Terms, Purpose, and general loan information.
4. Loan Terms
Shows the basic terms of the loan and whether they
may increase or change.
5. Projected Payments
Shows affordability information, including how and
when principal and interest payments can change
over time, the estimated taxes and insurance for the
property, and the total monthly payment, including
if taxes and insurance payments are escrowed or
excluded from the loan payment.
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6. Costs at Closing
Shows the costs for the mortgage as well as how
much the borrower will need to bring to closing, or
will be receiving from the closing.
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This is a five page summary of some of the major changes coming with the implementation of the TILA/RESPA
Integration Disclosure. For full details, please refer to the reference material available on the CFPB website.
New Penn Financial NMLS# 3013. Equal Housing Lender. ©2015 New Penn Financial, LLC. All rights reserved.
3
Page 2
Page 2 of 5 itemizes the costs associated with the loan and with the real estate transaction. “A” through “J” look familiar, that’s
because they correspond with page two of the old HUD-1.
These sections are designed to give a breakdown of the cost of services provided to complete the loan.
7. Origination Charges
This includes all fees to originate and underwrite
the loan.
8. Services Borrower Did Not Shop For
These are the requirements for this mortgage, that
the borrowers can not choose on their own.
9. Services Borrower Did Shop For
Lists the costs that the borrower is responsible
for, but they can choose their own provider. If they
choose one that is not on the Settlement Service
Provider List then the fees are not held to tolerance.
10. Taxes and Other Government Fees
This will vary depending on the transaction type
and state.
11. Prepaids
Any service that has a payment due within 60 days
of closing.
12. Initial Escrow Payment at Closing
This will set up the escrow account if escrowing.
13. Other
All other fees associated with this transaction.
This is a five page summary of some of the major changes coming with the implementation of the TILA/RESPA
Integration Disclosure. For full details, please refer to the reference material available on the CFPB website.
New Penn Financial NMLS# 3013. Equal Housing Lender. ©2015 New Penn Financial, LLC. All rights reserved.
Page 3
Page 3 of 5 resembles the 1st page of the old HUD-1 and is the cash to close and general summary of the costs of the borrower
and the seller(purchase only) It also allows the borrower to compare the fees to the Loan Estimate.
14. Calculating Cash to Close
This will compare the costs to the Loan Estimate for
the borrower to address any discrepancies.
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15. Borrower’s Transaction
This summarizes the borrower’s side of the
loan transaction.
16. Seller’s Transaction
This summarizes the seller’s side of the
loan transaction.
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17. Cash to Close
This is the cash to/from the borrower, and to/from
the seller.
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This is a five page summary of some of the major changes coming with the implementation of the TILA/RESPA
Integration Disclosure. For full details, please refer to the reference material available on the CFPB website.
New Penn Financial NMLS# 3013. Equal Housing Lender. ©2015 New Penn Financial, LLC. All rights reserved.
Page 4
Page 4 of 5 has additional information about the loan, including the borrower’s escrow information.
18. Loan Disclosures
• Assumption Information
• Demand Features
• Late Payment Information
• Negative Amortization Information
• Partial Payment Information
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19. Security Interest
This reiterates the property that the mortgage is
secured against.
20. Escrow Account
If taxes and/or insurance are being escrowed, this are
gives the borrower information on the payments over
the 1st year, the monthly payment and what will be
collected at closing to set up the escrow account.
19
This is a five page summary of some of the major changes coming with the implementation of the TILA/RESPA
Integration Disclosure. For full details, please refer to the reference material available on the CFPB website.
New Penn Financial NMLS# 3013. Equal Housing Lender. ©2015 New Penn Financial, LLC. All rights reserved.
Page 5
Page 5 of 5 will tell the borrowers where they can go to get their questions answered and the loan calculations that are going to
show them the true figures. They will be required to sign and acknowledge at the bottom.
21. Loan Calculations
This shows the borrower the breakdown of their
payments over the life of the loan. It includes the
APR and the Total Interest Percentage.
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22. Other Disclosures
• Appraisal Disclosure
• Contract Details
• Liability after Foreclosure
• Future Refinance Ability
• Tax Deduction Disclosure
23. Contact Information
Includes ALL individuals and companies involved in
the transaction.
24. Confirm Receipt
This is for the borrower’s to ONLY confirm that they
received this form.
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This is a five page summary of some of the major changes coming with the implementation of the TILA/RESPA
Integration Disclosure. For full details, please refer to the reference material available on the CFPB website.
New Penn Financial NMLS# 3013. Equal Housing Lender. ©2015 New Penn Financial, LLC. All rights reserved.