Sections A-I: Lender’s name and address, settlement agent info, buyer’s loan type, settlement date and property address.
Section L: Settlement Charges
Section 700: Agency Commissions
Section 900: Items Required by Lender to be Paid in Advance l Line 902: mortgage insurance premiums due at settlement. l Line 903: hazard insurance premiums paid at settlement for immediate insurance on the property. l Lines 904 and 905: miscellaneous items possibly collected by the lender, such as flood insurance, mortgage life insurance, credit life insurance and disability insurance premiums.
Section 1000 – Reserves Deposited with Lender l Itemization of funds collected from the borrower by the lender for costs like those in section 900, but lines 1001-1007 are used to start the borrower’s escrow account, from which the lender will pay the following year’s premiums. l Line 1008: escrow adjustment to make sure the lender is not collecting more escrow funds than are allowed.
Section 1100 – Title Charges
- Includes title examination, title search, document preparation, title insurance fees and closing agent and notary fees. l Line 1101: settlement agent’s fee. l Lines 1102 and 1103: abstract or title search and examination fees. l Line 1104: title insurance binder charges (also called a commitment to insure). l Line 1105: deed preparation fees. l Line 1106: Notary public’s fee for authenticating the execution of the settlement documents. l Line 1107: attorney’s fees. l Line 1108: total title insurance charge less the cost of the binder. l Lines 1109 and 1110: informational lines that disclose the costs for the separate title insurance policies for borrower and lender. l Lines 1111-1113: any other title-related charges.
Section 1200 – Government Recording and Transfer Charges
Sections 1300 & 1400 – Additional Settlement Charges and Totals l Section 1300: survey and inspection fees. l Line 1400: total settlement charges paid from borrower’s and seller’s funds.
Section J, Summary of Borrower’s Transaction
Section 100, Gross Amount Due from Borrower
- Line 101: property gross sales price.
- Line 102: Charges for personal property (i.e., draperies, washer, dryer, outdoor furniture, and decorative items being purchased from the seller).
- Line 103: borrower’s total settlement charges brought forward from Line 1400.
- Lines 104 and 105: amounts owed by the borrower or previously paid by the seller.
- Lines 106-112: items for which the seller has paid in advance.
- Line 120: gross amount due from borrower.
Section 200, Amounts Paid By or In Behalf of Borrower
- Line 201: buyer’s credit in the amount of earnest money paid when the offer was accepted.
- Line 202: the amount of the new loan, which is being paid to the borrower by the lender.
- Line 203: used when loan is assumed by the borrower or taking title subject to an existing loan or lien on the property.
- Lines 204-209: miscellaneous items paid by or on behalf of the buyer.
- Lines 210-219: bills the seller has not yet paid.l
- Line 220: total of all items in Section 200.
- Line 301: total amount due from the borrower.
- Line 302: summary of all items already paid by or for the borrower.
- Line 303: the difference between lines 301 and 302.
Section K, Summary of Seller’s Transaction
Section 400, Gross Amount Due to Seller
- Line 401: gross sales price of the property.
- Line 402: personal property.
- Lines 404-405: other amounts owed by the borrower or previously paid by the seller.
- Lines 406-412: items the seller has paid in advance.
- Line 420: gross amount due to the seller.
Section 500, Reductions in Amount Due to Seller
- Line 501: the seller’s real estate broker or another party holds the borrower’s earnest money deposit and will pay it directly to the seller.
- Line 502: from Line 1400, the seller’s total charges as computed in Section L.
- Line 503: If borrower is assuming or taking title subject to existing liens which are deducted from the sales price.
- Lines 504-505: any first and/or second loans to be paid off as part of settlement.
- Lines 506-509: miscellaneous entries.
- Line 506: deposits paid to the seller by the borrower who is not the settlement agent.
- Lines 510-519: bills the seller owes but has not yet paid.
- Line 520: total for all items in Section 500.
Section 600, Cash at Settlement To/From Seller
- Line 601: gross amount due to the seller.
- Line 602: total of reductions in seller’s proceeds.
- Line 603: the difference between lines 601 and 602, indicating a cash amount paid to seller.