For information on linking or unlinking 1st and 2nd loan files please refer to knowledge base article 2615 Creating a Simultaneous Second Mortgage (Piggyback).
If the 1st lien disclosure records the entirety of the seller’s transaction then the 2nd lien disclosure does not have to be provided to the seller. Therefore, the sales price is excluded from the cash to close calculations for the 2nd lien disclosure; alleviating the necessity of entering the 1st lien mtg amount onto the 2nd lien disclosure for the purpose of balancing cash to close. You can only use new calculation on the simultaneous subordinate financing disclosure if the 1st lien records the entirety of the seller’s transaction. Otherwise, the 1st lien mtg amount should be recorded in the payoffs and payments of the 2nd lien disclosure in order to balance cash to close.
To calculate cash to close on a simultaneous second loan file:
1. Mark the 2nd file as Second Mtg using the checkbox on the Borrower Information screen.
2. Enter the 2nd lien’s mortgage amount in the Loan Amt field.
3. If all seller’s transactions are being recorded in the first lien, check the Simultaneous Second checkbox.
4. Open the Loan Estimate.
5. Click the Payoffs & Adjustments button at the bottom of the screen.
6. Enter the 2nd lien information and amount in the Adjustments and Other Credits section.
7. Click Loan Estimate button on the bottom of the screen to return to the Loan Estimate.
8. Scroll to the Calculating Cash to Close section.
The Total Closing Costs (J) and Estimated Cash to Close fields will only populate any fees due from borrower at closing.
