Complete the Fees Worksheet to itemize fees that populate the aggregate charges on the Loan Estimate.
To complete the Fees Worksheet:
1. Open a borrower or prospect file.
2. Open the Fees Worksheet from the Forms menu or the shortcut toolbar.
The screen is divided into blocks that correspond to the blocks on the Good Faith Estimate and the Loan Estimate.
3. To prevent fees disclosed on the Loan Estimate from automatically adjusting if the loan amount is changed, select the Freeze fees on the Loan Estimate with the disclosed loan amount check box.
The disclosed loan amount and sales price are populated in the corresponding fields.
The fees on the Closing Disclosure are based on those amounts unless you unlock the fee field and change it manually.
4. Select the Disclosure Type from the dropdown list.
This section indicates to closing documents and compliance companies during the data export whether the TRID or GFE Disclosures are used. The default setting is TRID.
5. Enter the Date Prepared.
6. Select the applicable check box to specify whether to disclose the loan by using the Standard Form or the Alternative Form for the Cash-to-Close table. Standard Form is the default selection.
Select the Confirm Receipt check box to include a signature line on the printed form.
If the check box is not selected, a line for the borrower's signature is not included on the printed form.
8. Complete the Loan Information section. Most of the fields are automatically populated from other screen.
9. Complete the Company Names section.
If you select the Use check boxes, the broker, lender, and investor names are automatically populated when the corresponding Paid To option is selected when entering addition loan charges.
For example, if you select Broker from the Paid To dropdown list when specifying the loan origination fee, the Company Name field is automatically populated withe the company that was entered in the Use for "Paid To" Broker Company Name field in the Company Names section.
If you click the Check All Financed button, the financed (FIN) indicator is selected for all fees to indicate that they are included in the loan amount. The button label changes to Uncheck All Financed when clicked. You can also select each fee individually as applicable.
Note: The total amount of the selected fees is shown in the TOTAL FIN field. However, this amount is not added to the loan amount that is calculated by Point. You must adjust the loan amount separately.
10. Complete the Origination Charges section.
a. Specify the Loan Discount.
i. Select who is to receive the payment (Broker, Broker Affiliate, Lender, Lender Affiliate, Investor, or Other) for the fee from the Paid To dropdown list.
ii. If not pre-populated, enter the company name of the payment recipient in the Company Name field.
iii. Enter the fee as a percentage of the loan amount, a dollar amount, or both in the applicable fields.
The Amount field is automatically populated.
Note: To override the calculated value, click the lock box next to the Amount field to enable the field and enter a new value.
iv. If the borrower is not the payer or there is more than one payer, click the Borrower button to complete the Fee Distribution Worksheet.
Note: When you open a file that was originated in an earlier version of Point for the first time in a more recent version, the buttons automatically default to the selection that was previously made in the file.
v. Specify whether the discount is a prepaid finance charge (PFC), FHA-allowable (F), paid outside of closing (POC), financed (FIN), or included in the total points and fees calculation (QM).
Prepaid Finance Charge (APR Items)
The fees are included in the calculation of the Annual Percentage Rate (APR) and the total amount is populated in the Truth-In-Lending Disclosure.
FHA Allowable
The item is an FHA-allowable closing cost and affects what can be charged to the borrower or financed in the loan.
Paid Outside of Closing
Fees that are not included in the total estimated settlement charges calculation.
Financed
Fees that are included in the total loan amount. Applicable to the Good Faith Estimate.
Qualified Mortgage
Fees that are included in the QM total points and fees calculation.
vi. If any discount points are bona fide, select the State Bona Fide check box and enter the bona fide percentage in the % field.
vii. Enter the Starting Adjusted Rate and the Discount/Rebate for Starting Rate.
b. Enter the borrower Credits.
i. Enter a description of the credit.
ii. Enter the credit as a percentage of the loan amount, a dollar amount, or both in the applicable fields.
The Amount field is automatically populated.
Note: To override the calculated value, click the lock box next to the Amount field and enter a new value.
iii. Select the check box to specify whether the credit is prepaid (PFC).
iv. Select the Copy as a Lender Credit to 1003 Line L check box to copy the credit to the Loan Application as a lender credit when applicable.
c. Enter an loan-level pricing adjustments.
i. Select the fee type from the dropdown menu or enter on manually.
ii. Select who is to receive the payment (Broker, Broker Affiliate, Lender, Lender Affiliate, Investor, or Other) for the fee from the Paid To dropdown list.
iii. If not pre-populated, enter the company name of the payment recipient in the Company Name field.
iv. Enter the amount in the Amount field.
v. If the borrower is not the payer or there is more than one payer, click the Borrower button to complete the Fee Distribution Worksheet.
Note: When you open a file that was originated in an earlier version of Point for the first time in a more recent version, the buttons automatically default to the selection that was previously made in the file.
vi. Specify whether the payment is a prepaid finance charge (PFC), FHA-allowable (F), paid outside of closing (POC), financed (FIN), or included in the total points and fees calculation (QM).
d. Complete the remaining fees in this section.
i. Select who is to receive payment (Broker, Broker Affiliate, Lender, Lender Affiliate, Investor, or Other) for the fee from the Paid To dropdown list.
ii. If not pre-populated, enter the company name of the payment recipient in the Company Name field.
iii. Enter the fee as a percentage (%) of the loan amount, a dollar amount ($), or both, depending on the available fields for that fee.
The Amount field is automatically populated.
Note: To override the calculated value, click the lock box next to the Amount field to enable the field and enter a new value.
e. If a payer is not specified, click the Borrower button to complete the Fee Distribution Worksheet.
The button label changes to indicate the payer of the fee. If more than one payer is responsible for the fee, the button label changes to Multiple.
f. Specify whether the payment is a prepaid finance charge (PFC), FHA-allowable (F), paid outside of closing (POC), financed (FIN), or included in the total points and fees calculation (QM).
g. Enter any additional fees in the empty fields.
h. To include the lender paid compensation to the broker, select the Include Lender-Paid Compensation to broker in the Total Settlement Charges check box.
Note: It is not required to disclose lender-paid compensation on the Loan Estimate, but it is on the Closing Disclosure. Therefore, it is not necessary to select this check box when disclosing the Loan Estimate. However, the value is not included in the QM calculation when the check box is not selected.
The value is calculated on the Good Faith Estimate when selected.
i. Complete the fields below the check box to specify the broker compensation.
Select the fee name from the Description dropdown list, select Broker from the Paid To dropdown list, and complete the remaining fields as needed.
11. Complete the fees for the Services you cannot shop for section as described in Step 10.
This section itemizes the services and fees that the loan originator selects and requires the borrower to use.
Enter user-defined fees in the empty spaces provided.
12. Complete the Services you can shop for section as described in Step 10.
This section contains the title services and lenders title insurance fees.
a. If the borrower selects a single provider that is not from the list of providers for all services in the section, select the A Single Provider for GFE Section 4 Fees check box. Used with the Good Faith Estimate.
b. If the borrower selected more than one of their own providers to provide the title services, select the Shopped check box for each service they selected.
c. To calculate the closing/escrow and lender' title insurance fees by using the escrow and title tables that were set up in the Utilities > Escrow Tables (or Title Tables), click the lock box next to the Amount field to enable the corresponding button.
For information on completing the escrow and title tables refer to knowledgebase article 0142 Completing the Title and Escrow tables.
d. Click the Closing/Escrow Fee or Lender's Title Insurance button to open the corresponding list of tables.
e. Select a table from the list and click OK.
The amount is automatically populated in the Amount field.
f. Select the Print additional fees borrower can shop for on addendum check box to print additional fees in the Loan Costs section on the addendum when the number of fees exceeds the 13 allowed on the printed form. A line item that indicates the addendum is used is entered in Section C. Services You Can Shop For on the Loan Estimate screen.
13. Complete the Taxes and Other Government Fees section.
a. Enter the deed and mortgage recording fees as described in Step 10.
b. To itemize these fees separately from the mortgage or deed total value, select the Exclude from "Mortgage" or Exclude from "Deed" checkbox, as applicable.
c. Enter user-defined fees in the empty fields.
d. Enter the remaining taxes that the lender requires to be paid in advance to the impound account.
i. Enter the tax information manually or calculate it by using the tax tables that were set up in Utilities > Dropdown Lists.
When the lock box next to the Mortgage field is selected, the fields for that tax are enabled. Click the lock box again to enable the corresponding button to access a tax table.
ii. Click the button to open the Rates Calculation dialog box for that tax.
iii. Select the predefined tax from the Description dropdown list.
The mortgage and deed information for that tax is populated in the respective fields.
iv. Click OK to exit the dialog box.
v. Repeat for additional taxes.
14. Complete the Prepaids section.
a. To override the number of days that were specified in the company utilities, select the number of days from the Days/Year dropdown list.
Caution: If you override the number of days in a year, the change will also affect calculations on the Truth-In-Lending screen and the APR.
b. Enter how many days of interest must be paid in advance in the days field.
The Amount field is automatically populated.
For prepaid interest, interest is paid for the remainder of the current month. The amount is calculated based on the number of days per year that is set.
c. Enter the hazard insurance premium manually or click the Hazard Insurance Premium button to calculate it by using the tables that were set up in Utilities > Dropdown Lists > Hazard Insurance.
i. Select what is used to calculate the premium from the dropdown list.
The value for the selection option is populated in the field below the dropdown.
ii. Select the Rate from the corresponding dropdown.
iii. Click OK.
d. Enter the flood insurance premium as described in Step 10.
e. Add additional fees in the user-defined fields.
f. Use the Source of Service Provider (LEF) dropdown lists to make selections as needed for any fees that may pertain to your RegulatorConnect report.
15. Complete the Initial Escrow Payment as Closing section.
a. Enter the escrow deposit information manually or calculate it by using the tables that were set up in Utilities > Dropdown Lists.
b. Click the corresponding button to open the dialog box to calculate the hazard insurance or county property tax for the escrow account.
Note: To override the calculated value, click the lock box next to the Amount field and enter a new value.
c. To include the fee in the monthly escrow payment, select the Escrowed check box.
d. To exclude a fee from the escrow calculation in the Truth-In_Lending disclosure table, select the Do not include in TIL disclosure check box that corresponds to that fee.
e. Use the Aggregate Adjustment button to open the Initial Escrow Account Setup dialog box. This dialog box is used to specify funds that are to be deposited into an escrow (impound) account.
To turn off the aggregation calculation and enter the amount manually, select the corresponding lock box. The following actions occur:
- The Aggregate Adjustment button becomes disabled.
- The aggregated escrow recalculations functionality is disabled for printing, therefore, when you print and preview the Aggregate Escrow Account Disclosure the will be blank.
- The Calculate button is hidden in the Aggregate Escrow Account Disclosure screen and calculated fields are cleared.
- Data in the Aggregate Escrow Account Disclosure screen is cleared.
- The aggregated escrow recalculated functionality is disabled for MISMO exports.
When the aggregate calculation lock box is turned on, the following actions occur:
- The Aggregate Adjustment button becomes enabled.
- The aggregated escrow recalculations functionality is enabled for printing when you print and preview the Aggregate Escrow Account Disclosure.
- The Calculate button is not hidden int he Aggregate Escrow Account Disclosure screen.
- The aggregated escrow recalculation functionality is enabled for MISMO exports.
f. Use the Source of Service Provider (LEF) dropdown lists to make selections as needed for any fees that may pertain to your RegulatorConnect report.
16. Complete the Other section as described in Step 10.
Note: The Owner's Title Insurance section applies only to purchase transactions.
a. To calculate the insurance premium by using the tables that were set up in Utilities > Title Tables > Owner's Policy, click the lock box next to the Amount field to enable the Owner's Title Insurance button.
i. Click the button that corresponds to the tax to open the rate calculation dialog box.
ii. Select a table from the list and click OK.
The amount is automatically populated in the Amount field.
b. Add additional fees in user-defined fields.
c. Select the check box in the Optional column that corresponds to the fee if the fee is optional.
d. Use the Source of Service Provider (LEF) dropdown lists to make selections as needed for any fees that may pertain to your RegulatorConnect report.
After all the fees are entered, the total estimated settlement charges not included on the Good Faith Estimate, excluding fees paid outside of closing and the total of all the estimated settlement charges including the fees on the Good Faith Estimate are calculated.
17. Review the costs in the Closing Costs & Prepaid Items Summary and Closing Costs & Prepaid Allocation sections.
The total settlement charges are calculated and populated in the Total Estimated Settlement Charges field.
The closing costs and prepaid item allocations are totaled in the Closing Costs & Prepaid Items Summary and in the Closing Costs & Prepaids Allocation section.
Important: To include the Paid by Broker and Paid by Other values in the Closing Costs & Prepaid Items Summary section in the total adjustments, you must manually enter them on the Loan Estimate - Payoffs and Adjustments screen.
18. Enter any adjustments in the Total Estimated Funds Needed to Close (Details of Transaction) section.
This section contains a total of the estimated closing costs and prepaid items. This information is duplicated in the Details of Transaction section on page 4 of the Loan Application.
19. Enter any notes in the Notes section.
