A. Origination Charges

These are items that you will pay to each creditor and loan originator, for originating and extending credit. These charges can include, but are not limited to, the following:

• Points
• Processing fee
• Underwriting fee
• Application fee
• Funding fee
• And other administrative services

B. Services You Cannot Shop For

These are items provided by persons other than the creditor or mortgage broker that the consumer cannot shop for and will pay for at settlement. These items include, but are not limited to, the following:

• Appraisal fee
• Appraisal management company fee
• Credit report fee
• Flood determination fee
• Government funding fee (such as a VA or USDA guarantee fee, or any other fee paid to a government entity as part of a governmental loan program)
• Homeowner’s association certification fee
• Lender’s attorney fee
• Tax status search fee
• Third-party subordination fee
• Title – closing protection letter fee
• Title – lender’s title insurance policy
• An upfront mortgage insurance fee (unless the fee is a prepayment of future premiums or a payment into an escrow account).

C. Services you Can Shop For

These are provided by the persons other than the creditor or mortgage broker, and are services that the consumer can shop for and pay at settlement. These items included, but are not limited to, the following:

• Pest inspection fee
• Survey fee
• Title – closing agent fee
• Title – closing protection letter fee

D. Total Loan Costs (A+B+C)

As you would expect, the total loan costs are the sum of all items in sections A, B, and C.

E. Taxes and Other Government Fees

In this section, you will notice that all of the recording fees and taxes will be listed first, and transfer taxes second. This section will include, but is not limited to, the following items:

• Recording fees
• State taxes
• Local taxes
• Transfer taxes

F. Prepaids

This section highlights all of the items that you pay for in advance of the first scheduled payment of the loan. Loans typically don’t collect the first month’s payment right away, so in order to compensate for that gap, investors require us to collect for items in advance to cover this period of time. These items include, but are not limited to, the following:

• Homeowner’s insurance premium
• Mortgage insurance premium
• Prepaid interest
• Property taxes

G. Initial Escrow Payment at Closing

This section includes items that you will be expected to place into a reserve, or escrow, account at closing. Part of your monthly payment will go into this account in order to pay any taxes or insurance on time. You will see, but they are not limited to, the following items in this section:

• Homeowner’s insurance
• Mortgage insurance
• Property taxes

H. Other

This section is for any other fee that you are likely to pay, or have contracted with a person to pay, that isn’t a creditor or loan originator. These fees could be, but are not limited to, the following:

• Owner’s title insurance
• Credit life insurance
• Debt suspension coverage
• Debt cancellation coverage
• Warranties of home appliances and systems

I. Total Other Costs (E+F+G+H)

This box displays the sum of the values of all items in boxes E, F, G and H. These cost are established by government action, determined by standard calculations applied to ongoing fixed cost, or based on an obligation incurred by the consumer independently of any requirement imposed by the creditor.

J. Totoal Closing Costs (D+I+Lender credits)

In this section you will see that this is the sum of section D, I, and any lender credits that the borrower may have been given throughout the process. You will notice that the lender credit will be a negative number as it is a credit to the borrower towards their closing cost.