How brackets affect the GFE/MLDS
If an item has been pre-paid by the Borrower and you do not want to include it in the Settlement Charges or Total Estimated Funds Needed to Close on the Good Faith Estimate, place brackets around that amount.
This displays the amount the Borrower paid, but does not include it in the total amount that is due at the close of escrow. This includes appraisal and credit report fees. The Paid box does not automatically deduct these items from the total amount.
If the fee has been paid outside of closing, you can insert a check in the POC checkbox to exclude it from the total funds needed to close.
How subtraction signs affect the GFE/MLDS
If you need to show earnest money or seller carry back, go to the Total of Estimated Funds Needed to Close section. Under Total Estimated Funds Needed to Close (in one of the blank fields available to you) place the subtraction sign before the amount. This deducts the amount from the total funds needed to close.
What brackets on the Liabilities section of Pag 3 of the Loan Application mean
The liability section automatically brackets any liability marked as a mortgage (M) and does not include the monthly payment in the total. The payments are calculated either from Page 3 of the Loan Application (Schedule of Real Estate) for rental properties and second homes or from Page 2 of the Loan Application for the subject property.
Note: Mark any liens that are being paid off through the refinance in the Will be paid off checkbox of the Liabilities section in Page 3 of the Loan Application. This transfers that data to Page 3 of the Loan Application in the Details of Transaction.
Items that have been marked Will be paid off do not have to be bracketed. The software does not include them in the total monthly debts when the Will be paid off box is checked.
Never use the subtraction sign.
The subtraction sign causes the software to deduct the amount. If you have an item that you wish to show but not include in the total (for example, an installment debt with less than 10 months remaining), place brackets around the payment.