Module 1: Introduction

The 2015 Itemization screen lists the fees and credits associated with obtaining a mortgage loan. These fees and credits that are input on this screen transfer directly to the Loan Estimate and Closing Disclosures.

Most fees fall into one of four categories: lender fees, loan fees, settlement provider fees and 3rd party fees.

These fees are important for several reasons:

Transparency: The Loan Estimate and Closing Disclosure provide borrowers with an overview of the costs associated with their mortgage loan, ensuring transparency in the lending process.
Comparison Shopping: By reviewing the LE/CD from different lenders, borrowers can compare lenders and choose the most suitable option based on the total cost of the loan.
Cost Estimation: The LE/CD helps borrowers estimate the costs they need to pay at the time of closing the loan.
Protection for Borrowers: The LE/CDs are regulated by the Consumer Financial Protection Bureau (CFPB) under the Truth in Lending Act (TILA). This regulation ensures that borrowers receive accurate and consistent information about loan costs, enabling them to make informed decisions.

Disclosing accurately avoids compliance violations and costs to cure that we the lender would have to pay for a violation.

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Module 1: Introduction

Most fees fall into one of four categories: lender fees, loan fees, settlement provider fees and 3rd party fees.

These fees are important for several reasons:

Transparency: The Loan Estimate and Closing Disclosure provide borrowers with an overview of the costs associated with their mortgage loan, ensuring transparency in the lending process.
Comparison Shopping: By reviewing the LE/CD from different lenders, borrowers can compare lenders and choose the most suitable option based on the total cost of the loan.
Cost Estimation: The LE/CD helps borrowers estimate the costs they need to pay at the time of closing the loan.
Protection for Borrowers: The LE/CDs are regulated by the Consumer Financial Protection Bureau (CFPB) under the Truth in Lending Act (TILA). This regulation ensures that borrowers receive accurate and consistent information about loan costs, enabling them to make informed decisions.

Disclosing accurately avoids compliance violations and costs to cure that we the lender would have to pay for a violation.

PreviousIntroduction to 2015 Itemization NextModule 2: Fee Lines