Q: What information goes on the Closing Disclosure form – page 3?
A: On page 3 of the Closing Disclosure, the Calculating Cash to Close table and Summaries of Transactions tables are disclosed. (§ 1026.38(i), (j), and (k)). For transactions without a seller and for simultaneous subordinate-lien loans where the first-lien Closing Disclosure discloses the entirety of the seller’s transaction, a Payoffs and Payments table may be substituted for the Summaries of Transactions table and placed before the alternative Calculating Cash to Close table. (§ 1026.38(e)(4) and (t)(5)(vii)(B)). For example, see page 3 of form H-25(J) of appendix H to Regulation Z.
Creditors disclose principal reductions in the Summaries of Transactions table on the standard Closing Disclosure or in the Payoffs and Payments table on the alternative Closing Disclosure. Principal reductions can be provided for, among other things, curing a tolerance violation or reducing the cash back provided to the consumer at closing. Disclosure of principal reductions may vary depending on whether the principal reduction is paid with or without closing funds. (Comment 38-4)