Truth in Lending Act (Regulation Z)

Overview

The Truth in Lending Act (TILA), 15 U.S.C. 1601 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , et seq., and its implementing regulation, Regulation Z (12 CFR 1026 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ), were initially designed to protect consumers primarily through disclosures. Over time, however, TILA and Regulation Z have been expanded to impose a wide variety of requirements and restrictions on consumer credit products. 

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) transferred rulemaking authority under TILA from the Federal Reserve Board to the Consumer Financial Protection Bureau (CFPB), effective July 1, 2011.

TILA is intended to protect consumers and ensure competition among financial institutions through the meaningful disclosure of credit terms, allowing consumers to compare standardized credit terms more readily and knowledgeably. Before TILA was enacted, consumers were faced with a bewildering array of credit terms and rates. It was difficult to compare loans because they were rarely presented in the same format. Now, all financial institutions must use the same credit terminology and expressions of rates. In addition to providing a uniform system for disclosures, TILA:

  • Protects consumers against inaccurate and unfair credit billing and credit card practices;
  • Provides consumers with rescission rights;
  • Provides for rate caps on certain dwelling-secured loans;
  • Imposes limitations on home equity lines of credit and certain closed-end home mortgages;
  • Provides minimum standards for most dwelling-secured loans; and
  • Prohibits unfair or deceptive mortgage lending practices.

TILA and Regulation Z do not, however, tell financial institutions how much interest they may charge or whether they must grant a consumer a loan.

The examination procedures will use “TILA” interchangeably for Truth-in-Lending Act and Regulation Z, since Regulation Z is the implementing regulation. Unless otherwise specified, all of the regulation references are to Regulation Z (12 CFR 1026 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ).

Regulation Z (Truth-In-Lending) can be found here: (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)

Associated Risks

Compliance risk can occur when the credit union fails to implement the necessary controls to comply with TILA.

Transaction risk can occur when the credit union does not have adequate internal controls in place and as a result suffers a loss.

Reputation risk can occur when the credit union incurs fines and penalties or decreased member confidence as a result of failure to comply with TILA.

Strategic risk can occur when the board of directors fails to perform necessary due diligence in reviewing policies and procedures, and existing and prospective products and services for compliance.

Examination Objectives

  • To determine if the credit union has policies and procedures to ensure it complies with TILA.
  • To appraise the quality of the credit union’s compliance management system for TILA.
  • To determine the credit union’s compliance with TILA.
  • To initiate corrective action when policies or internal controls are deficient, or when violations of law or regulation are identified.
  • To determine if the credit union will be required to make adjustments to consumer accounts under the restitution provisions of TILA.

Examination Procedures1

A. General Procedures

  1. Obtain information relevant to the area of examination from the credit union‘s compliance management system program (historical examination findings, complaint information, and significant findings from compliance review and audit).
  2. Through discussions with management and review of the following documents, determine whether the credit union’s internal controls are adequate to ensure compliance in the area under review.  Identify procedures the institution uses daily to detect errors/violations promptly.  Also, review the procedures the institution uses to ensure compliance when changes occur (e.g., changes in interest rates, service charges, computation methods, and software programs).
    • Organizational charts
    • Process flowcharts
    • Policies and procedures
    • Loan documentation and disclosures
    • Checklists/worksheets and review documents
    • Computer programs
  3. Review audit or other compliance review work-papers and determine:
    1. The procedures used address all regulatory provisions (see Transactional Testing section).
    2. Steps are taken to follow-up on previously identified deficiencies.
    3. The procedures used include samples that cover all product types and decision centers.
    4. The work performed is accurate (through a review of some transactions).
    5. Significant deficiencies, and the root cause of the deficiencies, are included in reports to management/board.
    6. Corrective actions are timely and appropriate.
    7. The institution reviews the area at an appropriate interval.
  4. Review the credit union’s record retention practices to determine whether the required documentation or evidence of compliance is retained for at least:
    1. Two years after the disclosures were required to be made or other action was required to be taken, other than for the advertising requirements, requirement for mortgages subject to §§ 1026.19(e), (f) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , and certain requirements for mortgages which are described below. (§ 1026.25(a) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    2. Three years after the later of the date of consummation, the date disclosures are required to be made, or the date action is required to be taken, for evidence of compliance with §§ 1026.19(e)-(f) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (regarding closed-end loans that are secured by real property or a cooperative unit and subject to those sections) other than as set forth in 4c below. (§ 1026.25(c)(1)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    3. Five years after consummation for completed Closing Disclosure forms, and all documents related to these disclosures, as required by §§ 1026.19(f)(1)(i) or (f)(4)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .  If the loan is sold, transferred, or otherwise disposed of during that time, the credit union must provide a copy of the Closing Disclosure to the owner or servicer as part of the loan file transfer. The new owner or servicer must retain the disclosure for the remainder of the five year period. (§ 1026.25(c)(1)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    4. Three years after the date of receipt of payment to show compliance with loan originator compensation requirements. (§ 1026.25(c)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    5. Three years after consummation to show compliance with ability-to-repay minimum standards (§§ 1026.43(c)-(f) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) and prepayment penalty restrictions (§ 1026.43(g) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) for loans secured by a dwelling. (§ 1026.25(c)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

B.Disclosure Forms

Determine if the credit union has changed any TILA disclosure forms or if there are forms that have not been previously reviewed for accuracy. If so verify the accuracy of each disclosure by reviewing the following:

Closed-End Credit Disclosure Forms Review Procedures

Closed-end consumer credit transactions secured by real property or a cooperative unit, other than a reverse mortgage subject to § 1026.33 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , are subject to the disclosure, timing and other requirements under the TILA-RESPA Integrated Disclosure rule (TRID).  Thus, for most closed-end mortgages, including construction-only loans and loans secured by vacant land or by 25 or more acres not covered by RESPA,  the credit union must provide the Loan Estimate and the Closing Disclosure.  There is a partial exemption in § 1026.3(h) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) from the requirement to provide the Loan Estimate and Closing Disclosure if the transaction meets all of the following criteria:

  1. Secured by a subordinate lien;
  2. Transaction is for the purpose of home buyer assistance such as down payments or closing costs, rehabilitation loans, energy efficiency assistance, or foreclosure prevention;
  3. Credit contract does not require the payment of interest;
  4. Credit contact provides for repayment that is forgiven, deferred for 20 years, or deferred until the property is sold or is no longer the consumer’s principal dwelling; and,
  5. Total costs payable by the consumer in connection with the transaction at consummation are limited to:
    1. recording fees,
    2. transfer taxes,
    3. a bona fide and reasonable application fee, and
    4. a bona fide and reasonable fee for housing counseling services; and the total of costs payable by the consumer for the application fee and housing counseling services is less than 1% of the amount of credit extended. 

For those transactions meeting the criteria for a partial exemption, credit unions may provide either a compliant disclosure of the cost of credit under § 1026.18 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) or a compliant Loan Estimate and Closing Disclosure, and do not need to provide the special information booklet, Good Faith Estimate, or HUD-1 settlement statement.

NOTE: The GFE, HUD-1, and Truth-in-Lending forms continue to be used for transactions covered by the other disclosure requirements of TILA or RESPA (e.g., reverse mortgages) or before the effective date of the TRID Rule (October 3, 2015) (§§ 1026.19(e), (f) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ).

Closed-End Credit Disclosure Forms – Transactions under §§ 1026.19(e), (f)

For a closed-end credit transaction subject to §§ 1026.19(e) and (f), (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) determine whether the credit union provides disclosures required under § 1026.37 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (Loan Estimate) and § 1026.38 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (Closing Disclosure). (§§ 1026.19(e), (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) 1026.19(f)). (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)

  1. For loans subject to § 1026.19(e), (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) determine whether the credit union provides the good faith disclosures in the form required by § 1026.37 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and conforming to the Loan Estimate in Appendix H (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (§§ 1026.19(e) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , 1026.37(o)). (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
  2. For loans subject to § 1026.19(f), (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) determine whether the credit union provides  the Closing Disclosure in the form required by § 1026.38 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and conforming to the Closing Disclosure in Appendix H (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (§§ 1026.19(f), (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) 1027.38(t) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ).

NOTE: Use of the Loan Estimate and Closing Disclosure is mandatory for transactions covered by the Real Estate Settlement Procedures Act (RESPA).  For transactions not covered by RESPA, the Loan Estimate and Closing Disclosure may be considered a model form.

Loan Estimate
  1. Loan Estimate (Page 1 of the Loan Estimate).  Determine whether the disclosures required for the Loan Estimate are accurately completed and include the following disclosures on the first page (§ 1026.37(a) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ). Disclosures are detailed below according to the designations made on the Loan Estimate form:
    1. The statement: “Save this Loan Estimate to compare with your Closing Disclosure” (§ 1026.37(a)(2)); (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    2. Name and address of credit union. (§ 1026.37(a)(3)); (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    3. Date Issued. (§ 1026.37(a)(4)); (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    4. Applicants. (§ 1026.37(a)(5)); (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    5. Property.  The property address, including zip code (§ 1026.37(a)(6)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ;
    6. Sales Price (§ 1026.37(a)(7)); (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      1. For transactions with a seller, the contract sale price of the property identified in § 1026.37(a)(6) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , labeled “Sale Price.” 
      2. For transactions that do not have a seller, the estimated value of the property identified in § 1026.37(a)(6) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , labeled “Prop. Value.”
    7. Loan Term.  Stated in years, months, or both, as applicable (§ 1026.37(a)(8)); (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    8. Purpose.  Loan purpose, categorized as “Purchase,” “Refinance,” or “Construction.” All other loan purposes must be categorized as  “Home Equity Loan” (§ 1026.37(a)(9)); (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    9. Product.  Product type, including the type of interest rate categorized as “Adjustable Rate,” “Step Rate,” or “Fixed Rate.”  This disclosure must be preceded by the type of feature that may change the consumer’s periodic payment, such as “Negative Amortization,” “Interest Only,” “Step Payment,” “Balloon Payment,” or “Seasonal Payment,” with the duration of any introductory rate or payment period and the first adjustment period if applicable (§ 1026.37(a)(10)); (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    10. Loan Type.  Categorized as “Conventional,” “ FHA,” “VA,” or “Other” (§ 1026.37(a)(11)); (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    11. Loan ID #.  (§ 1026.37(a)(12)); (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and
    12. Rate Lock.  A statement of whether the disclosed interest rate is locked for a specific period.  If so, the date and time (including time zone) that the lock will expire, along with an accompanying statement that the interest rate, any points and any lender credits may change unless the interest rate has been locked (§ 1026.37(a)(13)). (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
  2. Loan Terms (Page 1 of the Loan Estimate).  Determine whether, a separate table under the heading “Loan Terms,”, contains the following required disclosures (§ 1026.37(b)): (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    1. Loan Amount. (§ 1026.37(b)(1)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    2. Interest Rate. (§ 1026.37(b)(2)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    3. Principal and Interest.  The applicable unit period (such as bi-weekly, monthly, yearly) must precede the initial periodic payment amount that will be due under the terms of the legal obligation, labeled “Principal & Interest”. (§ 1026.37(b)(3)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    4. Prepayment Penalty.  A statement of whether the loan contains a prepayment penalty, an affirmative or negative response to the question, the maximum amount of the prepayment penalty that may be imposed, and the date on which the penalty may no longer be applied. (§§ 1026.37(b)(4), 1026.37(b)(7)(i)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) If the date is disclosed (for an affirmative response), determine whether it is disclosed as the year in which the event occurs, counting from the date of consummation. (§ 1026.37(b)(8)(iii)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    5. Balloon Payment.  A statement of whether the loan contains a balloon payment, an affirmative or negative response to the question, the maximum amount of the balloon payment and the due date of such payment. (§§ 1026.37(b)(5), (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) 1026.37(b)(7)(ii)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)  If the date is disclosed (for an affirmative response), determine whether it is disclosed as the year in which the event occurs, counting from the due date of the initial periodic payment. (§ 1026.37(b)(8)(ii)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    6. Whether the loan amount, interest rate or monthly principal and interest can increase after closing (§ 1026.37(b)(6)), (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and if so, the information required by §§ 1026.37(b)(6)(i)-(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and 1026.37(b)(8)(i)-(ii (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ). 
  3. Projected Payments (Page 1 of the Loan Estimate).  Determine whether, under the heading “Projected Payments” (§ 1026.37(c)): (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    1. All required fields in the table are completed, follow the formatting and statement requirements, are accurate, and itemize the periodic payments or range of payments together with an itemized estimate of taxes, insurance, assessments, and payments to be made with escrow account funds; (§§ 1026.37(c)(1) – (5)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)

      NOTE: If accurate, a credit union can indicate that a portion of taxes, insurance and assessments will be paid with escrow account funds, such as by using the word “some.” (Comment 1026.37(c)(4)(iv)-2 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) );
    2. Each separate periodic payment or range of payments is itemized as follows: (§ 1026.37(c)(2)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)

      NOTE:  The labels required pursuant to paragraph (c)(2) of this section must be listed under the subheading “Payment Calculation”. (§ 1026.37(c)(3)(i)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)

      1. Principal and Interest.  The amount payable for principal and interest, labeled “Principal & Interest”, including the term “only interest” if the payment or range of payments includes any interest only payment (§ 1026.37(c)(2)(i)): (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
        1. Adjustable Rate Loans.  The maximum principal and interest payment must be determined by assuming that the interest rate in effect throughout the loan term is the maximum possible interest rate. The minimum amounts must be determined by assuming that the interest rate in effect throughout the loan term is the minimum possible interest rate. (§ 1026.37(c)(2)(i)(A)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
        2. Adjustable Rate and Negative Amortization Loans.  The maximum principal and interest amounts (after the loan term period for which the loan principal balance may increase) must be determined by assuming the maximum principal amount permitted under the terms of the legal obligation at the end of the loan term period.  The minimum amounts must be determined by assuming that the interest rate in effect throughout the loan term is the minimum possible interest rate. (§ 1026.37(c)(2)(i)(B)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      2. Mortgage Insurance.  The maximum amount payable for mortgage insurance premiums corresponding to the principal and interest payment disclosed, labeled “Mortgage Insurance.” (§ 1026.37(c)(2)(ii)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      3. Escrow.  The amount payable into an escrow account to pay some or all of the charges described in § 1026.37(c)(4)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , as applicable, labeled “Escrow,” together with a statement that the amount disclosed can increase over time. (§ 1026.37(c)(2)(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      4. Total Monthly Payment.  The total periodic payment, calculated as the sums disclosed as the “Principal & Interest,” “Mortgage Insurance,” and “Escrow”, labeled “Total Monthly Payment”. (§ 1026.37(c)(2)(iv)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    3. If the amount of a periodic monthly payment may change, additional, separate periodic payments, or range of payments have been disclosed.  Events requiring additional disclosure(s) include:
      1. The change of the periodic principal and interest payment or range of such payments,
      2. A scheduled balloon payment,
      3. The automatic termination of mortgage insurance, or
      4. The anniversary of the due date of the initial periodic payment or range of payments immediately following the occurrence of a change in the principal and interest payment or range of such payments. (§ 1026.37(c)(1)(i)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    4. The credit union has met the following in disclosing a range of payments:  (§ 1026.37(c)(1)(iii)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      1. The credit union has disclosed both the minimum and maximum amount for both the principal and interest payment and the total periodic payment; (§ 1026.37(c)(1)(iii)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      2. The credit union has accurately disclosed a range of payments where multiple events are combined into a single range of payments in order to meet the requirement that only four disclosures may be made; (§ 1026.37(c)(1)(iii)(A)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      3. The credit union has accurately disclosed a range of payments where multiple events occur during a single year or an event occurs during the same year as the initial periodic payment or range of payments.  If the event occurs during the same year as the initial periodic payment or range of payments, the credit union has disclosed the range that would apply during the year in which the events will occur; and, (§ 1026.37(c)(1)(iii)(B)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)

        NOTE: If multiple changes to periodic principal and interest payments would result in more than one separate periodic payment or range of payments in a single year, the credit union must combine the changes and disclose them as a single range of payments. (Comment 1026.37(c)(1)(iii)(B)-1 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ).
      4. The credit union has accurately disclosed a range of payments if the periodic principal and interest payment may adjust based on index rates at the time an interest rate adjustment may occur. (§ 1026.37(c)(1)(iii)(C)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    5. The credit union has not disclosed more than four separate periodic payments or ranges of payments. (§ 1026.37(c)(1)(ii)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      1. If additional separate periodic payments or range of payments disclosures are required after the third separate periodic payment or range of payment disclosure, and the transaction does not involve a balloon payment, determine whether the credit union has disclosed the additional separate periodic payment or range of payments as a single fourth range of payments disclosure. (§ 1026.37(c)(1)(ii)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      2. If additional separate periodic payments or range of payments disclosures are required and the transaction involves a final balloon payment, determine whether the credit union has disclosed the additional separate periodic payment or range of payments as a single range of payments after the second separate periodic payment disclosure.  Disclosure of the final balloon payment must appear as the final disclosure, under the heading “Final Payment”. (§§ 1026.37(c)(1)(ii)(A (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ), 1026.37(c)(3)(iii)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      3. The automatic termination of mortgage insurance requires disclosure of an additional separate periodic payment or range of payments only if the total number of separate periodic payments or ranges of payments does not exceed three. (§ 1026.37(c)(1)(ii)(B)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      4. Each separate periodic payment or range of payments must be disclosed under a subheading stating the years of the loan during which that payment or range of payments will apply.  The years must be disclosed in sequence of whole years from the due date of the initial periodic payment. (§ 1026.37(c)(3)(ii)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    6. Taxes, Insurance & Assessments.  Determine whether the credit union accurately discloses: (§ 1026.37(c)(4)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      1. The sum of all mortgage related obligations, expressed as a monthly amount, even if no escrow account for the payment of some or any of such charges will be established, labeled “Taxes, Insurance & Assessments.” (§§ 1026.37(c)(4)(i-ii)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)

        NOTE:  The term mortgage related obligations, as used here, takes the definition used in § 1026.43(b)(8 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ), however, it does not include amounts identified in § 1026.4(b)(5). (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)  Amounts that must be disclosed as “Taxes, Insurance & Assessment” include premiums or other charges for credit life, accident, health, loss-of-income insurance; premiums or other charges for insurance against loss of or damage to property, or against liability arising out of the ownership or use of property; or premiums or charges paid for debt cancellation or debt suspension coverage. (§ 1026.43(b)(8)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      2. A statement that the mortgage related obligations disclosed can increase over time (§ 1026.37(c)(4)(iii)). (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)  If estimates are used for property taxes and homeowner’s insurance, they must reflect: (§ 1026.37(c)(5)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
        1. The taxable assessed value of the real property or cooperative unit securing the transaction after consummation, including the value of any improvements on the property or to be constructed on the property, if known.  The disclosure must be made whether or not such construction will be financed from the proceeds of the transaction for property taxes; and (§ 1026.37(c)(5)(i)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
        2. The replacement costs of the property during the initial year after the transaction for premiums or other charges for insurance against loss of or damage to property, or against liability arising out of the ownership or use of property. (§ 1026.37(c)(5)(ii)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      3. A statement of whether the mortgage related obligations include payments for property taxes; premiums or other charges for insurance against loss of or damage to property, or against liability arising out of the ownership or use of property; or as otherwise identified by § 1026.43(b)(8). (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)  The credit union must disclose whether the amounts will be paid by the credit union using escrow account funds. (§ 1026.37(c)(4)(iv)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      4. A statement that the consumer must pay separately any mortgage related obligations that are not paid by the credit union using escrow account funds. (§ 1026.37(c)(4)(v)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      5. A reference to the escrow account information contained on page 2 of the Loan Estimate, captioned “Initial Escrow Payment at Closing”. (§ 1026.37(c)(4)(vi)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
  4. Costs at Closing (Page 1 of the Loan Estimate).  Determine whether, under the heading “Costs at Closing” the credit union discloses the Estimated Closing Costs (including Loan Costs and Other Costs, less Lender Credits) and the Estimated Cash to Close (including Closing Costs), based upon the calculations required by § 1026.37(f), (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (g), and (h) (and found on page two of the Loan Estimate). (§ 1026.37(d)(1)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
  5. Optional Alternative Table for Transactions without a Seller or for simultaneous subordinate financing.  Determine whether, for transactions that do not involve a seller or for simultaneous subordinate financing, the credit union chose to use the alternative “Cash to Close” table.  If so, determine whether the amount is calculated in accordance with § 1026.37(h)(2)(iv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (Calculating Cash to Close), includes a statement of whether the disclosed estimated amount is due from or to the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ; and includes a statement (referring the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) to the alternative “Calculating Cash to Close” table pursuant to § 1026.37 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (h)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (§ 1026.37(d)(2)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)

    NOTE: In a purchase transaction, the optional alternative disclosure may be used for the simultaneous subordinate financing Loan Estimate only if the first-lien Closing Disclosure will record the entirety of the seller’s transaction. (Comment 1026.37(d)(2)-1 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )  Credit unions may only use this alternative estimated cash to close disclosure in conjunction with the alternative disclosure under § 1026.37(h)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (Comment 1026.37(d)(2)-1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
  6. ​ (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) Website Reference (Page 1 of the Loan Estimate).  Determine whether the credit union discloses that the consumer may obtain general information and tools on the Consumer Financial Protection Bureau’s website, and has included a link to the site specified in § 1026.37(e). (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
  7. Closing Cost Details:  Loan Costs (Page 2 of the Loan Estimate).  Determine on page 2 whether, under the heading “Loan Costs,” the credit union makes the following disclosures: (1026.37(f) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    1. Origination charges.  Accurately itemized to reflect each amount and a subtotal of all amounts that the consumer will pay to each creditor and loan originator for originating and extending the credit.  Determine whether the points paid to the credit union to reduce the interest rate are itemized separately, as both a percentage of the amount of credit extended and a dollar amount, and using the label “__% of Loan Amount (Points)”.  Determine whether points paid is the first item listed.  If points to reduce the interest rate are not paid, this disclosure must be left blank. (§ 1026.37(f)(1)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    2. Services You Cannot Shop For.  An accurate itemization, limited to thirteen items, of each amount and subtotal of all amounts that the consumer will pay for settlement services that the consumer cannot shop for, and that are provided by persons other than the credit union or mortgage broker.  Determine whether the terms related to title insurance include “Title” as an introductory description. (§ 1026.37)(f)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    3. Services You Can Shop For.  An accurate itemization, limited to fourteen items, of each amount and subtotal of all amounts that the consumer will pay for settlement services that the consumer can shop for and that are provided by persons other than the credit union or mortgage broker.  Determine whether the terms related to title insurance include “Title” as an introductory description. (§ 1026.37)(f)(3)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    4. Total Loan Costs.  An accurate sum of the subtotals required to be disclosed under § 1026.37(f) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) as Origination Charges, Services You Cannot Shop For and Services You Can Shop For. (§ 1026.37(f)(4)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    5. Other than as noted in item 7a.Origination charges above (points), determine that items are ordered alphabetically by label under the applicable subheading.  If there are more than the maximum allowable number of line items, determine that the remaining charges are disclosed in the aggregate in the last line as “Additional Charges.” (§§ 1026.37(f)(5), (f)(6)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)  
  8. Closing Cost Details: Other Costs (Page 2 of the Loan Estimate).  Determine whether the credit union makes the following disclosures: (§ 1026.37(g)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    1. Taxes and Other Government Fees.  Accurately itemized to reflect amounts to be paid to State and local governments for taxes and other government fees, including subtotals for recording fees and other taxes.  A separate line must be included for transfer taxes paid by the consumer.  If not charged to the consumer, these fields must be left blank.  (§ 1026.37(g)(1)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    2. Prepaids.  Accurately itemized to reflect amounts to be paid by the consumer in advance of the first scheduled payment and the subtotals of all such amounts.  The disclosures must follow the required order and include the number of months and the total dollar amount to be paid at consummation for homeowner’s insurance and mortgage insurance premiums, the prepaid interest to be paid at consummation, based on daily interest, number of days, interest rate and the total to be collected; the number of months for which property taxes are to be paid; and the amount the consumer will pay at consummation.  If any of these items are not charged to the consumer, the field must be left blank.  A maximum of three additional items may be disclosed (including applicable time period covered by the payment at consummation and total to be paid) as Prepaids. (§ 1026.37(g)(2)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    3. Initial Escrow Payment at Closing.  Accurately itemized to reflect the amounts that the consumer will be expected to place into an escrow account at consummation to be applied to recurring periodic charges and subtotals of all amounts.   The disclosure must provide the amount escrowed each month, the number of months of escrow, and the total amount to be paid into the escrow account by the consumer at consummation.  Homeowner’s insurance premiums, mortgage insurance premiums, and property taxes must be separately subtotaled.  If any of these items are not charged to the consumer, that field must be left blank.  A maximum of five additional items may be disclosed as part of Initial Escrow Payment at Closing.  (§ 1026.37(g)(3)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    4. Other.  An accurate itemization of costs that the consumer is likely to pay, or has contracted with a person other than the credit union or loan originator to pay, at closing and of which the credit union is aware at the time of issuing the Loan Estimate.  Determine whether the credit union has used a descriptive label for each such amount, and provided the subtotal of all such amounts.  Determine whether the terms related to title insurance include “Title” as an introductory description, and whether the parenthetical description “(optional)” is used at the end of the label for items disclosing any premiums paid for separate insurance, warranty, guarantee, or event-coverage products.  A maximum of five items may be disclosed as “Other”. (§ 1026.37(g)(4)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    5. Total Other Costs.  An accurate sum of the subtotals for Taxes and Other Government Fees, Prepaids, Initial Escrow Payment at Closing, and Other disclosed pursuant to § 1026.37(g)(1) through (4) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .  (§ 1026.37(g)(5)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    6. Total Closing Costs.  Accurate component amounts and sum of the following (§ 1026.37(g)(6)): (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      1. D + I.  A sum of the Total Loan Costs and Total Other Costs; and, (§ 1026.37(g)(6)(i)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      2. Lender Credits.  The amount of any lender credits, disclosed as a negative number.  If no such amount is disclosed, this line must be left blank. (§ 1026.37(g)(6)(ii)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    7. Determine that items follow the alphabetical ordering and addenda restrictions of §§ 1026.37(g)(7) and (g)(8) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .
  9. Closing Cost Details: Calculating Cash to Close (Page 2 of the Loan Estimate).  Determine whether, under the heading “Calculating Cash to Close,” the credit union has accurately disclosed the total amount of cash or other funds that must be provided by the consumer at consummation, itemized into the following component amounts: (§ 1026.37(h)(1)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    1. Total Closing Costs. The amount disclosed as the sum of the loan costs, other costs and lender credits, labeled “Total Closing Costs”. (§ 1026.37(h)(1)(i)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    2. Closing Costs Financed (Paid from your Loan Amount). The amount of any closing costs to be paid out of loan proceeds, disclosed as a negative number, labeled “Closing Costs Financed (Paid from your Loan Amount)”. Determined by subtracting the estimated total amount of payments to third parties not otherwise disclosed under §§ 1026.37(f) and (g) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) from the loan amount disclosed under § 1026.37(b)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (§ 1026.37(h)(1)(ii)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)

      NOTE: (1) If the result of the calculation is zero or negative, the amount of $0 is disclosed. (2) If the result of the calculation is a positive number, the amount is disclosed as a negative number, but only to the extent that the absolute value of the number does not exceed the total amount of closing costs; (Comment 37(h)(1)(ii)-1)
    3. Downpayment (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) /Funds from Borrower. Labeled “Down Payment/Funds from Borrower”.
      1. In a purchase transaction, as defined in § 1026.37(a)(9)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , disclosed as the amount determined by subtracting the sum of the loan amount, disclosed under § 1026.37(b)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and any amount of existing loans assumed or taken subject to that will be disclosed under § 1026.38(j)(2)(iv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , from the sale price of the property disclosed under § 1026.37(a)(7)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , except as required by § 1026.38(h)(1)(iii)(A)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ; (§ 1026.37(h)(1)(iii)(A)(1)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      2. For a purchase transaction as defined in § 1026.37(a)(9)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) that is a simultaneous subordinate financing transaction, a transaction involving or improvements to be made on the property, or when the sum of the loan amount disclosed under § 1026.37(b)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and any amount of existing loans assumed or taken subject to on the Closing Disclosure under § 1026.38(j)(2)(iv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) exceeds the sale price of the property disclosed under § 1026.37(a)(7)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , disclosed as the amount of estimated funds from the consumer determined in accordance with § 1026.37(h)(1)(v) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ; (§ 1026.37(h)(1)(iii)(A)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      3. For all other transactions, disclosed as the amount of estimated funds from the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) determined in accordance with § 1026.37(h)(1)(v). (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (§ 1026.37(h)(1)(iii)(B)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    4. Deposit.
      1. For a purchase transaction, disclosed as the amount that is paid to the seller or held in trust or escrow by an attorney or other party under the terms of the agreement for the sale of the property, as a negative number, labeled “Deposit”;
      2. For all other transactions, disclosed as $0. (§ 1026.37(h)(1)(iv)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    5. Funds for Borrower. Disclosed as the amount of funds for the consumer, labeled “Funds for Borrower. Determined in accordance with § 1026.37(h)(1)(v) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) by subtracting the sum of the loan amount disclosed under § 1026.37(b)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and any amount of existing loans assumed or taken subject to that will be disclosed on the Closing Disclosure under § 1026.38(j)(2)(iv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (excluding any closing costs financed disclosed under § 1026.37(h)(1)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) from the total amount of all existing debt being satisfied in the transaction. The total amount of all existing debt being satisfied in the transaction is the sum of the amounts that will be disclosed on the Closing Disclosure in the summaries of transactions table under §§ 1026.38(j)(1)(ii), (iii), and (v) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , as applicable.
      1. If the calculation yields a positive number, that amount is disclosed under the heading “Down Payment/Funds from Borrower,” (§§ 1026.37(h)(1)(iii)(A)(2) or (B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , as applicable) and $0 is disclosed under the heading “Funds for Borrower,” under § 1026.37(h)(1)(v) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ; (§ 1026.37(h)(1)(v)(A)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      2. If the calculation yields a negative amount, the credit union discloses that amount as a negative number under the heading “Funds for Borrower,” (§ 1026.37(h)(1)(v)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and as $0 under the heading “Down Payment/Funds from Borrower under §§ 1026.37(h)(1)(iii)(A)(2) or (B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , as applicable. (§ 1026.37(h)(1)(v)(B)); (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      3. If the calculation yields “0,” then $0 is disclosed under both headings under §§ 1026.37(h)(1)(iii)(A)(2) or (B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , as applicable, and § 1026.37(h)(1)(v) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (§ 1026.37(h)(1)(v)(C) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    6. Seller Credits (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . Determined by totaling the amount the seller will pay for Total Loan Costs under § 1026.37(f)(4) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and Total Other Costs under § 1026.37(g)(5) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) disclosed as a negative number, to the extent known by the credit union at the time of the delivery of the Loan Estimate, labeled “Seller Credits”. (§ 1026.37(h)(1)(vi)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      1. Non-specific seller credits. Determine whether general payments from the seller to the consumer that do not pay for a particular fee are disclosed in the seller credits row of the Calculating Cash to Close table. (Comment 1026.37(h)(1)(vi)-1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      2. Seller credits for specific charges. Determine whether credits for specific items disclosed under §§ 1026.37(f) and (g) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) are disclosed, at the credit union’s option either:
        1. In the seller credits row of the Calculating Cash to Close table together with any non-specific seller credits; or
        2. By reducing the amount of the specific charge in the Loan Costs or Other Costs table. (Comment 1026.37(h)(1)(vi)-2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    7. Adjustments and Other Credits (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . Determined by combining the Total Loan Costs (determined under § 1026.37(f) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) and Total Other Costs (determined under § 1026.37(g)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) that are paid by persons other than the loan originator (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , credit (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) union, consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , or seller, together with any other amounts not otherwise disclosed under §§ 1026.37(f) or (g) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) that are required to be paid by the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) at closing in a transaction using the down payment/funds from borrower calculation under § 1026.37(h)(1)(iii)(A)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) or pursuant to a purchase and sale contract, labeled “Adjustments and Other Credits”. (§ 1026.37(h)(1)(vii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

      NOTE: This includes amounts known at the time the Loan Estimate is issued that are expected to be paid at closing by third parties not otherwise associated with the transaction, such as gifts from family members, or others not associated with the transaction, as well as proceeds from subordinate financing or other sources. (Comment 1026.37(h)(1)(vii)-1 and -5 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    8. Estimated Cash to Close. The sum of the amounts of the components required for Calculating Cash to Close disclosed as under §§ 1026.37(h)(1)(i) through (vii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (§ 1026.37(h)(1)(viii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  10. Closing Cost Details: Optional Alternative Calculating Cash To Close Table for Transactions Without A Seller or for Simultaneous Subordinate Financing (Page 2 of the Loan Estimate). If the transaction does not involve a seller or for Simultaneous Subordinate Financing, and the credit union has chosen to provide the optional Alternative Calculating Cash to Close table modeled in Form H-24(G) in Appendix H (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , determine whether the credit union accurately discloses the total amount of cash or other funds that must be provided by the consumer at consummation, itemized into the following component amounts: (§ 1026.37(h)(2)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    1. Loan Amount. (§ 1026.37(h)(2)(i)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    2. Total Closing Costs. Disclosed as a negative number if the amount disclosed under § 1026.37(g)(6 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) is a positive number, and disclosed as a positive number if the amount disclosed under § 1026.37(g)(6 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) is a negative number. (§ 1026.37(h)(2)(ii)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    3. Total Payoffs and Payments. Disclosed as the total amount of payoffs and payments to be made to third parties that are not otherwise disclosed. (§ 1026.37(h)(2)(iii)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    4. Cash to Close. Disclosed as the amount of cash or other funds due from or to the consumer and a statement of whether the disclosed estimated amount is due from or to the consumer. The amount must be calculated as the sum of the amounts disclosed under “Loan Amount,” “Total Closing Costs”,” and “Total Payoffs and Payments”. (§ 1026.37(h)(2)(iv)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    5. Closing Costs Financed (Paid from your Loan Amount). Disclosed as the sum of the amounts under “Loan Amount,” and “Total Payoffs and Payments.” The sum is disclosed only to the extent it is greater than “0,” and it is less than or equal to the amount disclosed under “Total Closing Costs”. (§ 1026.37(h)(2)(v)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)

      NOTE: The optional Alternative Calculating Cash to Close table may only be provided in transactions without a seller or for simultaneous subordinate financing, In a purchase transaction the optional alternative disclosure may be used for the simultaneous subordinate financing Loan Estimate only if the first-lien Closing Disclosure will record the entirety of the transaction. The use of the alternative table for transactions without a seller or for simultaneous subordinate financing is optional, but credit unions may only use this alternative estimated cash to close disclosure in conjunction with the alternative disclosure under § 1026.37(d)(2). (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (Comment 1026.37(h)(2)-1 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ).
  11. Closing Cost Details: Adjustable Payment (AP) Table (Page 2 of the Loan Estimate). For loans where the periodic principal and interest payment may change after consummation (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) based on a factor other than an interest rate adjustment, or for seasonal payment products as described in § 1026.37(a)(10)(ii)(E) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , determine whether the credit union discloses a separate table under the master headings “Closing Cost Details” and “Adjustable Payment (AP) Table” that contains the following information and satisfies the following requirements:
    1. Interest Only Payments. The disclosure states yes or no to the question of whether the transaction is an interest only product under § 1026.37 (a)(10)(ii)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and, if the answer is yes, the disclosure states the period during which interest only periodic payments are scheduled. (§ 1026.37(i)(1)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    2. Optional Payments. The disclosure states yes or no to the question whether the terms of the legal obligation expressly provide that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) may elect to pay a specified periodic principal and interest payment in an amount other than the scheduled amount of the payment, and, if the answer is yes, the disclosure states the period during which the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) may elect to make such payments. (§ 1026.37(i)(2)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    3. Step Payments. The disclosure states yes or no to the question whether the transaction is a step payment product under § 1026.37(a)(10)(ii)(C) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and, if the answer is yes, the disclosure states the period during which the regular periodic payments are scheduled to increase. (§ 1026.37(i)(3)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    4. Seasonal Payments. The disclosure states yes or no to the question whether the transaction is a seasonal payment product under § 1026.37(a)(10)(ii)(E) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and, if the answer is yes, the disclosure states the period during which periodic payments are not scheduled. (§ 1026.37(i)(4) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    5. Principal and Interest Payments. This label is immediately preceded by the applicable unit period and the disclosures must contain the following information:
      1. The number of the payment of the first periodic principal and interest payment that may change under the terms of the legal obligation (counting from the first periodic payment due after consummation (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ), and the amount or range of the periodic principal and interest payment for such payment, labeled “First Change/Amount”; (§ 1026.37(i)(5)(i)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      2. The frequency of subsequent changes to the periodic principal and interest payment, labeled “Subsequent Changes”; and (§ 1026.37(i)(5)(ii)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      3. The maximum periodic principal and interest payment that may occur during the term of the transaction, and the first periodic principal and interest payment that can reach such maximum, counting from the first periodic payment due after consummation (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , labeled “Maximum Payment”. (§ 1026.37(i)(5)(iii)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)

        NOTE: The AP table is required only if the periodic principal and interest payment may change after consummation based on a loan term other than a change to the interest rate, or the transaction contains a seasonal payment product feature as described in § 1026.37(a)(10)(ii)(E (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ). If the transaction does not contain such loan terms, this table may not appear on the Loan Estimate. (Comment 1026.37(i)-1 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  12. Closing Cost Details: Adjustable Interest Rate (AIR) Table. If the interest rate may increase after consummation, determine whether the credit union discloses, as a separate table under the master headings “Closing Cost Details” and “Adjustable Interest Rate (AIR) Table,” the following information and satisfied the following requirements: (§ 1026.37(j)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    1. Index + Margin. Disclosed if the interest rate may adjust and the product type is not a “Step Rate” under § 1026.37(a)(10)(i)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . The disclosure must show the index upon which the adjustments to the interest rate are based and the margin that is added to the index to determine the interest rate, if any, labeled “Index + Margin.”. (§ 1026.37(j)(1)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    2. Interest Rate Adjustments. If the product type is a “Step Rate” and not also an “Adjustable Rate” under § 1026.37(a)(10)(i)(A) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , the disclosure must show the maximum amount of any adjustments to the interest rate that are scheduled and pre-determined, labeled “Interest Rate Adjustments”. (§ 1026.37(j)(2)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    3. Initial Interest Rate. The disclosure must show the initial interest rate at consummation (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) of the loan transaction. (§ 1026.37(j)(3)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    4. Minimum and Maximum Interest Rates. The disclosure must show the minimum and maximum interest rates for the loan, after any introductory period expires, labeled “Minimum/Maximum Interest Rate”. (§ 1026.37(j)(4)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    5. Frequency of Adjustments. The following information, under the subheading “Change Frequency” is disclosed:
      1. The month when the interest rate after consummation (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) may first change, calculated from the date interest for the first scheduled periodic payment begins to accrue, labeled “First Change”; and
      2. The frequency of interest rate adjustments after the initial adjustment to the interest rate, labeled, “Subsequent Changes”. (§ 1026.37(j)(5)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    6. Limits on Interest Rate Changes. The following information, under the subheading “Limits on Interest Rate Changes,” is disclosed:
      1. The maximum possible change for the first adjustment of the interest rate after consummation (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , labeled “First Change”; and
      2. The maximum possible change for subsequent adjustments of the interest rate after consummation (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , labeled “Subsequent Changes.” (§ 1026.37(j)(6)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)

        NOTE: If the legal obligation does not permit the interest rate to adjust after consummation, the AIR table is not permitted to appear on the Loan Estimate. The credit union may not disclose a blank table or a table with “N/A” inserted within each row. (Comment 1026.37(j)-1 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  13. Additional Information About This Loan; Contact Information (Page 3 of the Loan Estimate). Determine whether the credit union accurately discloses under the master heading, “Additional Information About This Loan,” the following information:
    1. Lender/Mortgage Broker. The name and “NMLS ID/License ID” for the credi (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) t union (labeled “Lender”) and the mortgage broker (labeled “Mortgage Broker”), if any. If the credit union or mortgage broker has not been assigned an NMLSR ID, the license number or other unique identifier issued to the credit union or mortgage broker by the applicable jurisdiction or regulating body must be disclosed, with the abbreviation for the State (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) of the applicable jurisdiction or regulatory body stated before the word “License” in the label, if any. (§ 1026.37(k)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    2. Loan Officer. The name and NMLSR ID of the individual loan officer (labeled “Loan Officer” and “NMLS ID/License ID,” respectively) of the credit (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) union and the mortgage broker, if any, who is the primary contact for the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . If the individual loan officer has not been assigned an NMLSR ID, the license number or other unique identifier issued by the applicable jurisdiction or regulating body with which the loan officer is licensed and/or registered shall be disclosed, with the abbreviation for the State (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) of the applicable jurisdiction or regulatory body stated before the word “License” in the label, if any. (§ 1026.37(k)(2)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    3. Email/Phone (respectively). The email address and telephone number of the loan officer. (§ 1026.37(k)(3)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
  14. Additional Information About This Loan: Comparisons (Page 3 of the Loan Estimate). Determine whether the credit union accurately discloses the following information for comparison purposes and includes the statement “Use these measures to compare this loan with other loans”: (§ 1026.37(l)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    1. In 5 years (§ 1026.37(l)(1)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      1. The total principal, interest, mortgage insurance, and loan costs scheduled to be paid through the end of the 60th month after the due date of the first periodic payment, expressed as a dollar amount, along with the statement “Total you will have paid in principal, interest, mortgage insurance, and loan costs”; and
      2. The principal scheduled to be paid through the end of the 60th month after the due date of the first periodic payment, expressed as a dollar amount, along with the statement “Principal you will have paid off”;
    2. Annual Percentage Rate (APR). Expressed as a percentage, and the following statement: “Your costs over the loan term expressed as a rate. This is not your interest rate”. (§ 1026.37(l)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    3. Total Interest Percentage (TIP). The total amount of interest that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) will pay over the life of the loan, expressed as a percentage of the amount of credit (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) extended, using the term “Total Interest Percentage,” the abbreviation “TIP,” and the statement “The total amount of interest that you will pay over the loan term as a percentage of your loan amount.” (§ 1026.37(l)(3)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)

      NOTE: The Total Interest Percentage includes prepaid interest that the consumer will pay, but does not include prepaid interest that someone other than the consumer will pay. (Comment 1026.37(l)(3)-1 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  15. Additional Information About This Loan: Other Considerations (Page 3 of the Loan Estimate). Determine whether the credit union accurately discloses the following: (§ 1026.37(m)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    1. Appraisal. For transactions subject to 15 U.S.C. § 1639(h) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) or § 1691(e) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , as implemented in this part or Regulation B, 12 CFR 1002 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , respectively, a statement, labeled “Appraisal,” that: (§ 1026.37(m)(1)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      1. The credit (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) union may order an appraisal to determine the value of the property identified in § 1026.37(a)(6) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and may charge the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) for that appraisal;
      2. The credit (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) union will promptly provide the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) a copy of any appraisal, even if the transaction is not consummated; and
      3. The consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) may choose to pay for an additional appraisal of the property for the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) 's use.
    2. Assumption. A statement of whether a subsequent purchaser of the property may be permitted to assume the remaining loan obligation on its original terms. (§ 1026.37(m)(2)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    3. Homeowner's Insurance. At the option of the credit union (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , a statement that homeowner's insurance is required on the property and that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) may choose the insurance provider. (§ 1026.37(m)(3)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    4. Late Payment. A statement detailing any charge that may be imposed for a late payment; stated as a dollar amount or percentage charge of the late payment amount; and the number of days that a payment must be late to trigger the late payment fee. (§ 1026.37(m)(4)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    5. Refinance. The following statement: “Refinancing this loan will depend on your future financial situation, the property value, and market conditions. You may not be able to refinance this loan.”. (§ 1026.37(m)(5)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    6. Servicing. A statement of whether the credit (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) union intends to service the loan or transfer the loan to another servicer. (§ 1026.37(m)(6)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    7. Liability after Foreclosure. If the purpose of the credit (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) transaction is to refinance an extension of credit (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) as described in § 1026.37(a)(9)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , a brief statement that certain State (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) law protections against liability for any deficiency after foreclosure may be lost, the potential consequences of the loss of such protections, and a statement that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) should consult an attorney for additional information. (§ 1026.37(m)(7) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    8. Construction Loans. In a transaction that involves a new construction, if the credit union reasonably expects settlement will occur more than 60 days after the Loan Estimate is issued and wishes to retain the option to provide a revised disclosure, a clear and conspicuous statement that a revised disclosure may be issued any time prior to 60 days before consummation, pursuant to § 1026.19(e)(3)(iv)(F) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (§ 1026.37(m)(8) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  16. Additional Information About This Loan: Confirm Receipt (Page 3 of the Loan Estimate). If the credit union chooses to provide a signature statement, determine whether the credit union accurately provides the following: “By signing, you are only confirming that you have received this form. You do not have to accept this loan because you have signed or received this form.” If the credit (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) union does not include a line for the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) 's signature, the credit (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) union discloses the following statement (labeled “Loan Acceptance”): “You do not have to accept this loan because you have received this form or signed a loan application.” (§ 1026.37(n)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
  17. Form of disclosures.2 Determine whether the credit union made the disclosures required by § 1026.37 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) clearly and conspicuously in writing, in a form that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) may keep, with disclosures grouped together and segregated from everything else, containing only the information required by §§ 1026.37 (a)-(n) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , made in the same order, and positioned relative to the master headings, headings, subheadings, labels, and similar designations in the same manner, as shown in form H-24, set forth in Appendix H (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) : (§§ 1026.37(o)(1-2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    1. Form H-24 required. Determine whether, for a transaction subject to § 1026.19(e) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) that is a federally related mortgage loan, as defined in Regulation X, 12 CFR § 1024.2 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , the credit union uses form H-24, set forth in Appendix H (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (§ 1026.37(o)(3)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    2. Substantially similar disclosures. Determine whether the credit union makes the disclosures with headings, content, and format substantially similar to form H-24, set forth in Appendix H (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) for any other transaction subject to § 1026.37 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (§ 1026.37(o)(3)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    3. Rounding - nearest dollar. Determine whether the credit union accurately rounds the following figures to the nearest whole dollar: (§ 1026.37(o)(4)(i)(A) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      1. The dollar amounts for Loan Terms required by §§ 1026.37(b)(6)-(7) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , (i.e., adjustments after consummation and details about prepayment penalty and balloon payments);
      2. The dollar amounts for Projected Payments or range of payments required by § 1026.37(c)(1)(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (i.e., minimum and maximum amounts of principal and interest for projected periodic payments or range of payments);
      3. The dollar amounts for Mortgage Insurance required to be disclosed by § 1026.37(c)(2)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (i.e., itemization of maximum amount of mortgage insurance premiums);
      4. The dollar amounts for Escrow required to be disclosed by § 1026.37(c)(2)(iii (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) );
      5. The dollar amounts for Taxes, Insurance and Assessments required to be disclosed by § 1026.37(c)(4)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ;
      6. The dollar amounts for Loan Costs required to be disclosed by § 1026.37(f) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (i.e., Origination charges, Services You Cannot Shop For, Services You Can Shop For, and Total Loan Costs);
      7. The dollar amounts for Other Costs required by § 1026.37(g) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (i.e., Taxes and Other Government Fees, Prepaids (other than per diem prepaid interest), Initial Escrow Payment at Closing (other than monthly amounts of initial escrow payments), Other, Total Other Costs, and Total Closing Costs) except as noted for percentages;
      8. The dollar amounts for Calculating Cash to Close required to be disclosed by § 1026.37(h) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ; and
      9. The dollar amounts for the Adjustable Payment (AP) Table required to be disclosed by § 1026.37(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .
      10. The dollar amounts for Comparisons required to be disclosed by § 1026.37(l (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ).
    4. Rounding nearest whole cent. Determine that the credit union rounds or truncates the following to the nearest whole cent pursuant to § 1026.37(o)(4)(i)(A) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) :
      1. The per diem amount required by § 1026.37(g)(2)(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (prepaid interest paid per day); and
      2. The figures disclosed pursuant to §§ 1026.37(g)(3)(i)-(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (initial escrow payment at closing for homeowner’s insurance, mortgage insurance, and property taxes) and § 1026.37(g)(3)(v) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (additional escrow items).
    5. Loan amount. Determine that the credit union did not round the loan amount disclosed pursuant to § 1026.37(b)(1 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ), and truncated whole numbers at the decimal point. (§ 1026.37(o)(4)(i)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    6. Total periodic payment. Determine that the credit union accurately rounds the total periodic payment required by § 1026.37(c)(2)(iv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , if any of the component amounts of the figures disclosed pursuant to § 1026.37(o)(4)(i)(A) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) are rounded to the nearest whole dollar. (§ 1026.37(o)(4)(i)(C) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    7. Percentages. Determine that the credit union discloses the following percentages by rounding the exact amounts to three decimal places and then dropping any trailing zeros that occur to the right of the decimal point. (§ 1026.37(o)(4)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) This procedure applies to the following:
      1. Interest rate and adjustments after consummation (i.e. adjustments to loan amount, interest rate, and periodic payment) disclosed pursuant to §§ 1026.37(b)(2) and (6) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ;
      2. Points as a percentage of the loan amount disclosed pursuant to § 1026.37(f)(1)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ;
      3. Percentage of prepaid interest to be paid per day disclosed pursuant to § 1026.37(g)(2)(iii (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) );
      4. Index + Margin, Initial Interest Rate, Minimum/Maximum Interest Rate, and Limits on Interest Rate Changes (as disclosed on the Adjustable Interest Rate (AIR) Table) disclosed pursuant to § 1026.37(j) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ; and
      5. Annual percentage rate – disclosed per § 1026.37(l)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      6. Total interest percentage disclosed pursuant to § 1026.37(l)(3). (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)

Closing Disclosure

  1. Closing Disclosure. Determine whether the disclosures required for the Closing Disclosure are accurately completed and include the statement: “This form is a statement of final loan terms and closing costs. Compare this document with your Loan Estimate.” (§ 1026.38(a)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  2. Closing Information (Page 1 of the Closing Disclosure). Determine whether all fields required by § 1026.38(a)(3 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) are complete and accurate:
    1. Date Issued. Indicating the date disclosures are delivered. (§ 1026.38(a)(3)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    2. Closing Date. (§ 1026.38(a)(3)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    3. Disbursement Date. (§ 1026.38(a)(3)(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    4. Settlement Agent. (§ 1026.38(a)(3)(iv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    5. File #. Disclosing the identification number assigned to the transaction by the settlement agent. (§ 1026.38(a)(3)(v) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    6. Property. The address or location of the property as disclosed in the Loan Estimate. (§ 1026.38(a)(3)(vi) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    7. Sale Price. For transactions where there is a seller, the sale price, labeled “Sale Price,” and where there is no seller, the appraised property value labeled “Appraised Prop. Value.”. (§§ 1026.38(a)(3)(vii)(A)-(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

      NOTE: If the credit union has not obtained an appraisal, the credit union may disclose the estimated value of the property, using the label “Estimated Prop. Value.” (Comment §1026.38(a)(3)(vii)-1)
  3. Transaction information (Page 1 of the Closing Disclosure). Determine whether all fields required by § 1026.38(a)(4) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) are complete and accurate:
    1. Borrower. The consumer’s name and mailing address, labeled “Borrower.” (§ 1026.38(a)(4)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    2. Seller. Where applicable, the seller’s name and mailing address, labeled “Seller.” (§ 1026.38(a)(4)(ii)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    3. Lender. The name of the credit union making the disclosure, labeled “Lender.” (§ 1026.38(a)(4)(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ).
  4. Loan Information (Page 1 of the Closing Disclosure). Determine whether all fields required by § 1026.38(a)(5) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) are complete and accurate:
    1. Loan Term. (§ 1026.38(a)(5)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    2. Purpose. (§ 1026.38(a)(5)(ii (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    3. Product. (§ 1026.38(a)(5)(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    4. Loan Type. (§ 1026.38(a)(5)(iv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    5. Loan ID #. (§ 1026.38(a)(5)(v) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    6. Mortgage Insurance Case Number (MIC #). The case number for any mortgage insurance policy, if required by the credit union. (§ 1026.38(a)(5)(vi) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  5. Loan Terms (Page 1 of the Closing Disclosure). Determine whether the credit union discloses, in a separate table labeled “Loan Terms,” the information required to be disclosed on the Loan Estimate under § 1026.37(b) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) reflecting the terms of the legal obligation at consummation. (§ 1026.38(b) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  6. Projected Payments (Page 1 of the Closing Disclosure). Determine whether the credit union discloses, in a separate table labeled “Projected Payments,” the projected payments or range of payments (in the same manner as required on the Loan Estimate under §§ 1026.37(c)(1) - (4)(v) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) reflecting the terms of the legal obligation at consummation. Determine whether the credit union referred to the Escrow Account disclosure required by § 1026.38(l)(7) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and calculated the estimated escrow payments: (§§ 1026.38(c)(1)-(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    1. For transactions subject to RESPA, under the escrow account analysis described in Regulation X, § 1024.17 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (§ 1026.38(c)(1)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    2. For transactions not subject to RESPA, either calculated under the escrow account analysis described in Regulation X, § 1024.17 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , or in the manner set forth in § 1026.37(c)(5) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (§ 1026.38(c)(1)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  7. Costs at Closing (Page 1 of the Closing Disclosure). Determine whether the credit union discloses:
    1. Closing Costs. Disclosed as the sum of the dollar amounts disclosed on page two of the Closing Disclosure, pursuant to § 1026.38(f)(4) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (Loan Costs), § 1026.38(g)(5) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (Other Costs), and § 1026.38(h)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (Lender Credits), together with a statement referring the consumer to the disclosures on page two. (§§ 1026.38(d)(1)(i)(A)-(E) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    2. Cash to Close. Disclosed as the sum of the dollar amounts calculated in accordance with the Calculating Cash to Close table (§ 1026.38(i)(9)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ), together with a statement referring the consumer to the disclosures on page two (§§ 1026.38(d)(1)(ii)(A) – (B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ), or
    3. Cash to Close (for simultaneous subordinate financing). Disclosed as the amount calculated according to § 1026.38(e)(5)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , together with a statement of whether the amount is due from or to the consumer and a reference to the alternative calculating Cash to Close table required pursuant to § 1026.38(e) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (§§ 1026.38(d)(2)(i) – (iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  8. Closing Cost Details: Loan Costs (Page 2 of the Closing Disclosure). Determine whether the credit union disclosed all costs associated with the transaction, with columns stating whether the charge was borrower-paid at or before closing, seller-paid at or before closing, or paid by others, under the following subheadings:
    1. Origination Charges. Itemized amounts paid for charges disclosed on the Loan Estimate (§ 1026.37(f)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) and the total of borrower-paid amounts paid at or before closing; together with:
      1. The compensation (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) paid by the credit union (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) to a third-party loan originator (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , and
      2. The name of the third-party loan originator (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) receiving payment. (§ 1026.38(f)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    2. Services Borrower Did Not Shop For. Itemized costs for each settlement service the credit (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) union required but did not allow the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) to shop for, with name of recipient, amount, and total costs designated borrower-paid at or before closing. Items listed in the Loan Estimate (§ 1026.37(f)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) are disclosed here if the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) was provided a written list of settlement service providers under § 1026.19(e)(1)(vi)(C) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) selected a settlement service provider from that written list. (§ 1026.38(f)(2)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    3. Services Borrower Did Shop For. Itemized costs for each service required by the credit (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) union, that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) shopped for in accordance with § 1026.19(e)(1)(vi)(A) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , with the amount, the name of recipient, and the total costs designated as borrower-paid at or before closing. If these items were disclosed on the Loan Estimate pursuant to § 1026.37(f)( (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) 3), they are disclosed here if the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) was provided a written list of settlement service providers and did not select a settlement service provider from that written list. (§ 1026.38(f)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    4. Total Loan Costs (Borrower-Paid). The sum of the amounts disclosed under § 1026.38(f)(5) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) as borrower-paid for the origination charge, services the borrower did not shop for and services the borrower did shop for. (§ 1026.38(f)(4) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    5. Loan Costs Subtotals. Calculation of the total borrower-paid costs at or before closing, showing each subtotal for the origination charge, services the borrower did not shop for, and services the borrower did shop for. (§ 1026.38 (f)(5)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
  9. Cost Details: Other Costs (Page 2 of the Closing Disclosure). Determine whether the credit union disclosed all costs associated with the transaction (other than those disclosed in the “Loan Costs” table) with columns stating whether the charge was borrower-paid at or before closing, seller-paid at or before closing, or paid by others, including:
    1. Taxes and Other Government Fees. All taxes and government fees to be paid by the borrower at or before closing, including recording fees and transfer taxes, accurately itemized. Determine that the itemized transfer tax is accompanied by the name of the government entity assessing the transfer tax. (§ 1026.38(g)(1)(i)-(ii)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)

      NOTE: For additional guidance on taxes and other government fees, see Comments 1026.37(g)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) For additional guidance on transfer taxes and recording fees, see Comments 1026.38(g)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .
    2. Prepaids. Accurately itemized prepaid charges described in the borrower’s Loan Estimate as required by § 1026.37(g)(2), (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) the name of the person ultimately receiving the prepaid payment or the government entity assessing the property tax charged, and the total of all amounts designated as borrower-paid at or before closing. If prepaid interest is not collected for any period between closing and the date from which interest will be collected with the first monthly payment, then $0.00 is disclosed. (§ 1026.38(g)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    3. Initial Escrow Payment at Closing. Accurate itemizations of each escrow amount required at closing as described on the borrower’s Loan Estimate pursuant to § 1026.37(g)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (e.g., homeowner’s insurance, mortgage insurance, property taxes, etc.), applicable aggregate adjustments pursuant to § 1024.17(d)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , and the total of all amounts designated as borrower-paid at or before closing. (§ 1026.38(g)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    4. Other. All charges, accurately itemized, for services required or related to the borrower’s transaction that are in addition to the charges disclosed in the Loan Costs table (§ 1026.38(f) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) and in the Other Costs table (§§ 1026.38(g)(1)-(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ), for services required or obtained in the real estate closing by the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , the seller, or other party; the name of the person (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ultimately receiving the payment; and the total of all such itemized amounts that are designated borrower-paid at or before closing, with the applicable designations for items that are optional or are components of title insurance services. (§§ 1026.38(g)(4)(i)-(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    5. Total Other Costs (Borrower-Paid). Accurately totaled and disclosed sum of all amounts disclosed as borrower-paid. (§ 1026.38(g)(5) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    6. Other Costs Subtotals. Accurately added the individual subtotals in this “Closing Costs Details – Other Costs” table disclosed under §§ 1026.38(g)(1)-(4) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) to produce the total. (§ 1026.38(g)(6) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  10. Closing Cost Details: Total Closing Costs (Page 2 of the Closing Disclosure). Determine whether the credit union:
    1. Follows the description, labeling, and ordering requirements for this table; and (§ 1026.38(h)(4) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    2. Accurately discloses the following closing costs totals:
      1. Total Closing Costs (Borrower Paid). The sum of subtotals for Closing Costs (§ 1026.38(h)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) and Lender Credits (§ 1026.38(h)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) (i.e., the following two items in this list). (§ 1026.38(h)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      2. Closing Costs Subtotals. Consisting of the sum of “Loan Cost Subtotals” (§ 1026.38(f)(5) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and the “Other Costs Subtotals” (§ 1026.38(g)(6) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ), designated as borrower-paid at or before closing; and the sum of costs paid at and before closing by the seller or other parties (as disclosed pursuant to §§ 1026.38(f) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and (g)). (§ 1026.38(h)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      3. Lender Credits. For general credits from the credit union for closing costs (as described in § 1026.37(g)(6)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , shown as a negative number, and designated as borrower-paid at closing. (§ 1026.38(h)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

        NOTE: Credits that are for specific charges should be reflected in the Paid by Others column in the Closing Cost Details table (with a notation of “(L)” for lender permitted) under §§ 1026.38(f) and (g (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ). (Comment 1026.38(h)(3)-1 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

        NOTE: If a refund is provided pursuant to § 1026.19(f)(2)(v) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , determine whether the credit union has provided a statement explaining that the refund (the amount described in the Loan Estimate under § 1026.37(g)(6)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) includes a credit for the amount that exceeds the limitations on increases in closing costs under § 1026.19(e)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , and the amount of such credit.
  11. Calculating Cash to Close Page 3 of the Closing Disclosure). Determine whether the credit union, for each of the following items, accurately includes the amount from the most recent Loan Estimate provided to the consumer, compared to the amount disclosed in the “Final” column, and provides the necessary answer to the question “Did This Change?” (with items in the latter column disclosed more prominently than other disclosures). (§§ 1026.38(i)(1)(i)-(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    1. Total Closing Costs. The Total Closing Costs on the Calculating Cash to Close table of the most recent Loan Estimate disclosed under § 1026.37(h)(1)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) compared to the final “Total Closing Costs” disclosed under § 1026.38(h)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , and:
      1. If the amounts are different (unless due to rounding), the credit union has provided: (§§ 1026.38(i)(1)(i)-(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
        1. A statement of that fact; (§ 1026.38(i)(1)(iii)(A)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
        2. If the difference in the “Total Closing Costs” is attributable to differences in itemized charges that are included in either or both subtotals, a statement that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) should see the Total Loan Costs (under § 1026.38(f)(4) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) and Total Other Costs (under § 1036.38(g)(5) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) subtotals disclosed (together with references to such disclosures), as applicable; and (§ 1026.38(i)(1)(iii)(A)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
        3. If the increase exceeds the limitations on increases in closing costs under § 1026.19(e)(3), (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) a statement that such increase exceeds the legal limits by the dollar amount of the excess, and if any refund is provided pursuant to § 1026.19(f)(2)(v) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , a statement directing the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) to the disclosure required under § 1026.38 (h)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . or, if a principal reduction is used to provide the refund, a statement directing the consumer to the principal reduction disclosure under § 1026.38(j)(1)(v) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . The dollar amount must equal the sum total of all excesses of the limitations on increases in closing costs under § 1026.19(e)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , taking into account the different methods of calculating excesses of the limitations on increases in closing costs under §§ 1026.19(e)(3)(i) and (ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (§ 1026.38(i)(1)(iii)(A)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      2. If the amount disclosed under § 1026.38(i)(l)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (i.e., amount in the Final column) is equal to the amount disclosed under § 1026.38(i)(l)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (i.e., amount copied over from the most recent Loan Estimate), a statement of that fact. (§ 1026.38(i)(1)(iii)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    2. Closing Costs Paid Before Closing. Under the subheading “Loan Estimate,” the dollar amount “$0,” compared to the final amount of “Total Closing Costs” disclosed under § 1026.38(h)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and designated as borrower-paid before closing, stated as a negative number, and (§§ 1026.38(i)(2)(i)-(iii)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) :
      1. If these amounts are different (unless the difference is due to rounding), the credit union has provided a statement of that fact, along with a statement that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) paid such amounts prior to consummation (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) of the transaction (§ 1026.38(i)(2)(iii)(A) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ); or if the amount disclosed under § 1026.38(i)(2)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (amount in the Final column) is equal to the amount disclosed under § 1026.38(i)(2)(i)(0) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , a statement of that fact. (§ 1026.38(i)(2)(iii)(B)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    3. Closing Costs Financed (Paid from your Loan Amount). Under the subheading “Loan Estimate,” the amount disclosed on Calculating Cash to Close table on the most recent Loan Estimate under § 1026.37(h)(1)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , compared to the actual amount of the closing costs that are to be paid out of loan proceeds, if any, stated as a negative number, under the subheading “Final”; and, (§§ 1026.38(i)(3)(i)-(iii)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)

      NOTE: For simultaneous subordinate financing transactions, regardless of whether a sale price was disclosed under § 1026.38(j)(1)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , no sale price will be included in the closing costs financed calculation as payment to third parties. (Comment 1026.38(i)(3)-1.ii (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      1. If the amounts are different (unless the difference is due to rounding), a statement of that fact, along with a statement that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) included the closing costs in the loan amount, which increased the loan amount; or, (§ 1026.38(i)(3)(iii)(A)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      2. If the amount disclosed under § 1026.38(i)(3)(ii)( (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) i.e., amount in the Final column) is equal to the amount disclosed pursuant to § 1026.38(i)(3)(i (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) (i.e., amount copied over from the most recent Loan Estimate), a statement of that fact. (§ 1026.38(i)(3)(iii)(B)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
         
    4. Down Payment/Funds from Borrower.
      1. Under the subheading “Loan Estimate,” the amount disclosed on the most recent Loan Estimate in the Calculating Cash to Close table under § 1026.37(h)(1)(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , labeled “Down Payment/Funds from Borrower”.
      2. Under the subheading “Final”: (§ 1026.38(i)(4)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
        1. In a purchase transaction as defined in § 1026.38(a)(9)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , the amount determined by subtracting the sum of the loan amount disclosed under § 1026.38(b) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and any amount of existing loans assumed or taken subject to that is disclosed under § 1026.38(j)(2)(iv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) from the sale price of the property disclosed under § 1026.38(a)(3)(vii)(A (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ), labeled “Down Payment/Funds from Borrower,” except as required by § 1026.38(i)(4)(ii)(A)(2 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) );
        2. In a purchase transaction that is a simultaneous subordinate financing or that involves improvements to be made on the property, or when the sum of the loan amount disclosed under § 1026.38(b) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and any amount of existing loans assumed or taken subject to that is disclosed under § 1026.38(j)(2)(iv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) exceeds the sale price disclosed under § 1026.38(a)(3)(vii)(A) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , the amount of funds from the consumer as determined in accordance with § 1026.38(i)(6)(iv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) labeled “Down Payment/Funds from Borrower,” or
        3. In all transaction not subject to § 1026.38(i)(4)(ii)(A) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , the amount of funds from the consumer as determined in accordance with § 1026.38(i)(6)(iv (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ), labeled “Down Payment/Funds from Borrower.”
      3. Under the subheading “Did this change?,” disclosed more prominently than the other disclosures under § 1026.38(i)(4) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) :
        1. If the amount disclosed under § 1026.38(i)(4)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (such as, amount in the Final column) is different, unless due to rounding, from the amount disclosed under § 1026.38(i)(4)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (such as, amount copied over from the most recent Loan Estimate), a statement of that fact, along with a statement that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) increased or decreased this payment and can see further details in the “Summaries of Transactions” table; or (§ 1026.38(i)(4)(iii)(A) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
        2. If the amount disclosed under § 1026.38(i)(4)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) is equal to the amount disclosed under § 1026.38(i)(4)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , a statement of that fact. (§ 1026.38(i)(4)(iii)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    5. Deposit. Under the subheading “Loan Estimate,” the Deposit amount disclosed on the Calculating Cash to Close table on the most recent Loan Estimate under § 1026.37(h)(1)(iv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , labeled “Deposit”. Under the sub-heading “Final”, on the Summaries of Transactions table on the Closing Document the amount under § 1026.38(j)(2)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , stated as a negative number. Under the subheading “Did this Change?,” disclosed more prominently than the other disclosures under § 1026.38(i)(5) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .

      NOTE: Under § 1026.37(h)(1)(iv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , for all transactions other than a purchase transaction as defined in § 1026.37(a)(9)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , the amount required to be disclosed is $0. In a purchase transaction in which no deposit is paid in connection with the transaction, the amount to be disclosed is $0. (Comment 1026.38(i)(5)-1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      1. If the amounts are different, unless due to rounding, a statement of that fact, along with a statement that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) increased or decreased this payment, as applicable, and that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) should see the details disclosed under § 1026.38(j)(2)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , Section L in the Summaries of Transactions table; or,
      2. If the amount disclosed under § 1026.38(i)(5)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , amount in the Final column, is equal to the amount disclosed under § 1026.38(i)(5)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (amount copied over from the Loan Estimate), a statement of that fact. (§ 1026.38(i)(5)(iii)(B)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    6. Funds for Borrower. Under the subheading “Loan Estimate,” the amount disclosed on the Calculating Cash to Close table on the most recent Loan Estimate under § 1026.37(h)(1)(v) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , labeled “Funds for Borrower”. (§§ 1026.38(i)(6)(i)-(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) Under the subheading “Final,” the “Funds for Borrower,” labeled using that term, as determined in accordance with (§ 1026.38(i)(6)(iv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) Under the subheading “Did this Change?,” disclosed more prominently than the other disclosures under § 1026.38(i)(6) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) : Changes between the “Loan Estimate” and “Final” column amounts are noted in the “Did this Change?” column in accordance with the requirements of § 1026.38(i)(6)(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)

      NOTE: The “Final” amount of “Funds for Borrower” to be disclosed under § 1026.38(i)(6)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) is calculated pursuant to § 1026.38(i)(6)(iv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) by subtracting the sum of the loan amount disclosed under § 1026.38(b) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and any amount of existing loans assumed or taken subject to that is disclosed under § 1026.38(j)(2)(iv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (excluding any closing costs financed disclosed under § 1026.38(i)(3)(ii (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )) from the total amount of all existing debt being satisfied in the transaction. The “Final” amount is disclosed either as a negative number or as $0, depending on the result of the calculation, and is an amount to be disbursed to the consumer or a designee of the consumer at consummation, if any. (Comment 1026.38(i)(6)(ii)-1 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

      NOTE: When the down payment and funds from the borrower is determined in accordance with § 1026.38(i)(4)(ii)(A)(1 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ), the amount disclosed as “Funds for Borrower” is $0. (Comment 1026.38(i)(6)(ii)-2 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      1. If the amounts are different, unless due to rounding, a statement of that fact, along with a statement that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) 's available funds from the loan amount have increased or decreased, as applicable; or (§ 1026.38(i)(6)(iii)(A) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      2. If the amount disclosed under § 1026.38(i)(6)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (amount in the Final column) is equal to the amount disclosed under § 1026.38(i)(6)(i) (amount (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) copied over from the Loan Estimate), a statement of that fact. (§ 1026.38(i)(6)(iii)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    7. Seller Credits. Under the subheading “Loan Estimate,” the amount disclosed on the Calculating Cash to Close table on the Loan Estimate under § 1026.37(h)(1)(vi) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , labeled “Seller Credit.” Under the subheading “Final,” the amount disclosed pursuant to § 1026.38(j)(2)(v) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , stated as a negative number. Under the subheading “Did this Change?,” disclosed more prominently than the other disclosures under § 1026.38(i)(7) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) :
      1. If the amounts are different, unless due to rounding, determine whether the credit union discloses a statement that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) should see the details disclosed under either

        1. under § 1026.38(j)(2)(v) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) in the summaries of transactions table, and the seller-paid column of the closing cost details table under §§ 1026.38(f) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) or (g); or

        2. if the difference is attributable only to general seller credits disclosed under either § 1026.38(j)(2)(v) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) or only to specific seller credits disclosed in the seller-paid column of the closing costs detail table under §§ 1026.38(f) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) or (g), under only the applicable provision. (§ 1026.38(i)(7)(iii)(A) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

      2. If the amount disclosed under § 1026.38(i)(7)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (i.e. amount in the Final column) is equal to the amount disclosed under § 1026.38(i)(7)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (i.e. amount copied over from the Loan Estimate), a statement of that fact. (§ 1026.38(i)(7)(iii)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    8. Adjustments and Other Credits. Under the subheading “Loan Estimate,” the amount disclosed on the Calculating Cash to Close table on the most recent Loan Estimate under § 1026.37(h)(1)(vii (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ), compared to the amount listed pursuant to §§ 1026.38(j)(1)(v)-(x) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (to the extent these amounts were not included in the calculation required by §§ 1026.38(i)(4) or (6) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ), and § 1026.38(j)(1)(vi). (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (See exam procedures below on Itemizations of Amounts Due From Borrower) reduced by the total of the amounts disclosed under §§ 1026.38(j)(2)(vi)-(xi) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (See exam procedures below on Itemization Of Amounts Already Paid By Or On Behalf Of Borrower). (§§ 1026.38(i)(8)(i)-(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

      NOTE: If the calculation yields a negative number, the amount is disclosed as a negative number. (Comment 1026.38(i)(8)(ii)-1 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      1. If the amounts are different, unless due to rounding, statement of that fact, along with a statement that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) should see the details disclosed under §§ 1026.38(j)(l)(v) through (x) and (j)(2)(vi) through (xi) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (Sections K and L in the Summaries of Transactions table); or (§ 1026.38(i)(8)(iii)(A) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      2. If the amount disclosed under § 1026.38(i)(8)(ii (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) (i.e. amount in the Final column) is equal to the amount disclosed under § 1026.38(i)(8)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (i.e. amount copied over from the most recent Loan Estimate), a statement of that fact. (§ 1026.38(i)(8)(iii)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    9. Cash to Close. Under the subheading “Loan Estimate,” the amount disclosed on the Calculating Cash to Close table on the most recent Loan Estimate under § 1026.37(h)(1)(viii), (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) compared to the “Final” amount listed pursuant to §§ 1026.38(i)(1) through (i)(8) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , and each disclosed more prominently than the other disclosures in this section. (§§ 1026.38(i)(9)(i)-(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  12. Alternative Cash to Close Table for Transactions without a Seller or for Simultaneous Subordinate Financing (Page 3 of the Closing Disclosure). Determine whether the credit union properly uses the optional Alternative Cash to Close table. (§ 1026.38(e)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , and whether the table is disclosed under the heading “Calculating Cash to Close,” together with the statement “Use this table to see what has changed from your Loan Estimate.” Determine whether the table includes:

    Note: This table may be used only in a transactions without a seller or for simultaneous subordinate financing. In a purchase transaction, the alternative disclosure may be used for the simultaneous subordinate financing Closing Disclosure only if the first-lien Closing Disclosure records the entirety of the seller’s transaction. The use of this alternative calculating cash to close table for transaction without a seller or for simultaneous subordinate transactions is required if the Loan Estimate provided to the consumer disclosed the optional alternative table under § 1026.38(d)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (Comments 1026.38(e)-1,(j)-3,(k)(2)(vii)-1, 38(t)(5)(vii)(B)-1 and -2 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    1. Loan Amount. Labeled “Loan Amount”. Under the subheading “Loan Estimate,” the loan amount disclosed on the most recent Loan Estimate under § 1026.37(b)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . Under the subheading “Final,” the loan amount disclosed under § 1026.38(b) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , disclosed more prominently than other disclosures in this section, under the subheading, “Did this change?”
      1. If the amounts are different (unless due to rounding), a statement of that fact along with a statement of whether this amount increased or decreased.
      2. If there is no change, a statement of that fact. (§§ 1026.38(e)(1)(i) – (iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    2. Total Closing Costs. Labeled “Total Closing Costs”. Under the subheading “Loan Estimate,” the amount disclosed on the most recent Loan Estimate under § 1026.38(h)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . Under the subheading “Final, ”the final total closing costs disclosed under § 1026.38(h)(1 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ), disclosed as a negative number if the amount disclosed under § 1026.38(h)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) is a positive number and disclosed as a positive number if the amount disclosed under § 1026.38(h)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) is a negative number and disclosed more prominently than other disclosures, with the question: “Did this change?” If there is no change, a statement of that fact. If the amounts are different (unless due to rounding):
      1. A statement of that fact (§ 1026.38(e)(2)(iii)(A)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) );
      2. If there is a change because of differences in itemized charges that are included in either or both subtotals, a statement that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) should look at the total loan costs and total other costs subtotals disclosed below, together with references to those disclosures; and (§ 1026.38(e)(2)(iii)(A)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      3. If the increase exceeds the legal limits for increases in closing costs under § 1026.19(e)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ; a statement of that fact; the dollar amount of the excess and, if any refund is provided, a reference to the disclosure required for including the refund in a lender credit under § 1026.38(h)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , or if applicable, a statement directing the consumer to the principal reduction disclosure under § 1026.38(t)(5)(vii)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (§ 1026.38(e)(2)(iii)(A)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      4. If there is no change and the amount disclosed under § 1026.38(e)(2)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) is equal to the amount disclosed under § 1026.38(e)(2)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , a statement of that fact.
    3. Closing Costs Paid before Closing. Labeled “Closing Costs Paid Before Closing:” Under the subheading “Loan Estimate,” the amount of $0; and under the subheading “Final,” any amount designated as borrower-paid before closing under § 1026.38(h)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , disclosed as a positive number. Disclosed more prominently than other disclosures, under the subheading “Did This Change?” (§ 1026.38(e)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      1. If the amount disclosed under § 1026.38(e)(3)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) is different than the amount disclosed under § 1026.38(e)(3)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , unless due to rounding, a statement of that fact along with a statement that the consumer paid such amounts prior to consummation; or (§ 1026.38(e)(3)(iii)(A) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      2. If the amount disclosed under § 1026.38(e)(3)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) is equal to the amount disclosed under § 1026.38(e)(3)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , a statement of that fact. (§ 1026.38(e)(3)(iii)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    4. Total Payoffs and Payments. Labeled “Total Payoffs and Payments.” Under the subheading “Loan Estimate,” the amount disclosed on the most recent Loan Estimate under § 1026.37(h)(2)(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . Under the subheading “Final,” the total amount of payoffs and payments made to third parties not otherwise disclosed under § 1026.38(t)(5)(vii)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , to the extent known, disclosed as a negative number if the total amount disclosed under § 1026.38(t)(5)(vii)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) is a positive number and disclosed as a positive number if the total amount disclosed under § 1026.38(t)(5)(vii)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) is a negative number. Determine whether these disclosures are disclosed more prominently than other disclosures under this paragraph under the subheading “Did This Change?” (§ 1026.38(e)(4) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      1. If the amount disclosed under § 1026.38(e)(4)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) is different than the amount disclosed under § 1026.38(e)(4)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (unless the difference is due to rounding), a statement of that fact, along with a reference to the “Payoffs and Payments” table that may be added pursuant to § 1026.38(t)(5)(viii)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) (§ 1026.38(e)(4) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ); or
      2. If the amount disclosed under § 1026.38(e)(4)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) is equal to the amount disclosed under § 1026.38(e)(4)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , a statement of that fact. (§ 1026.38(e)(4)(iii)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    5. Cash to or from the consumer. Labeled “Cash to Close”: Under the subheading “Loan Estimate”, a statement of whether the estimated amount is due from or to the consumer, as disclosed under § 1026.37(h)(2)(iv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) on the most recent Loan Estimate; and a Under the subheading “Final.” a disclosure of the final amount due from or to the consumer disclosed as a positive number. (§§ 1026.38(e)(5)(i) – (ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    6. Closing Costs Financed (Paid from your Loan Amount). Labeled “Closing Costs Financed (Paid from your Loan Amount).” Disclosed as the sum of the amounts disclosed under §§ 1026.38(e)(1)(ii) and (e)(4)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (the amounts in the Final Column of the Loan Amount and Total Payoffs and Payments). However, the amount is disclosed only to the extent that the sum is greater than zero and less than or equal to the sum disclosed under § 1026.38(h)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (Total Closing Costs) minus the sum disclosed under § 1026.38(h)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) designated as borrower-paid before closing. (§ 1026.38(e)(6) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  13. Borrower’s Transaction: Itemization of Amounts Due From Borrower at Closing (Page 3 of the Closing Disclosure). Determine whether the credit union accurately discloses the total amount due from the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) at closing, calculated as the sum of items required to be disclosed by §§ 1026.38(j)(1)(ii) -(x) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (the items described in this procedure), excluding items paid from funds other than closing funds (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) as described in § 1026.38(j)(4)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . Determine whether the credit union completes the summary of the borrower’s transaction as follows: (§ 1026.38(j)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    1. Sale Price of Property. The amount of the contract sales price of the property being sold in a purchase real estate transaction, excluding the price of any tangible personal property if the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and seller have agreed to a separate price for such items (personal property does not include manufactured homes). (§ 1026.38(j)(1)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    2. Sale Price of Any Personal Property Included in Sale. The amount of the sales price of any tangible personal property excluded from the contract sales price pursuant to § 1026.38(j)(1)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (§ 1026.38(j)(1)(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    3. Closing Costs Paid at Closing. The total amount of closing costs disclosed that are designated borrower-paid at closing, calculated pursuant to § 1026.38(h)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (see procedure above regarding Closing Costs Subtotals). (§ 1026.38(j)(1)(iv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    4. A description and the amount of any additional items that the seller has paid prior to the real estate closing, but reimbursed by the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) at the real estate closing, and a description and the amount of any other items owed by the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) at the real estate closing not otherwise disclosed pursuant to §§ 1026.38(f), (g), or (j) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (§ 1026.38(j)(1)(v) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    5. The description “Adjustments for Items Paid by Seller in Advance”. (§ 1026.38(j)(1)(vi) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    6. City/Town Taxes. The prorated amount of any prepaid taxes due from the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) to reimburse the seller at the real estate closing, and the time period corresponding to that amount. (§ 1026.38(j)(1)(vii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    7. County Taxes. The prorated amount of any prepaid taxes due from the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) to reimburse the seller at the real estate closing, and the time period corresponding to that amount. (§ 1026.38(j)(1)(viii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    8. Assessments. The prorated amount of any prepaid assessments due from the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) to reimburse the seller at the real estate closing, and the time period corresponding to that amount. (§ 1026.38(j)(1)(ix) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    9. A description and the amount of any additional items paid by the seller prior to the real estate closing that are due from the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) at the real estate closing. (§ 1026.38(j)(1)(x) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  14. Borrower’s Transaction: Itemization of Amounts Paid Already by or on behalf of Borrower at Closing (Page 3 of the Closing Disclosure). Determine whether the credit union accurately discloses the sum of the amounts disclosed in §§ 1026.38(j)(2)(ii)-(xi) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (the items described in this procedure), excluding items paid from funds other than closing funds (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) as described in § 1026.38(j)(4)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . Determine whether the credit union accurately completes the summary of borrower’s transaction as follows: (§ 1026.38(j)(2)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    1. Deposit. Any amount that is paid to the seller or held in trust or escrow by an attorney or other party under the terms of the agreement for the sale of the property. (§ 1026.38(j)(2)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    2. Loan Amount. The amount of the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) 's new loan amount or first user loan as disclosed pursuant to § 1026.38(b) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (§ 1026.38(j)(2)(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    3. Existing Loan(s) Assumed or Taken Subject To. The amount of any existing loans that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) is assuming, or any loans subject to which the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) is taking title to the property. (§ 1026.38(j)(2)(iv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    4. Seller Credit. The total amount of money that the seller will provide at the real estate closing as a lump sum not otherwise itemized to pay for loan costs as determined by § 1026.38(f) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and other costs as determined by § 1026.38(g) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and any other obligations of the seller to be paid directly to the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (§ 1026.38(j)(2)(v)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    5. Other Credits. A description and amount of other items paid by or on behalf of the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and not otherwise disclosed pursuant to §§ 1026.38(f)-(h), (j)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , labeled “Other Credits”; and amounts and descriptions of any additional amounts owed the consumer but payable to the seller before the real estate closing, under the heading “Adjustments.” (§ 1026.38(j)(2)(vi) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

      NOTE: Any financing arrangements or other new loans not otherwise disclosed under § 1026.38(j)(2)(iii) or (iv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) must be disclosed under § 1026.38(j)(2)(vi) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) on the first-lien Closing Disclosure. The principal amount of subordinate financing is disclosed on the summaries of transactions table for the borrower’s transaction either on line 04 under the subheading “L. Paid Already by or on Behalf of Borrower at Closing,” or under the subheading “Other Credits.” (Comment 1026.38(j)(2)(vi)-2 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    6. The description “Adjustments for Items Unpaid by Seller”. (§ 1026.38(j)(2)(vii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    7. City/Town Taxes. The prorated amount of any unpaid taxes due from the seller to reimburse the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) at the real estate closing, and the time period corresponding to that amount. (§ 1026.38(j)(2)(viii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    8. County Taxes. The prorated amount of any unpaid taxes due from the seller to reimburse the consumer at the real estate closing, and the time period corresponding to that amount. (§ 1026.38(j)(2)(ix) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    9. Assessments. The prorated amount of any unpaid assessments due from the seller to reimburse the consumer at the real estate closing, and the time period corresponding that amount. (§ 1026.38(j)(2)(x) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    10. A description and the amount of any additional items which have not yet been paid and which the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) is expected to pay after the real estate closing, but which are attributable in part to a period of time prior to the real estate closing. (§ 1026.38(j)(2)(xi) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  15. Borrower’s Transaction: Calculation of Borrower’s Transaction (Page 3 of the Closing Disclosure). Determine whether the credit union accurately discloses the total amount due from, and already paid by, the consumer at closing by the following calculation: (§ 1026.38(j)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    1. Total Due from Borrower at Closing. The amount disclosed in the Closing Disclosure, on the line captioned “Due from Borrower at Closing”. (§ 1026.38(j)(3)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    2. Total Paid Already by or on Behalf of Borrower at Closing. The amount disclosed in the Closing Disclosure, on the line captioned “Paid Already by or on Behalf of Borrower at Closing,” if any, disclosed as a negative number. (§ 1026.38(j)(3)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    3. Cash to Close. A statement that the disclosed amount is due from or to the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , and the amount due from or to the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) at the real estate closing, calculated by the sum of the amounts disclosed as the “Total Due from Borrower at Closing” and “Total Paid Already by or on Behalf of Borrower at Closing”, labeled “Cash to Close”. (§ 1026.38(j)(3)(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  16. Borrower’s Transaction: Paid Outside of Closing (Page 3 of the Closing Disclosure). Determine whether the credit union discloses other costs that are not paid from closing funds, but would otherwise be disclosed; describe the funds as “Paid Outside of Closing” or the abbreviation “P.O.C.,” and include the name of the party making the payment. (§ 1026.38(j)(4)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

    NOTE: For purposes of §1026.38(j) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , “closing funds” means funds collected and disbursed at real estate closing. (§ 1026.38(j)(4)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  17. Seller’s Transaction: Itemization of Amounts Due to Seller at Closing (Page 3 of the Closing Disclosure). Determine whether the credit union accurately discloses the total amount due to the seller at the real estate closing, calculated as the sum of items required to be disclosed pursuant to §§ §(the items in this procedure), excluding items paid from funds other than closing funds as described in § 1026.38(k)(4)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . Determine whether the credit union accurately completes the summary of seller’s transaction as follows: (§ 1026.38)(k)(1)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    1. Sale Price of Property. The amount of the contract sales price of the property being sold, excluding the price of any tangible personal property if the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and seller have agreed to a separate price for such items. (§ 1026.38(k)(1)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    2. Sale Price of Any Personal Property Included in Sale. The amount of the sales price of any tangible personal property excluded from the contract sales price pursuant to section 1026.38(k)(1)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (§ 1026.38(k)(1)(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    3. A description and the amount of other items paid to the seller by the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) pursuant to the contract of sale or other agreement, such as charges that were not disclosed pursuant to § 1026.37 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) on the Loan Estimate or items paid by the seller prior to the real estate closing but reimbursed by the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) at the real estate closing. (§ 1026.38(k)(1)(iv)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    4. The description “Adjustments for Items Paid by Seller in Advance”. (§ 1026.38(k)(1)(v) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    5. City/Town Taxes. The prorated amount of any prepaid taxes due from the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) to reimburse the seller at the real estate closing, and the time period corresponding to that amount. (§ 1026.38(k)(1)(vi) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    6. County Taxes. The prorated amount of any prepaid taxes due from the consumer to reimburse the seller at the real estate closing, and the time period corresponding to that amount. (§ 1026.38(k)(1)(vii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    7. Assessments. The prorated amount of any unpaid assessments due from the consumer to reimburse the seller at the real estate closing, and the time period corresponding that amount. (§ 1026.38(k)(1)(viii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    8. A description and the amount of additional items paid by the seller prior to the real estate closing that are reimbursed by the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) at the real estate closing. (§ 1026.38(k)(1)(ix) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  18. Seller’s Transaction: Itemization of Amounts Due from Seller at Closing (Page 3 of the Closing Disclosure). Determine whether the credit union accurately discloses the sum of the amounts disclosed in §§ 1026.38(k)(2)(ii)-(xiii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (the items in this procedure), excluding items paid from funds other than closing funds described in section 1026.38(k)(4)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . Determine whether the credit union accurately completes the summary of the seller’s transaction as follows: (§ 1026.38(k)(2)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    1. Excess Deposit. The amount of any excess deposit disbursed prior to closing. (§ 1026.38(k)(2)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    2. Closing Costs Paid at Closing. The amount of closing costs designated seller-paid at closing and disclosed pursuant to § 1026.38(h)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (§ 1026.38(k)(2)(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    3. Existing Loan(s) Assumed or Taken Subject To. The amount of any existing loans assumed or taken subject to by the consumer. (§ 1026.38(k)(2)(iv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    4. Payoff of First Mortgage Loan. The amount of a first lien loan secured by the property being sold that will be paid off at closing. (§ 1026.38(k)(2)(v) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    5. Payoff of Second Mortgage Loan. The amount of any loan secured by a second lien on the property that will be paid off as part of the real estate closing. (§ 1026.38(k)(2)(vi) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    6. Seller Credit. The total amount of seller funds to be provided at closing as a lump sum that has not otherwise been itemized to pay for loan costs as determined by § 1026.38(f) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and other costs as determined by § 1026.38(g) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and any other obligations of the seller to be paid directly to the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (§ 1026.38(k)(2)(vii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    7. A description and amount of all other items required to be paid by the seller at closing, including any lien-related payoffs, fees, or obligations. (§ 1026.38(k)(2)(viii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    8. The description “Adjustments for Items Unpaid by Seller”. (§ 1026.38(k)(2)(ix) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    9. City/Town Taxes. The prorated amount of unpaid taxes due from the seller to reimburse the consumer at the real estate closing, and the time period corresponding to that amount. (§ 1026.38(k)(2)(x) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    10. County Taxes. The prorated amount of any unpaid taxes due from the seller to the consumer at the real estate closing, and the time period corresponding to that amount. (§ 1026.38(k)(2)(xi) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    11. Assessments. The prorated amount of any unpaid assessments due from the seller to reimburse the consumer at the real estate closing, and the time period corresponding to that amount. (§ 1026.38(k)(2)(xii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    12. A description and the amount of any additional items which have not yet been paid and which the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) is expected to pay after the real estate closing, but which are attributable in part to a period of time prior to the real estate closing. (§ 1026.38(k)(2)(xiii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  19. Seller’s Transaction: Calculation of Seller’s Transaction (Page 3 of the Closing Disclosure). Determine whether the credit union accurately discloses the total amount due to and from the seller at closing by the following calculation: (§ 1026.38(k)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    1. Total Due to Seller Closing. The amount disclosed in the Closing Disclosure, on the line captioned “Due from Seller at Closing”. (§ 1026.38(k)(3)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    2. Total Due from Seller at Closing. The amount disclosed in the Closing Disclosure on the line captioned “Due from Seller at Closing,” disclosed as a negative number. (§ 1026.38(k)(3)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    3. Cash. A statement that the disclosed amount is due from or to the seller and the amount due, calculated by the sum of the amounts disclosed as the “Total Due to Seller at Closing” and “Total Due from Seller at Closing”. (§ 1026.38(k)(3)(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  20. Seller’s Transaction: Items Paid Outside of Closing Funds (Page 3 of the Closing Disclosure). Determine whether the credit union discloses other costs that are not paid out of closing funds, but would otherwise be disclosed in the Summaries of Transactions: Seller’s Transaction table; describing the funds as “Paid Outside of Closing” or the abbreviation “P.O.C.,” and including the name of the party making the payment. (§ 1026.38(k)(4)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

    NOTE: For purposes of § 1026.38(k) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , “closing funds” means funds collected and disbursed at real estate closing. (§ 1026.38(k)(4)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

    NOTE: § 1026.38(k) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) does not apply in a transaction where there is no seller, such as a refinance transaction or a transaction with a construction purpose as defined in § 1026.37(a)(9)(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , or in a simultaneous subordinate financing purchase transaction if the first-lien Closing Disclosure records the entirety of the seller’s transaction. (Comment 1026.38(k)-1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) If § 1026.38(k) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) applies to a simultaneous subordinate financing transaction, § 1026.38(k) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) is completed based only on the terms and conditions of the simultaneous subordinate financing transaction and no contract sales price is disclosed under § 1026.38(k)(1)(ii (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) on the Closing Disclosure for the simultaneous subordinate financing. (Comment 1026.38(k)(1)-1 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  21. Payoff and Payments Table for Transactions without a Seller or for Simultaneous Subordinate Financing (Page 3 of the Closing Disclosure). Determine whether a credit union, using an optional modified Closing Disclosure (as illustrated by form H-25(J) in Appendix H (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ), has provided alternative tables for Cash to Close, pursuant to § 1026.38(d)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , and for Calculating Cash to Close pursuant to § 1026.38(e) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and that the credit union itemizes the amounts of payments made at consummation to other parties from the credit extended to the consumer or funds provided by the consumer in connection with the transaction, including designees of the consumer; the payees and a description of the purpose of such disbursements under the subheading “To;” and the total amount of such payments, labeled “Total Payoffs and Payments.”. (§ 1026.38(t)(5)(vii)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

    NOTE: Funds provided by designees of the consumer may include gift funds, grants, proceeds from loans that satisfy the partial exemption criteria in § 1026.3(h) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , and, on the Closing Disclosure for a simultaneous subordinate financing transaction, contributions from a seller for costs associated with the subordinate financing. (Comment 1026.38(t)(5)(vii)(B)-1 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  22. Disclosure of Subordinate Financing for a Transaction without a Seller, or for Simultaneous Subordinate Financing. (Page 3 of the Closing Disclosure)Determine whether the credit union permissibly modified form H-25 of Appendix H (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , pursuant to the requirements of § 1026.38(t)(5)(vii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .
    1. The information required by §§ 1026.38(a)(4)(ii), (f), (g), and (h) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) with respect to loan costs, other costs, and closing costs paid by the seller, may be deleted. (§ 1026.38(t)(5)(vii)(A) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    2. A table under the master heading “Closing Cost Details” required by § 1026.38(f) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) may be added with the heading “Payoffs and Payments” that itemizes the amounts of payments made at closing to other parties from the credit extended to the consumer or funds provided by the consumer in connection with the transaction, including designees of the consumer; the payees and a description of the purpose of such disbursements under the subheading “To”: and the total amount of such payments labeled “Total Payoffs and Payments.” (§ 1026.38(t)(5)(vii)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    3. The tables required to be disclosed by §§ 1026.38(j) and (k) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) may be deleted. (§ 1026.38(t)(5)(vii)(C) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      NOTE: The Commentary to § 1026.38(t)(5)(vii)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) provides guidance as follows:
  23. Additional Information About This Loan: Loan Disclosures (Page 4 of the Closing Disclosure). Determine whether the credit union accurately provides the required disclosures: (§ 1026.38(l) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    1. Assumption. Whether the loan obligations may be assumed by a subsequent purchaser. (§ 1026.38(l)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) );
    2. Demand Feature. Whether the legal obligation includes a demand feature, and, if it does, a reference to the note or other loan contract for details. (§ 1026.38(l)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    3. Late Payment. The dollar amount or percentage charge of any fee designated as a late payment (information required on the Loan Estimate by § 1026.37(m)(4) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) and the number of days after which such a charge will be triggered. (§ 1026.38(l)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    4. Negative Amortization (Increase in Loan Amount). Whether the regular period payments may cause the principal balance to increase.
      1. If the regular periodic payments do not cover all of the interest due, the credit union provides a statement that the borrower’s principal balance will increase, such balance will likely become larger than the original loan amount, and increases in such balance lower the consumer’s equity in the property.
      2. If the consumer may make regular periodic payments that do not cover all of the interest due, the credit union provides a statement that, if the consumer chooses a monthly payment option that does not cover all of the interest due, the principal balance may become larger than the original loan amount and the increases in the principal balance lower the consumer’s equity in the property. (§§ 1026.38(l)(4)(i)-(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    5. Partial Payments. Whether the credit union that accepts less than the full amount due has provided a statement that the “lender,” (using that label) may accept partial payments and apply such payments to the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) 's loan.
      1. If periodic payments that are less than the full amount due are accepted but not applied to a consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) 's loan until the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) pays the remainder of the full amount due, a statement that the lender, may hold partial payments in a separate account until the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) pays the remainder of the payment and then apply the full periodic payment to the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) 's loan.
      2. If periodic payments that are less than the full amount due are not accepted, the lender, does not accept any partial payments; and
      3. A statement that, if the loan is sold, the new lender, may have a different policy. (§§ 1026.38(l)(5)(i)-(iv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    6. Security Interest (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . Whether the credit union states that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) is granting a security interest (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) in the property securing the transaction, and that the borrower may lose the property if required payments are not made or otherwise fails to satisfy the requirements of the legal obligation. Determine that the credit union has included the property address and zip code. (§ 1026.38(l)(6) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    7. Escrow Account. Under the subheading “Escrow Account,” (§ 1026.38(l)(7) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) whether the credit union provides:
      1. Under the reference “For now”: A statement that an escrow account may also be called an impound or trust account, whether the credit union has established or will establish(at or before consummation) an escrow account in connection with the transaction and the following information required under §§ 1026.38(l)(7)(i)(A)-(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) :
        1. A statement that the credit (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) union may be liable for penalties and interest if it fails to make a payment for any cost for which the escrow account is established;
        2. A statement that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) would have to pay such costs directly in the absence of the escrow account and
        3. A table, entitled “Escrow,” that contains, if an escrow account is or will be established, an itemization of the following:
          1. The total amount that the consumer will be required to pay into the account over the first year after consummation, labeled “Escrowed Property Costs over Year 1,” together with a descriptive name of each charge to be paid (in whole or in part) from the escrow account, calculated as the amount disclosed under § 1026.38 (l)(7)(i)(A)(4) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) multiplied by the number of periodic payments scheduled to be made to the escrow account during the first year after consummation (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (§ 1026.38(l)(7)(i)(A)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
          2. The estimated amount that the consumer is likely to pay during the first year after consummation (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , for the mortgage-related obligations described in § 1026.43(b)(8) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , that are known to the credit union and that will not be paid using escrow account funds, labeled “Non-Escrowed Property Costs over Year 1,” together with a descriptive name of each such charge and a statement that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) may have to pay other costs that are not listed. (§ 1026.38(l)(7)(i)(A)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

            NOTE: The credit union discloses this amount only if an escrow account will be established. The disclosure is based on payments during the first year after consummation. If the credit union elects to make disclosures required by § 1026.38(l)(7)(i)(A)(1) and (4) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) based on amounts derived from the escrow account analysis required under Regulation X, § 1024.17 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , then the credit union may make the disclosures required by § 1026.38(l)(7)(i)(A)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) based on a 12-month period beginning with the borrower’s initial payment date (rather than beginning with consummation). (Comment 1026.38(l)(7)(i)(A)(2)-2 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ; Comment 1026.38(l)(7)(i)(A)(5)-1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
          3. The total amount disclosed and a reference to the disclosure made on the Closing Disclosure under the heading “Other Costs, Initial Escrow Payment at Closing,” pursuant to § 1026.38(g)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , and a statement that the payment is a cushion for the escrow account, labeled “Initial Escrow Payment”. (§ 1026.38(l)(7)(i)(A)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
          4. The amount the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) will be required to pay into an escrow account with each periodic payment during the first year after consummation (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , labeled “Monthly Escrow Payment”. (§ 1026.38(l)(7)(i)(A)(4) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      2. No Escrow. If an escrow account will not be established for the consumer, determine whether there is:
        1. A statement that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) will not have an escrow account;
        2. The reason why an escrow account will not be established;
        3. A statement that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) must pay all property costs, such as taxes and homeowner's insurance, directly;
        4. A statement that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) may contact the credit (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) union to inquire about the availability of an escrow account; and
        5. A table, titled “No Escrow,” that itemizes:
          1. The estimated total amount the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) will pay directly for the mortgage-related obligations described in § 1026.43(b)(8) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) during the first year after consummation (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) that are known to the credit union (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and a statement that, without an escrow account, the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) must pay the identified costs, possibly in one or two large payments, labeled “Property Costs over Year 1”; and
          2. The amount of any fee the credit (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) union imposes on the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) for not establishing an escrow account in connection with the transaction, labeled “Escrow Waiver Fee”. (§ 1026.38(l)(7)(i)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

            NOTE: § 1026.38(l)(7)(i)(B)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) requires disclosure based on payments during the first year after consummation. A credit union may comply with this requirement by basing the disclosure on a 12-month period beginning with the borrower’s initial payment date or on a 12-month period beginning with consummation. (Comment 1026.38(l)(7)(i)(B)(1)-2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    8. Under the reference “In the future” determine whether the credit union has disclosed under the reference “In the future”: (§ 1026.38(l)(7)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      1. A statement that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) 's property costs may change and that, as a result, the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) 's escrow payment may change; (§ 1026.38(l)(7)(ii)(A) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      2. A statement that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) may be able to cancel any escrow account that has been established, but that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) is responsible for directly paying all property costs in the absence of an escrow account; and (§ 1026.38(l)(7)(ii)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      3. A description of the consequences if the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) fails to pay property costs, including the actions that a State (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) or local government may take if property taxes are not paid and the actions the credit (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) union may take if the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) does not pay some or all property costs, such as adding amounts to the loan balance, adding an escrow account to the loan, or purchasing a property insurance policy on the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) 's behalf that may be more expensive and provide fewer benefits than what the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) could obtain directly. (§ 1026.38(l)(7)(ii)(C) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  24. Additional Information About This Loan: Adjustable Payment (AP) Table (Page 4 of the Closing Disclosure). Determine whether the credit union provides the AP disclosure required for the Loan Estimate under § 1026.37(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (§ 1026.38(m)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .
  25. Additional Information About This Loan: Adjustable Interest Rate (AIR) Table (Page 4 of the Closing Disclosure). Determine whether the credit union provides the AIR disclosures required for the Loan Estimate by § 1026.37(j) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (§ 1026.38(n) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ).
  26. Loan Calculations (Page 5 of the Closing Disclosure). Determine whether the credit union provides a separate table and accurately discloses the following information: (§ 1026.38(o) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    1. Total of Payments. Expressed as a dollar amount, and a statement that the disclosure is the total the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) will have paid after making all payments of principal, interest, mortgage insurance, and loan costs, as scheduled. The disclosed total of payments for each transaction shall be treated as accurate if the amount disclosed as the total of payments:
      1. Is understated by no more than $100, or
      2. Is greater than the amount required to be disclosed. (§ 1026.38(o)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

        NOTE: For transactions subject to §§ 1026.19(e) and (f) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , special tolerances apply to the disclosure of the total of payments for purposes of the right of rescission and foreclosure. (§§ 1026.23(g)(1)(ii), (g)(2)(ii) and (h)(2)(ii)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    2. Finance Charge. Expressed as a dollar amount, and the statement “The dollar amount the loan will cost you.” The finance charge and other disclosures affected by the disclosed finance charge (including the amount financed and the annual percentage rate) is accurately calculated if the amount disclosed as the finance charge: (§ 1026.38(o)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      1. Is understated by no more than $100; or
      2. Is greater than the amount required to be disclosed.
    3. Amount Financed. Expressed as a dollar amount, and the following statement: “The loan amount available after paying your upfront finance charge”; (§ 1026.38(o)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    4. Annual Percentage Rate (APR). Expressed as a percentage, with the following statement: “Your costs over the loan term expressed as a rate. This is not your interest rate”; (§ 1026.38(o)(4) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    5. Total Interest Percentage (TIP). Expressed as a percentage; with the following statement: “The total amount of interest that you will pay over the loan term as a percentage of your loan amount”. (§ 1026.38(o)(5) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  27. Other Disclosures (Page 5 of the Closing Disclosure). Determine whether the credit union accurately provides the following disclosures:
    1. Appraisal. For transactions subject to 15 U.S.C. 1639h (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) or 1691(e) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , as implemented in this part or Regulation B, 12 CFR 1002 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , respectively, under the subheading “Appraisal”: (§ 1026.38(p)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      1. If there was an appraisal of the property in connection with the loan, the credit union is required to provide the consumer with a copy at no additional cost to the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) at least three days prior to consummation (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ; and (§ 1026.38(p)(1)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      2. If the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) has not yet received a copy of the appraisal, the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) should contact the credit (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) union using the information disclosed in the Closing Disclosure. (§ 1026.38(p)(1)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    2. Contract Details. A statement that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) should refer to the appropriate loan document and security instrument for information about nonpayment, what constitutes a default under the legal obligation, circumstances under which the credit (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) union may accelerate the maturity of the obligation, and prepayment rebates and penalties. (§ 1026.38(p)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    3. Liability after Foreclosure. A brief statement of whether, and the conditions under which, the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) may remain responsible for any deficiency after foreclosure under applicable State (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) law, a brief statement that certain protections may be lost if the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) refinances or incurs additional debt on the property, and a statement that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) should consult an attorney for additional information. (§ 1026.38(p)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    4. Refinance. The statement required on the Loan Estimate by § 1026.37(m)(5) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) that “Refinancing this loan will depend on your future financial situation, the property value, and market conditions. You may not be able to refinance this loan.” (§ 1026.38(p)(4) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    5. Tax Deductions. A statement that, if the extension of credit (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) exceeds the fair market value of the property, the interest on the portion of the credit (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) extension that is greater than the fair market value of the property is not tax deductible for Federal income tax purposes and a statement that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) should consult a tax adviser for further information. (§ 1026.38(p)(5) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    6. Loan Acceptance. If the credit (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) union does not provide a line for the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) 's signature, the credit union must include with the other disclosures the same statement required in the Loan Estimate (pursuant to § 1026.37(n)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) that “You do not have to accept this loan because you have received this form or signed a loan application.” (§ 1026.38(s)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  28. Questions Notice (Page 5 of the Closing Disclosure). Determine whether the credit union provides a separate questions notice. The credit union must include a prominent question mark, a statement directing the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) to use the contact information for questions, a reference to CFPB’s website for more information and to submit a complaint, and a link to www.consumerfinance.gov/mortgage-closing. (§§ 1026.38(q)(1)-(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  29. Contact Information (Page 5 of the Closing Disclosure). Determine whether the credit union provides the required contact information for each lender, (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) mortgage broker, consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) 's real estate broker, seller's real estate broker, and settlement agent participating in the transaction; the name of the person (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , address, NMLSR ID number, or if none, State and “License ID”; the name of the natural person (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) who is the primary contact for the consumer at each entity, identified as “Contact”, along with that person’s Contact NMLS ID or Contact License ID, email address, and phone number. (§§ 1026.38(r)(1)-(7) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  30. Confirm Receipt (Page 5 of the Closing Disclosure). Determine whether, the credit union choses to provide a signature statement, and the credit union discloses above the signature line the statement: “By signing, you are only confirming that you have received this form. You do not have to accept this loan because you have signed or received this form.” (§ 1026.38(s)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

    NOTE: If the credit union (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) does not provide a line for the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) 's signature, the credit union (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) must include the following statement, labeled “Loan Acceptance:” “You do not have to accept this loan because you have received this form or signed a loan application.”(§ 1026.38(s)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  31. Form of Disclosures. Determine whether the credit union follows the format and content of form H-25, set forth in Appendix H (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ; (§§ 1026.38(t)(1) and (3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ), changes formatting only if there is an exception, including acceptable modifications in Appendix H (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) for transactions without a seller (§ 1026.38(t)(5) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ); and complies with the following rounding rules for dollar amounts and percentages:
    1. Rounding - nearest dollar. The following dollar amounts are rounded to the nearest whole dollar: (§ 1026.38(t)(4)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      1. The dollar amounts for Loan Terms (required to be disclosed by § 1026.38(b) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) that are required to be rounded by § 1026.37(o)(4)(i)(A) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) when disclosed under §§ 1026.37(b)(6) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and (7) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (i.e., adjustments after consummation and details about prepayment penalty and balloon payments);
      2. The dollar amounts for projected payments or range of payments required by § 1026.38(c) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) that are required to be rounded by § 1026.37(o)(4)(i)(A) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) when disclosed under § 1026.37(c)(1)(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (i.e., minimum and maximum amounts of principal and interest for projected periodic payments or range of payments);
      3. The dollar amounts required to be disclosed by § 1026.38(e (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) (alternative calculating Cash to Close table for transactions without a seller or for simultaneous subordinate financing) and § 1026.38(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (calculating Cash to Close table) under the subheading “Loan Estimate”;
      4. The dollar amounts required to be disclosed by § 1026.38(m) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (adjustable payment table); and
      5. The dollar amounts required to be disclosed by § 1026.38(c) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (projected payments) that are required to be rounded by § 1026.37(o)(4)(i)(C) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) when disclosed under § 1026.37(c)(2)(iv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (i.e., total monthly payment).
    2. Percentages. The percentage amounts required to be disclosed under §§ 1026.38(b), 1026.38(f)(1), 1026.38(n), and 1026.38(o)(4) and (5) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) shall be disclosed by rounding the exact amounts to three decimal places and then dropping any trailing zeros to the right of the decimal point. (§ 1026.38(t)(4)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    3. Loan amount. The dollar amount required to be disclosed by § 1026.38(b) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) as required by § 1026.37(b)(1)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) is disclosed as an unrounded number, except that if the amount is a whole number then the amount disclosed is truncated at the decimal point. (§§ 1026.38(t)(4) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (iii))
    4. Use of Form H-25 not required in certain circumstances. For a transaction that is not a federally related mortgage loan, the credit union is not required to use Form H-25 of Appendix H, but the disclosures must be made with headings, content, and format substantially similar to Form H-25. (§ 1026.38(t)(3)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

      NOTE: For such loans, the use of Form H-25, if properly completed with accurate content, constitutes compliance with the clear and conspicuous and segregation requirement of § 1026.38(t)(1)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (Comment 1026.38(t)(3)-1 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    5. Exceptions. For example, modifications of Form H-25 are permitted to separate consumer and seller information, if modifications comply with the requirements of § 1026.38(t)(5)(v) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .

Construction or Construction-Permanent Loan Disclosures

TILA permits treating: (1) a series of advances under an agreement to extend credit up to a certain amount as one transaction, and (2) the construction and permanent phases of a multiple-advance construction loan that may be permanently financed by the same credit union as either one or more than one transaction. (§ 1026.17(c)(6) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ; Comments 1026.17(c)(6)-1 through -5 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

NOTE: A credit union has the option to use the method provided in Appendix D (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , to calculate the annual percentage rate and other disclosures for construction loans in disclosing construction financing. (Comment 1026.17(c)(6)-2 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) Further, credit unions may use methods in Appendix D (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) to estimate and disclose the terms of multiple-advance construction loans pursuant to § 1026.37 and .38 (Comment 1026 App. D-7 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

The following provisions of TILA and associated commentary apply to (1) construction-only, (2) construction-permanent combined (CP Loan-Combined), and/or (3) construction-permanent separate (CP Loan-Separate) disclosures, or some combination of these loan types, as noted. Determine:

  1. Timing of Loan Estimate. Whether the credit union has delivered or placed in the mail the Loan Estimate not later than the third business day after receiving the consumer’s application and not later than the seventh business day before consummation of the transaction. (§ 1026.19(e)(1)(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

    NOTE: For a CP Loan-Combined, the credit union delivers or places in the mail one combined disclosure within these time frames. (Comment 1026.19(e)(1)(iii)-5 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

    NOTE: For a CP Loan-Separate for which an applicant for both the construction and permanent financing has been received (either as one application or a s a separate application), the credit union delivers or places in the mail the separate Loan Estimates for each phase within these timeframes. (Comment 1026.19(e)(1)(iii)-5 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) If the credit union receives the application at separate times, the credit union must provide the Loan Estimate for each phase no later than the time frames applicable to the date it received the specific phase’s application (i.e., if it received the application for the permanent phase three days after the construction phase, it must deliver or place in the mail the permanent phase disclosure not later than the third day after receiving that application, not the construction phase application). (Comment 1026.19(e)(1)(iii)-5 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

    NOTE: For a Construction-only transaction for which an application has been received and the credit union is separately disclosing the advances, the credit union delivers or places in the mail separate Loan Estimates for each advance no later than three business days after receiving the consumer’s application. (Comment 1026.19(e)(1)(iii)-1 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  2. Allocation of fees and charges when disclosing multiple transaction: Whether fees and charges are allocated in construction-permanent loan or multiple-advance construction-only loan disclosures for purposes of calculating disclosures. (§ 1026.17(c)(6) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

    NOTE: If the credit union has charged separate amounts for finance charges and points and fees, such amounts are allocated to the phase for which they are charged. (Comment 1026.17(c)(6)-5 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    1. CP Loan-Separate. The finance charges and points and fees that would not be imposed but for the construction financing are allocated to the construction phase, and all other finance charges and points and fees are allocated to the permanent financing.
    2. CP Loan-Separate. If a credit union charges a greater origination fee for construction-permanent financing than for construction-only financing, the fee difference is allocated to the permanent phase
    3. CP Loan-Separate. Fees and charges that are not used to compute the finance charge under § 1026.4 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) or points and fees under § 1026.32(b)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) may be allocated between the transactions in any manner the credit union chooses.
  3. Sale Price
    1. Loan Estimate
      1. For transactions that involve a seller, whether the contract sale price of the property is disclosed. (§ 1026.37(a)(7)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      2. For transactions that do not involve a seller, whether the estimated value of the property is disclosed as “Prop. Value.” (§ 1026.37(a)(7)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ).

        NOTE: For transactions that do not involve a seller and transactions that involve a seller where the sale price is not yet known, the credit union discloses the estimated value of the property based on the best information reasonably available to the credit union at the time the disclosure is provided to the consumer. (Comment 1026.37(a)(7)-1 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , § 1026.17(c)(2)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , Comment 1026.17(c)(2)(i)-1 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , and Comment 1026.19(e)A(1)(i)-1)

        NOTE: For transactions involving construction where there is no seller, the credit union has the option to include the estimated value of the improvements to be made on the property. (Comment 1026.37(a)(7)-1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    2. Closing Disclosure
      1. If there is a seller, whether the credit union has disclosed the contract sale price of the property. (§ 1026.38(a)(3)(vii)(A)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      2. Where there is no seller, whether the credit union has disclosed the appraised value of the property used to determine approval of the credit transaction. (§ 1026.38(a)(3)(vii)(B (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ))

        NOTE: If the credit union has not obtained an appraisal, the credit union may disclose the estimated value of the property labeled “Estimated Prop. Value.” (Comment 1026.38(a)(3)(vii)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

        NOTE: For transactions involving construction where there is no seller, this disclosure must be the value of the property that is used to determine the approval of the credit transaction. That disclosure includes any improvements to be made to the property if those improvements were considered when approving the loan. (Comment 1026.38(a)(3)(vii)-1 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  4. Loan Term. Whether the term to maturity of the credit transaction is disclosed. (§§ 1026.37(a)(8) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , 1026.38(a)(5)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

    NOTE: For a CP Loan-Combined, the loan term is the total combined term of the construction and permanent periods. (Comment 1026 Appendix D-7.i.A (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ).

    NOTE: For a CP Loan-Separate (Permanent Phase), the loan term of the permanent financing is counted from the date that interest for the permanent financing periodic payments begins to accrue, regardless of when the permanent phase is disclosed. (Comment 1026 Appendix D-7.i.B (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ).
  5. Product Type. Whether the loan product description includes:
    1. “Adjustable rate,” “Step rate,” or “Fixed rate,” as applicable, and the features that may change the periodic payment (Negative amortization, Interest only, Step payment, Balloon payment, Seasonal payment) (§§ 1026.37(a)(10) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , 1026.38(a)(5)(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    2. “Interest Only” feature is disclosed if one or more regular periodic payments may be applied only to interest accrued and not to the loan principal. (§§ 1026.37(a)(10)(ii)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , 1026.38(a)(5)(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

      NOTE: If there is a final balloon payment that includes principal (typically construction-only and separate construction phase disclosures), the final balloon payment is excluded for purposes of determining the duration of the “Interest Only” payment period. (Comment 1026 Appendix D-7.ii.A (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

      NOTE: For a CP Loan-Combined, the “Interest Only” payment period is the full term of the interest-only construction phase, plus any interest-only period in the permanent phase. (Comment 1026 Appendix D-7.ii.B (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    3. “Adjustable Rate” product is disclosed if the interest rate may increase after consummation, but the rates that will apply or the periods for which they will apply are not known at consummation. (§ 1026.37(a)(10)(i)(A)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)

      NOTE: For a CP Loan-Combined and CP Loan-Separate (Permanent Phase), if the interest rate for the permanent phase is not known at consummation for a construction-permanent loan using a single, combined construction-permanent disclosure or using separate disclosures for the permanent phase, the credit union shall disclose the loan product under §§ 1026.37(a)(10) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and 1026.38(a)(5)(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) as “Adjustable Rate.” (Comment 1026 Appendix D-7.ii.C (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

      NOTE: For a CP Loan-Combined transaction, if the interest rate for the permanent phase is known at consummation but different from the construction phase interest rate, the product is disclosed as “Step Rate.” (§ 1026.37(a)(10)(i)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ; Comment 1026 Appendix D-7.ii.C (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  6. Interest Rate. Whether the interest rate that will be applicable to the transaction at consummation is disclosed; and if the interest rate at consummation is not known for an adjustable rate transaction, whether the fully-indexed rate (i.e., the interest rate calculated using the index value and margin at the time of consummation is disclosed. (§ 1026.37(b)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

    NOTES: CP Loan-Combined and CP Loan-Separate (Permanent Phase):

    If the permanent phase has an adjustable rate at consummation and separate disclosures are provided, the rate disclosed for the permanent financing is the fully-indexed rate pursuant to § 1026.37(b)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) at the time of the consummation. (Comment 1026 Appendix D-7.iii (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

    If the permanent phase has a rate that is not known at consummation, the credit union discloses the best information reasonably available at the time the disclosure is provided to the consumer. (Comment 1026.19(e)(1)(i)-1 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ; § 1026.17(c)(2)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ; Comment 1026.17(c)(2)(i)-1 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

    If the permanent phase has a fixed rate that will not be adjusted when the construction phase converts to the permanent phase, that rate is used for disclosures. (Comment 1026 Appendix D-7.iii (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

    If the loan contract secured by a principal dwelling provides that the permanent loan interest rate may adjust at conversion, and such rate adjustment results in a corresponding payment adjustment, and if the interest rate for the permanent phase will be fixed after the conversion, the credit union provides the adjustable rate disclosures in § 1026.20(c) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . However, if the loan contract secured by a principal dwelling provides that the permanent loan interest rate may adjust at conversion, and such rate adjustment results in a corresponding payment adjustment, and if the interest rate for the permanent phase is adjustable, the credit union provides the adjustable rate disclosures in §§ 1026.20(c) and (d) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (Comment 1026 Appendix. D-7.iii (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  7. Projected Payments. Whether a separate table itemizes each separate periodic payment (or range), together with estimated taxes, insurance and assessments, and escrow account payments. (§§ 1026.37(c) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , 1026.38(c) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

    NOTE: For a Construction-Only and CP Loan-Separate (Construction Phase), the construction phase is disclosed according to the requirements for the Projected Payments table, including disclosure of the amounts of any interest-only payments. If the terms of the construction phase do not account for repayment of the entire principal, the credit union must disclose a balloon payment in a separate column, and balloon payment disclosures are provided. (Comment 1026 Appendix D-7.v.A (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

    NOTE: For a CP Loan-Combined, the Projected Payments table reflects the interest-only payments during the construction phase in the first column, which also reflects the amortizing payments, and mortgage insurance and escrow payments, if any, for the permanent phase if the term of the construction phase is not a full year. (Comment 1026 Appendix D-7.v.B (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

    NOTE: For a CP Loan-Combined when only the terms of the permanent phase require mortgage insurance or escrow, the disclosure of such amounts depends on whether the first column of the table exclusively discloses the construction phase. If so, the credit union discloses “0” mortgage insurance and/or “-“ for escrow in the first column if the construction phase does not include mortgage insurance or escrow; if payments for both phases are disclosed in the first column, the amount of mortgage insurance premium or any escrow payment for the permanent phase is disclosed in the first column. (Comment 1026 Appendix D-7.v.C (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  8. Disclosure of Construction Costs. (Construction-only; CP-Combined; CR-Separate Construction Phase)

    NOTE: Construction costs are the costs of improvements to be made to the property that the consumer contracts for in connection with the financing transaction and that will be paid in whole or in part with loan proceeds. (Comment 1026 Appendix D-7.vi.A (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    1. Loan Estimate. Whether on the Loan Estimate, a credit union factors construction costs into the “funds for borrower” calculation in the Calculating Cash to Close table or the “Payoffs and Payments” calculation in the optional alternative calculating cash to close table for transactions without a seller or for simultaneous subordinate financing. (§ 1026.37(h) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ; Comment Appendix D-7.vi.B (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    2. Closing Disclosure. Whether on the Closing Disclosure, a credit union includes construction costs in the “Itemization of amounts due from borrower” in the “Summary of Borrower’s Transaction” (§ 1026.38(j)(1)(v) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) and factors them into the “Down payment/funds from borrower” and “Funds for borrower” calculations of the Calculating Cash to Close table or in the “Payoffs and Payments” section of the Closing Cost details in the optional alternative Calculating Cash to Close Table for transactions without a seller or for simultaneous subordinate financing. (§ 1026.38(e) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) as modified under § 1026.38(t)(5)(vii)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ). (Comment 1026 Appendix D-7.vi.C (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

      NOTE: If a credit union places a portion of a construction loan’s proceeds in a reserve or other account at consummation, the credit union may separately disclose this from the other construction costs disclosed in the “Itemization of amounts due from borrower” in the Summaries of Transactions table under § 1026.38(j)(1)(v (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ), if space permits. (Comment 1026 Appendix D-7.vi.D (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) The credit union may disclose the amount of such reserve or other account as a separate itemized cost, along with an itemized cost for the balance of the construction costs, under disclosure and calculation options described in Comments 1026 Appendix D-7.vi.B and C (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .
  9. Inspection and Handling Fees. (Construction-only; CP-Combined; CP-Separate (Construction Phase) Whether inspection and handling fees, which are Loan Costs, are included in the Loan Cost table (or an addendum) and certain disclosures, including “In 5 Years” (§ 1026.37(l)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) and “Total of Payments” (§ 1026.38(o)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ). (§§ 1026.37(f) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , 1026.38(f) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

    NOTE: Inspection and handling fees, for the staged disbursement of construction loan proceeds, including draw fees, are part of the finance charge. (Comments 1026.4(a)-1.ii.A, Appendix D-7.vii (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

    NOTE: If inspection and handling fees are collected before or at consummation, the total of such fees is disclosed in the Loan Costs table. (Comments 1026.37(f)-3, Appendix. D-7.vi (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) i)

    NOTE: If inspection and handling fees will be collected after consummation, the total of such fees is disclosed in a separate addendum under the heading “Inspection and Handling Fees Collected After Closing” and the fees are not counted for purposes of the Calculating Cash to Close table. (Comments 1026.37(f)-3, 1026.37(f)(6)-3, 1026.38(f)-2, Appendix D-7.vii (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ).

    NOTE: If inspection and handling costs are collected, such costs are included in the sum of the “In 5 Years” disclosure (Loan Estimate) and the “Total of Payments” (Closing Disclosure), even when disclosed on an addendum. (Comment 1026 Appendix D-7.vii (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

Closed-End Credit Disclosure Forms – For transactions not subject to sections §§ 1026.19(e) and (f) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)

  1. General Disclosures. Determine that the disclosures are clear, conspicuous, and grouped together or segregated as required, in a form the consumer may keep.
    1. For loans subject to § 1026.18(s) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , the terms “Finance Charge” and “Annual Percentage Rate” and corresponding rates or amounts must be more conspicuous than other terms, except for the credit union’s identity. (§ 1026.17(a)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ).
    2. For reverse mortgages subject to § 1024.33 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) in Regulation X, the disclosures required under § 1026.33(b) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .
    3. For private student loans the term “Annual Percentage Rate” and corresponding rate must be less conspicuous than the term “finance charge” and the corresponding amount, as well as less conspicuous than the interest rate, the notice of the right to cancel and credit union’s identity. (§§ 1026.17(a) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , 1026.47(b), and (c) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  2. Required Disclosures. Determine whether the disclosures are accurately completed and include the following disclosures, as applicable:
    1. Identity of the credit union; (§ 1026.18(a) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    2. Amount financed; (§ 1026.18(b) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    3. Itemization of amount financed; (§ 1026.18(c) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    4. Brief description of the APR; (§ 1026.18(e) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    5. Variable rate information; (§§ 1026.18(f)(1) or (2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    6. Payment schedule; (§ 1026.18(g) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    7. Brief description of the total of payments; (§ 1026.18)(h) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    8. Demand feature; (§ 1026.18(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    9. Description of total sales price in a credit sale; (§ 1026.18(j) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    10. Prepayment penalties or rebates; (§ 1026.18(k) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    11. Late payment amount or percentage; (§ 1026.18(l) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    12. Description for security interest; (§ 1026.18(m) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    13. Insurance conditions for finance charge exclusions; (§§ 1026.4(d) and 1026.18(n) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    14. Statement concerning certain security interest charges; (§§ 1026.4(e) and 1026.18 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (o))
    15. Statement referring to the contract; (§ 1026.18(p) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    16. Statement regarding assumption of the note; (§ 1026.18(q) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    17. Statement regarding required deposits; and (§ 1026.18(r) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    18. Interest rate and payment summary for mortgage transactions. (§ 1026.18(s) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  3. Scheduled Payments Disclosure. Determine that the credit union discloses the number, amounts, and timing of payments scheduled to repay the obligation (other than for a transaction that is subject to section 1026.18 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (s)3. (§ 1026.18(g) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  4. Interest Rate and Payment Disclosures. Determine that the credit union discloses the following information about the interest rate and payments, as applicable. (§ 1026.18(s) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    1. Interest Rates
      1. For a fixed-rate mortgage, the interest rate at consummation. (§ 1026.18(s)(2)(i)(A) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      2. For an adjustable-rate or step-rate mortgage: (§ 1026.18(s)(2)(i)(B)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
        1. The interest rate at consummation and the period of time until the first interest rate adjustment may occur, labeled as the “introductory rate and monthly payment;”

          NOTE: As set forth in Official Interpretation to § 1026.18(s)-1 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , if periodic payments are not due monthly, the credit union must use the appropriate term, such as “quarterly” or “annually.”
        2. The maximum interest rate that may apply during the first five years after the date the first regular periodic payment will be due and the earliest date that rate may apply, labeled as “maximum during first five years”; and
        3. The maximum interest rate that may apply during the life of the loan and the earliest date that rate may apply, labeled as “maximum ever.”
      3. For a loan that provides for payment increases occurring without regard to an interest rate adjustment 4 (as described in § 1026.18(s)(3)(i)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ), the interest rate in effect at the time the first payment increase is scheduled to occur and the date the increase will occur, labeled as “first adjustment” if the loan is an adjustable-rate mortgage or, otherwise, labeled as “first increase.” 5 (§ 1026.18(s)(2)(i)(C) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      4. For a negative amortization loan6 (§ 1026.18(s)(2)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ):
        1. The interest rate at consummation and, if it will adjust after consummation, the length of time until it will adjust, and the label “introductory” or “intro”;
        2. The maximum interest rate that could apply when the consumer must begin making fully amortizing payments under the terms of the legal obligation;
        3. If the minimum required payment will increase before the consumer must begin making fully amortizing payments, the maximum interest rate that could apply at the time of the first payment increase and the date the increase is scheduled to occur; and
        4. If a second increase in the minimum required payment may occur before the consumer must begin making fully amortizing payments, the maximum interest rate that could apply at the time of the second payment increase and the date the increase is scheduled to occur.
      5. Introductory rate for an amortizing adjustable-rate mortgage, if the interest rate at consummation is less than the fully indexed rate, the following (placed in a box directly beneath the table required by section 1026.18(s)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) of the regulation, in a format substantially similar to Model Clause H–4(I) in the regulation’s Appendix H (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ):
        1. The interest rate that applies at consummation and the period of time it applies;
        2. A statement that, even if market rates do not change, the interest rate will increase at the first adjustment and a designation of the place in sequence of the month or year, as applicable, of such rate adjustment (e.g., “in the third year”); and
        3. The fully-indexed rate.
    2. Payments for Amortizing Loans
      1. Principle and interest payments. If all periodic payments will be applied to accrued interest and principal, for each interest rate disclosed under § 1026.18(s)(2)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) : (§ 1026.18(s)(3)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
        1. The corresponding periodic principal and interest payment, labeled as “principal and interest”;
        2. If the periodic payment may increase without regard to an interest rate adjustment, the payment that corresponds to the first increase and the earliest date on which the increase could occur;
        3. If an escrow account is established, an estimate of the amount of taxes and insurance, including any mortgage insurance payable with each periodic payment; and
        4. The sum of the amounts disclosed under §§ 1026.18(s)(3)(i)(A) and (C) or 1026.18(s)(3)(i)(B) and (C) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , as applicable, labeled as “total estimated monthly payment.”
      2. Interest-only payments. If the loan is an interest-only loan, for each interest rate disclosed under § 1026.18(s)(2)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , the corresponding periodic payment and (§ 1026.18(s)(3)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ):
        1. If the payment will be applied to only accrued interest, the amount applied to interest, labeled as “interest payment,” and a statement that none of the payment is being applied to principal;
        2. If the payment will be applied to accrued interest and principal, an itemization of the amount of the first such payment applied to accrued interest and to principal, labeled as “interest payment” and “principal payment,” respectively;
        3. The escrow information described in § 1026.18(s)(3)(i)(C) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ; and
        4. The sum of all amounts required to be disclosed under §§ 1026.18(s)(3)(ii)(A) and (C) or 1026.18(s)(3)(ii)(B) and (C) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , as applicable, labeled as “total estimated monthly payment.”
      3. Payments for negative amortization loans. If the loan is a negative amortization loan: (§ 1026.18(s)(4) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
        1. The minimum periodic payment required until the first payment increase or interest rate increase, corresponding to the interest rate disclosed under § 1026.18(s)(2)(ii)(A) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ;
        2. The minimum periodic payment that would be due at the first payment increase and the second, if any, corresponding to the interest rates described in §§ 1026.18(s)(2)(ii)(C) and (D) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ;
        3. A statement that the minimum payment pays only some interest, does not repay any principal, and will cause the loan amount to increase;
        4. The fully amortizing periodic payment amount at the earliest time when such a payment must be made, corresponding to the interest rate disclosed under § 1026.18 (s)(2)(ii)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ; and
        5. If applicable, in addition to the payments in §§ 1026.18(s)(4)(i) and (ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , for each interest rate disclosed under § 1026.18(s)(2)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , the amount of the fully amortizing periodic payment, labeled as the “full payment option,” and a statement that these payments pay all principal and all accrued interest.

          NOTE: The information in §§1026.18(s)(2)–(4) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) must be disclosed in the form of a table with no more than five columns, and with headings and format substantially similar to Model Clause H–4(E), H–4(F), H–4(G), or H–4(H) in Appendix H (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) of the regulation. The table must contain only the information required in §§ 1026.18 (s)(2)–(4) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , be placed in a prominent location, and be in a minimum 10-point font. (§ 1026.18(s)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      4. Balloon payments. For loans with balloon payments (defined as a payment that is more than two times a regular periodic payment): (§ 1026.18(s)(5) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
        1. Except as provided below, the balloon payment is disclosed separately from other periodic payments disclosed in the table (i.e., is outside the table and in a manner substantially similar to Model Clause H–4(J) in Appendix H (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) to the regulation);
        2. If the balloon payment is scheduled to occur at the same time as another payment required to be disclosed in the table, the balloon payment must be disclosed in the table.
  5. Negative Amortization. Determine that the following information is disclosed (close to the table required in § 1026.18(s)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , with headings, content, and format similar to Model Clause H–4(G) in Appendix H (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) to this part) for a negative amortization loan (other than a transaction secured by a consumer’s interest in a timeshare plan described in 11 U.S.C. 101(53D) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ): (§ 1026.18(s)(6) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    1. The maximum interest rate, the shortest period of time in which such interest rate could be reached, the amount of estimated taxes and insurance included in each payment disclosed, and a statement that the loan offers payment options, two of which are shown; and
    2. The dollar amount of the increase in the loan’s principal balance if the consumer makes only the minimum required payments for the maximum possible time and the earliest date the consumer must begin making fully amortizing payments, assuming that the maximum interest rate is reached at the earliest possible time.
  6. No Refinance Guarantee. Determine that the credit union disclosed a statement that there is no guarantee the consumer can refinance the transaction to lower the interest rate or periodic payments (other than a transaction secured by a consumer’s interest in a timeshare plan described in 11 U.S.C.101(53D) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) . (§ 1026.18(t)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

    NOTE: The statement required by § 1026.18(t)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) must be in a form similar to Model Clause H–4(K) in Appendix H (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) to the regulation. (§ 1026.18(t)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  7. Variable Rate Disclosures. Determine all variable rate loans with a maturity greater than one year secured by a principal dwelling are given the following disclosures at the time of application: (§ 1026.19 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    1. Consumer Handbook on Adjustable Rate Mortgages or substitute;
    2. Statement that interest rate payments and/or terms can change;
    3. The index/formula and a source of information;
    4. Explanation of the interest rate/payment determination and margin;
    5. Statement that the consumer must ask for the current interest rate and margin;
    6. Statement that the interest rate is discounted, if applicable;
    7. Frequency of interest rate and payment changes;
    8. Rules relating to all changes;
    9. Either a historical example based on 15 years, or the initial rate and payment with a statement that the periodic payment may substantially increase or decrease together with a maximum interest rate and payment;
    10. Explanation of how to compute the loan payment, giving an example;
    11. Demand feature, if applicable;
    12. Statement of content and timing of adjustment notices; and
    13. Statement that other variable rate loan program disclosures are available, if applicable.
  8. Initial Rate Adjustment Disclosures. Determine that adjustable-rate mortgages with a maturity date greater than one year, secured by a principal dwelling, the credit union, assignee, or servicer provides the following initial rate adjustment disclosures: (§ 1026.20(d)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    1. The date of the disclosure;
    2. An explanation that under the terms of the consumer’s adjustable rate mortgage, the time frame that the current rate has been in effect, when the current rate is scheduled to expire, the effective date of the new rate, when additional future interest rate adjustments are scheduled to occur and any other changes to loan terms, features, and options taking effect on the same date, and how the rate change may affect the payment and other loan terms;
    3. A table explaining the current interest rate and payment, the new interest rate and payment, and the date the first new payment is due;

      NOTE: For interest-only and negative amortization adjustable-rate mortgages, the table must include how the current and new rates and payment will be allocated to interest, principal, and escrow (if applicable). See section 1026.20(d)(2)(iii)(C) for more on payment allocation disclosure requirements.
    4. An explanation of how the interest rate is determined, including the specific index or formula used and a source of information about that index or formula, and the type and amount of any adjustment, including a margin and an explanation that a margin is the addition of a certain number of percentage points to the index;
    5. Any limits on the interest rate or payment increases at each interest rate adjustment and over the life of the loan (as applicable), including the extent such limits result in the credit union, assignee, or servicer foregoing any increase in the interest rate and the earliest date that such foregone interest rate increases may apply to future interest rate adjustments, subject to those limits;
    6. An explanation of how the new payment was determined, including the index or formula used to determine the new interest rate;
    7. Any adjustments to the index or formula used to determine the new payment, such as the addition of a margin;
    8. The expected loan balance on the date of the interest rate adjustment;
    9. The remaining loan term expected on the date of the interest rate adjustment and any changes to the term that may have occurred due to the interest rate change;
    10. If the credit union, assignee, or servicer provides an estimated rate payment, a statement that it will provide another disclosure with the actual interest rate to the consumer between two and four months before the first payment at the adjusted level is due, and that the credit union is using an estimated rate;
    11. If applicable, a statement that the new payment will not be allocated to pay loan principal and will not reduce the loan balance. If the new payment will result in negative amortization, a statement that the new payment will not be allocated to pay loan principal and that only part of the interest will be paid, which will add to the loan balance. If the new payment will result in negative amortization as a result of the interest rate adjustment, the statement must state the payment required to fully amortize the remaining balance at the new interest rate over the remainder of the loan term;
    12. A statement indicating the circumstances under which the credit union, assignee, or servicer may impose any prepayment penalty, the time period during which it may impose the penalty, and a statement that the consumer may contact the servicer for additional information, including the maximum amount of the penalty that may be charged to the consumer;
    13. A telephone number of the credit union, assignee, or servicer to call if the consumer anticipates not being able to make the new payment;
    14. A statement listing alternatives that consumers may pursue if they anticipate not being able to make the new payment;
    15. A web address to access either the CFPB or the Department of Housing and Urban Development’s (HUD) approved list of homeownership counselors and counseling organizations, the HUD toll-free number to access the HUD list of homeownership counselors and counseling organizations, and the CFPB’s website to access state housing finance authorities’ contact information.
  9. Rate Change with Payment Change. Determine that for any adjustable-rate mortgage with a maturity date greater than one year, secured by a principal dwelling, the credit union, assignee, or servicer provides the following rate adjustment disclosures for rate adjustments with a corresponding payment change: (§ 1026.20(c) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

    NOTE: A credit union, assignee or servicer subject to the Fair Debt Collection Practices Act (FDCPA) that has received the consumer’s notification to cease communication pursuant to FDCPA section 805(c) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) is exempt from this requirement.

    NOTE: Model and sample disclosures H-4(D)(1) through (4) containing all necessary information can be found in Appendix H (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . The disclosures required under §§ 1026.20(c) and (d) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) must be in the form of a table and in the same order as, and with headings and format similar to, the model disclosures. (§§ 1026.20(c)(3) and (d)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

    NOTE: When examining a credit union, an assignee, or a servicer that continues to own the loan, if the entity states that another entity has the obligation to provide the disclosures, examiners must determine whether the entity takes steps to ensure that the other party (the credit union, assignee, or servicer, as applicable) is complying with the obligation to provide the disclosures.

    NOTE: For interest-only and negatively amortizing payments, the table must include how the current and new rates and payment will be allocated to interest, principal, and escrow (if applicable). See § 1026.20(d)(2)(iii)(C) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) for more on payment allocation disclosure requirements.
     
    1. An explanation that under the terms of the consumer’s adjustable rate mortgage, the time frame that the current rate has been in effect is ending and the interest rate and payment will change, the effective date of the new rate, when additional future interest rate adjustments are scheduled to occur and any other changes to loan terms, features, and options taking effect on the same date, such as the expiration of interest-only or payment-option features; a table explaining the current interest rate and payment, the new interest rate and payment, and the date the first new payment is due;
    2. An explanation of how the interest rate is determined, including the specific index or formula used and a source of information about that index or formula, and the type and amount of any adjustment, including a margin and an explanation that a margin is the addition of a certain number of percentage points to the index, and any application of previously foregone interest rate increases from past rate adjustments;
    3. Any limits on the interest rate or payment increases at each interest rate adjustment and over the life of the loan (as applicable), including the extent to which such limits result in the credit union, assignee, or servicer foregoing any increase in the interest rate and the earliest date that such foregone interest rate increases may apply to future interest rate adjustments, subject to those limits;
    4. An explanation of how the new payment is determined, including the index or formula used to determine the new interest rate;
    5. Any adjustments to the index or formula the credit union, assignee, or servicer uses to determine the new payment, such as the addition of a margin or the application of any previously foregone interest rate increases from past interest rate adjustments;
    6. The expected loan balance on the date of the interest rate adjustment;
    7. The remaining loan term expected on the date of the interest rate adjustment and any changes to the term that may have occurred due to the interest rate change;
    8. If applicable, a statement that the new payment will not be allocated to pay loan principal and will not reduce the loan balance. If the new payment will result in negative amortization, a statement that the new payment will not be allocated to pay loan principal and that only part of the interest will be paid, which will add to the loan balance. If the new payment will result in negative amortization as a result of the interest rate adjustment, the statement must state the payment required to fully amortize the remaining balance at the new interest rate over the remainder of the loan term;
    9. A statement indicating the circumstances under which the credit union, assignee, or servicer may impose any prepayment penalty, the time period during which it may impose the penalty, and a statement that the consumer may contact the servicer for additional information, including the maximum amount of the penalty that may be charged to the consumer;
       
  10. High-Cost Mortgages. Determine that the disclosures required for high-cost mortgage transactions (§ 1026.32 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) clearly and conspicuously include the items below. (§ 1026.32(c) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , see Form H-16 in Appendix H (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    1. The required statement “you are not required to complete this agreement merely because you have received these disclosures or have signed a loan application. If you obtain this loan, the lender will have a mortgage on your home. You could lose your home, and any money you have put into it, if you do not meet your obligations under the loan.”
    2. The APR.
    3. Amount of the regular monthly (or other periodic) payment and the amount of any balloon payment. The regular payment must include amounts for voluntary items, such as credit life insurance or debt-cancellation coverage, only if the consumer has previously agreed to the amount (See the Official Interpretation to § 1026.32(c)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ).
    4. Statement that the interest rate may increase and monthly payment may increase, and the amount of the single maximum monthly payment, based on the maximum interest rate allowed under the contract, if applicable.
    5. The amount borrowed. For a closed-end mortgage, the amount borrowed is the total amount borrowed, as reflected by the face amount of the note; and where the amount borrowed includes premiums or other charges for optional credit insurance or debt- cancellation coverage (grouped together with the amount borrowed), that fact must be stated. For an open-end credit plan, the amount borrowed is the credit limit for the plan when the account is opened.
  11. Escrow cancellation notice. For a closed-end loan secured by a first lien on real property or a dwelling (other than a reverse mortgage), where an escrow account (as defined under § 1024.17(b) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) is cancelled, determine whether: (§ 1026.20(e) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    1. The credit union or servicer provided an Escrow Closing Notice with the following clearly and conspicuously disclosed: (§ 1026.20(e)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
      1. A statement informing the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) of the date on which the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) will no longer have an escrow account;
      2. A statement that an escrow account may also be called an impound or trust account;
      3. A statement of the reason why the escrow account will be closed;
      4. A statement that without an escrow account, the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) must pay all property costs, such as taxes and homeowner's insurance, directly, possibly in one or two large payments a year;
      5. A table, titled “Cost to you,” that contains an itemization of the amount of any fee the credit union (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) or servicer imposes on the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) in connection with the closure of the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) 's escrow account, labeled “Escrow Closing Fee,” and a statement that the fee is for closing the escrow account; and (§ 1026.20(e)(2)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      6. Information under the reference “In the future” that includes: (§ 1026.20(e)(2)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
        1. A statement of the consequences if the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) fails to pay property costs, including the actions that a State (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) or local government may take if property taxes are not paid and the actions the credit union (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) or servicer may take if the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) does not pay some or all property costs, such as adding amounts to the loan balance, adding an escrow account to the loan, or purchasing a property insurance policy on the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) 's behalf that may be more expensive and provide fewer benefits than a policy that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) could obtain directly; (§ 1026.20(e)(2)(ii)(A) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
        2. A statement with a telephone number that the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) can use to request additional information about the cancellation of the escrow account; (§ 1026.20(e)(2)(ii)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
        3. A statement of whether the credit union (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) or servicer offers the option of keeping the escrow account open and, as applicable, a telephone number the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) can use to request that the account be kept open; and (§ 1026.20(e)(2)(ii)(C) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
        4. A statement of whether there is a cut-off date by which the consumer (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) can request that the account be kept open. (§ 1026.20(e)(2)(ii)(D) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    2. Form. The disclosure meets the formatting requirements of section 1026.20(e)(4) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , and is substantially similar to model form H-29 in Appendix H (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (1026.20(e)(4) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    3. Timing. The credit union or servicer ensures that the consumer receives the Escrow Closing Notice in the following time periods:
      1. If the cancellation is upon the consumer’s request, no later than three business days before the closure of the consumer’s escrow account; (§ 1026.20(e)(5)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      2. If cancellation is other than upon the consumer’s request, no later than 30 business days before the closure of the consumer’s escrow account. (§ 1026.20(e)(5)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

        NOTE: If the disclosures are not provided in person, the consumer is considered to have received the disclosures three business days after they are delivered or placed in the mail. (§ 1026.20(e)(5)(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

Successors In Interest

If, upon confirmation, a servicer provided a confirmed successor in interest who is not liable on the mortgage loan obligation with an optional notice and acknowledgement form in accordance with § 1024.32(c)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , determine whether the servicer provided a confirmed successor in interest any written disclosure required by the following (if applicable): § 1026.20(c) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (rate adjustments with corresponding change in payment), § 1026.20(d) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (initial rate adjustment), or § 1026.20(e) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (escrow account cancellation notice), once the confirmed successor in interest either assumed the mortgage loan obligation under State law or provided the servicer an executed acknowledgement form in accordance with § 1024.32(c)(1)(iv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) that the confirmed successor in interest has not revoked.

High-Cost Mortgages

Determine that the disclosures required for high-cost mortgage transactions (§ 1026.32 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) clearly and conspicuously include the items below. (§ 1026.32(c) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , Form H-16 in Appendix H (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

  1. The required statement “you are not required to complete this agreement merely because you have received these disclosures or have signed a loan application. If you obtain this loan, the lender will have a mortgage on your home. You could lose your home, and any money you have put into it, if you do not meet your obligations under the loan.”
  2. The APR.
  3. Amount of the regular monthly (or other periodic) payment and the amount of any balloon payment. The regular payment should include amounts for voluntary items, such as credit life insurance or debt-cancellation coverage, only if the consumer has previously agreed to the amount (Comment 1026.32(c)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ).
  4. Statement that the interest rate may increase and monthly payment may increase, and the amount of the single maximum monthly payment, based on the maximum interest rate allowed under the contract, if applicable. The amount borrowed. For a closed-end mortgage, the amount borrowed is the total amount borrowed, as reflected by the face amount of the note; and where the amount borrowed includes premiums or other charges for optional credit insurance or debt-cancellation coverage (grouped together with the amount borrowed), that fact shall be stated. For an open-end credit plan, the amount borrowed is the credit limit for the plan when the account is opened.

Notice of Transfer

For any open-end loan secured by a principal dwelling or for any closed-end mortgage loan secured by a dwelling or real property that was sold, assigned, or otherwise transferred to the covered person, determine that the covered person notifies the borrower clearly and conspicuously in writing, in a form that the consumer may keep of such transfer, including: (§ 1026.39 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

  1. An identification of the loan that was sold, assigned, or otherwise transferred;
  2. The name, address, and telephone number of the covered person who owns the mortgage loan;
  3. The date of transfer (either the date of acquisition recognized in the books and records of the covered person or that of the transferring party) identified by the covered person;
  4. The name, address, and telephone number of an agent or party having authority, on behalf of the covered person, to receive notice of the right to rescind and resolve issues concerning the consumer’s payments on the mortgage loan;
  5. Where transfer of ownership of the debt to the covered person is or may be recorded in public records or, alternatively, that the transfer of ownership has not been recorded in public records at the time the covered person provides the disclosure; and,
  6. At the option of the covered person, any other relevant information about the transaction.
  7. If there are multiple covered persons, contact information for each of them, unless one of them has been authorized to receive the consumer’s notice of the right to rescind and resolve issues concerning the consumer’s payments on the loan.
  8. If the loan is a closed-end consumer mortgage loan secured by a dwelling or real property, other than a reverse mortgage transaction subject to § 1026.33 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) of this part, the following information about the covered person’s partial payment policy, under the subheading “Partial Payment”:

    NOTE: This notice of sale or transfer must be provided for any consumer credit transaction that is secured by the principal dwelling of a consumer, except as noted above. This notification is required of the covered person even if the loan servicer remains the same. In addition, if more than one consumer is liable on the obligation, the covered person may mail or deliver the disclosure notice to any consumer who is primarily liable. And, if an acquisition involves multiple covered persons who each acquire a partial interest in the loan pursuant to separate and unrelated agreements, each covered person has a duty to ensure that disclosures related to its acquisition are accurate and provided in a timely manner unless an exception in § 1026.39(c) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) applies. The parties may, but are not required to, provide a single notice that satisfies the timing and content requirements applicable to each covered person. (Comment 1026.39(b)(5)-2 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

    NOTE: Each covered person must provide the notice of transfer or sale to confirmed successors in interest unless the exemption under § 1026.39(f) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) applies.
    1. If periodic payments that are less than the full amount due are accepted, a statement that the covered person, using the term “lender,” may accept partial payments and apply such payments to the consumer’s loan;
    2. If periodic payments that are less than the full amount due are accepted but not applied to a consumer’s loan until the consumer pays the remainder of the full amount due, a statement that the covered person, using the term “lender,” may hold partial payments in a separate account until the consumer pays the remainder of the payment and then apply the full periodic payment to the consumer’s loan;
    3. If periodic payments that are less than the full amount due are not accepted, a statement that the covered person, using the term “lender,” does not accept any partial payments; and
    4. A statement that, if the loan is sold, the new covered person, using the term “lender,” may have a different policy.

      NOTE: You may use the format of the partial payment disclosure illustrated by form H-25 of Appendix H (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . The text illustrating the disclosure in form H-25 may be modified by you to suit the format of the mortgage transfer notice. (Comment 1026.39(d)(5)-1 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

Treatment of Credit Balances

If an account’s credit balance is in excess of one dollar, determine whether the credit union:

  1. Credited the amount of the credit balance to the consumer’s account;
  2. Refunded any part of the remaining credit balance, upon the written request of the consumer; and
  3. Made a good faith effort to refund to the consumer by cash, check, or money order, or credit to a deposit account of the consumer, any part of the credit balance remaining in the account for more than six months, unless the consumer’s location was not known to the credit union and could not be traced through the consumer’s last known address or telephone number. (§ 1026.21 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

Private Education Loans

For private education loans subject to Subpart F, ensure that the required disclosures are accurate (§ 1026.47 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) and contain the following information:

  1. Application or solicitation disclosures disclose the following as required under § 1026.47(a) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) :
    1. Interest rate, including:
      1. Rate or range, and if the rate depends in part on a determination of the borrower’s creditworthiness or other factors, a statement to that effect;
      2. Whether rate is fixed or variable;
      3. If rate may increase after consummation, any limitations, or lack thereof, and if the limitation is imposed by law, that fact. Also, the credit union must state that the consumer’s actual rate may be higher or lower that that disclosed, if applicable; and
      4. Whether the rate will typically be higher if the loan is not co-signed or guaranteed.
    2. Fees and default or late payment costs.
    3. Repayment terms, including:
      1. Term of the loan, which is the period during which regularly scheduled payments of principal and interest will be due.
      2. Deferral options, or if consumer does not have the option to defer, that fact.
      3. For each available deferral option applicable, information about:
        1. Whether interest will accrue during deferral period; and
        2. If interest accrues, whether payment of interest may be deferred and added to the principal balance.
      4. A statement that, if the consumer files bankruptcy, the consumer may still be required to repay the loan.
    4. Cost estimates, based on an example of the total cost of the loan, calculated using:
      1. The highest interest rate and including all applicable finance charges;
      2. An amount financed of $10,000, or $5,000, if the credit union offers loans less than $10,000; and
      3. Calculated for each payment option.
    5. Eligibility (e.g., any age or school enrollment eligibility requirements).
    6. Alternatives to private education loans, including:
      1. A statement that the consumer may qualify for federal student loans;
      2. The interest rates available for each program available under title IV of the Higher Education Act of 1965 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , and whether the rate is variable or fixed;
      3. A statement that the consumer may obtain additional information about student federal financial assistance from his school or U.S. Department of Education, including an appropriate website; and
      4. A statement that a covered educational institution may have school specific educational loan benefits and terms not detailed in the loan disclosure forms.
    7. A statement that if the loan is approved, that the loan will be available for 30 days and the terms will not change, except for changes to the interest rate in the case of a variable rate and other changes permitted by law.
    8. A statement that before consummation, the borrower must complete a self- certification form obtained from the student’s institution of higher education.
  2. For approval disclosures, the following information is required under § 1026.47(b) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) :
    1. Interest rate, information, including:
      1. Interest rate applicable to the loan
      2. Whether the interest rate is variable or fixed; and
      3. If the interest rate may increase after consummation, any limitations on the rate adjustments, or lack thereof.
    2. Fees and default or late payment costs, including:
      1. An itemization of the fees or range of fees required to obtain the loan; and
      2. Any fees, changes to the interest rate, and adjustments to principal based on the consumer’s defaults or late payments.
    3. Repayment terms, including:
      1. Principal amount;
      2. Term of the loan;
      3. A description of the payment deferral option chosen by the consumer, if applicable, and any other payment deferral options that the consumer may elect at a later time;
      4. Any payments required while the student is enrolled at the educational institution, based on the deferral option the consumer chooses;
      5. Amount of any unpaid interest that will accrue while the student is enrolled in school, based upon the deferral option chosen by the consumer;
      6. A statement that if the consumer files for bankruptcy, that the consumer may still be required to pay back the loan;
      7. An estimate of the total amount of payments calculated based upon:
      8. The interest rate applicable to the loan (compliance with § 1026.18(h) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) constitutes compliance with this requirement);
      9. The maximum possible rate of interest for the loan, or, if a maximum rate cannot be determined, a rate of 25 percent.
      10. If a maximum rate cannot be determined, the estimate of the total amount for repayment must include a statement that there is no maximum rate and that the total amount for repayment disclosed is an estimate.
      11. The maximum monthly payment based on the maximum rate of interest for the loan, or, if a maximum rate of interest cannot be determined, a rated of 25 percent. If a maximum cannot be determined, a statement that there is no maximum rate and that the monthly payment amount disclosed is an estimate and will be higher if the applicable interest rate increases.
    4. Alternatives to private education loans, including:
      1. A statement that the consumer may qualify for federal student loans;
      2. The interest rates available for each program available under Title IV of the Higher Education Act of 1965, and whether the rate is variable or fixed; and
      3. A statement that the consumer may obtain additional information about student federal financial assistance from his school or U.S. Department of Education, including an appropriate website.
    5. A statement that the consumer may accept the terms of the loan until the acceptance period under § 1026.48(c)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) has expired. The statement must include:
      1. The specific date the acceptance period expires, based on the date the consumer receives the disclosures required under this subsection for the loan;
      2. The method or methods by which the consumer may communicate the acceptance (written, oral, or by electronic means; and
      3. A statement that except for changes to the interest rate and other changes permitted by law, the credit union may not change the rates and the terms of the loan during the 30-day acceptance period.
  3. After the consumer has accepted the loan according to § 1026.48(c)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , final disclosures must disclose the information required under § 1026.47(c) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and the following:
    1. Interest rate, including:
      1. Interest rate applicable to the loan;
      2. Whether the interest rate is variable or fixed; and
      3. If the interest rate may increase after consummation, any limitations on the rate adjustments, or lack thereof.
    2. Fees and default or late payment costs, including:
      1. An itemization of the fees or range of fees required to obtain the loan; and
      2. Any fees, changes to the interest rate, and adjustments to principal based on the consumer’s defaults or late payments.
    3. Repayment terms, including:
      1. Principal amount;
      2. Term of the loan;
      3. A description of the payment deferral option the consumer chooses, if applicable, and any other payment deferral options that the consumer may elect at a later time;
      4. Any payments required while the student is enrolled at the educational institution, based on the deferral option the consumer chooses;
      5. Amount of any unpaid interest that will accrue while the student is enrolled in school, based upon the deferral option the consumer chooses;
      6. A statement that if the consumer files for bankruptcy, that the consumer may still be required to pay back the loan;
      7. An estimate of the total amount of payments calculated based upon:
        1. The interest rate applicable to the loan (compliance with § 1026.18(h) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) constitutes compliance with this requirement);
        2. The maximum possible rate of interest for the loan, or, if a maximum rate cannot be determined, a rate of 25 percent;
        3. If a maximum rate cannot be determined, the estimate of the total amount for repayment must include a statement that there is no maximum rate and that the total amount for repayment disclosed is an estimate.
      8. The maximum monthly payment based on the maximum rate of interest for the loan, or, if a maximum rate of interest cannot be determined, a rated of 25 percent. If a maximum cannot be determined, a statement that there is no maximum rate and that the monthly payment amount disclosed is an estimate and will be higher if the applicable interest rate increases.
    4. In a text more conspicuous than any other required disclosure, except for the finance charge, the interest rate, and the credit union’s identity of the following disclosures:
      1. A statement that the consumer has the right to cancel the loan, without penalty, at any time before the midnight of the third business day after the date the consumer receives the final loan disclosures. The statement must include the specific date the cancellation period expires and that the consumer may cancel by that date; (§ 1026.47(c)(4)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      2. A statement that the loan proceeds will not be disbursed until the cancellation period expires; (§ 1026.47(c)(4)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      3. The method or methods the consumer may use to cancel; and (§ 1026.47(c)(4)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      4. If the credit union permits cancellation by mail, the statement specifying that the consumer’s mailed request will be deemed timely if placed in the mail no later than the cancellation date specified on the disclosures. (§ 1026.47(c)(4)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

Open-End Credit Disclosure Forms

  1. Determine that the credit union made the disclosures clearly and conspicuously. (§ 1026.5(a) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  2. Determine that the credit union made the applicable disclosures in writing, in a form that the consumer may keep, except: (§ 1026.5(a)(1)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    1. The following disclosures need not be written:
      1. Charges that are imposed as part of an open-end (not home-secured) plan that are not required to be disclosed; (§ 1026.6(b)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      2. Reduction of the credit limit; (§ 1026.9(c)(2)(vi) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      3. When a finance charge is imposed at the time of the transaction; (§ 1026.9(d) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) and
      4. Opt-in notice for over-the-limit transactions on credit card accounts. (§ 1026.56(b)(1)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    2. The following disclosures need not be in a retainable form:
      1. Disclosures that need not be written as stated above (section 2a); (§ 1026.5(a)(1)(ii)(A) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      2. Alternative summary billing-rights statement; (§ 1026.9(a)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      3. Credit and charge card renewal disclosures; (§ 1026.9(e) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      4. Payment requirements, except as provided in § 1026.7(b)(13) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ; (§ 1026.10(b) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      5. Home-equity disclosures; (§ 1026.40(d) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) and
      6. Credit and charge card applications and solicitations. (§ 1026.60 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    3. The following disclosures may be provided to the consumer in electronic form, subject to compliance with the consumer consent and other applicable provisions of the Electronic Signatures in Global and National Commerce Act (E-Sign Act) (15 U.S.C. 7001 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) et seq.):
      1. Credit and charge card applications and solicitations; (§ 1026.60 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      2. Requirements for home equity plans; and (§ 1026.40 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      3. Advertising. (§ 1026.16 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  3. Determine that the terminology the credit union uses in providing the disclosures required by open end credit general disclosure requirements (§ 1026.5 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) is consistent. (§ 1026.5(a)(2)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  4. Determine that, for home-equity plans, the terms finance charge and annual percentage rate (APR), when required to be disclosed with a corresponding amount or percentage rate, are more conspicuous than any other required disclosure. The terms need not be more conspicuous when used for periodic statement disclosures and for advertisements. (§ 1026.5(a)(2)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  5. Determine that, if disclosures must be presented in a tabular format under § 1026.5(a)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , that the term penalty APR must be used, as applicable. (§ 1026.5(a)(2)( (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) iii))

    NOTE: The term penalty APR need not be used in reference to the annual percentage rate that applies with the loss of a promotional rate, assuming the annual percentage rate that applies is no greater than the annual percentage rate that would have applied at the end of the promotional period; or if the annual percentage rate that applies with the loss of a promotional rate is a variable rate, the annual percentage rate is calculated using the same index and margin as would have been used to calculate the annual percentage rate that would have applied at the end of the promotional period. If credit insurance or debt cancellation or debt suspension coverage is required as part of the plan, the term required must be used and the program must be identified by its name. If an annual percentage rate must be presented in a tabular format, the term fixed, or a similar term, may not be used to describe such rate unless the credit union also specifies a time period that the rate will be fixed and the rate will not increase during that period, or if the credit union does not provide a time period, the rate will not increase while the plan is open.

Credit and Charge Card Application and Solicitation Disclosures

  1. Determine that the credit card solicitation or application disclosures were made clearly and conspicuously on or with a solicitation or an application. (§ 1026.60 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  2. For the disclosures in §§ 1026.60(b)(1)-(5) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (except for §§ 1026.60(b)(1)(iv)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) and 1026.60(b)(7)-(15) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , determine that the credit union made the disclosures required for §§ 1026.60(c), 1026.60(d)(2), 1026.60 (e)(1) and 1026.60 (f) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) in the form of a table with headings, content, and format similar to the applicable tables found in G-10 in Appendix G (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (§ 1026.60(a)(2)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  3. Determine that the table required by § 1026.60(a)(2)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) contains only the information required or permitted by that section. If the credit union provides other information, determine that the information appears outside the table. (§ 1026.60(a)(2)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  4. Determine that the disclosures required by §§ 1026.60(b)(1)(iv)(B)-(C (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ), and 1026.60(b)(6) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) are placed directly beneath the table required by § 1026.60(a)(2)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (§ 1026.60(a)(2)(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  5. When a tabular format is required, determine that the following disclosures are disclosed in bold text: (§ 1026.60(a)(2)(iv)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    1. Annual percentage rate required to be disclosed under § 1026.60(b)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ;
    2. Introductory rate required to be disclosed under § 1026.60(b)(1)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ;
    3. Rate that will apply after a premium initial rate expires required to be disclosed under § 1026.60(b)(1)(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ; and
    4. Fee or percentage amounts or maximum limits on fee amounts required to be disclosed under §§ 1026.60(b)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , 1026.60(b)(4) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , 1026.60(b)(8)-(13) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .

      NOTE: Bold text must not be used for the amount of any periodic fee disclosed under § 1026.60(b)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) that is not an annualized amount, and other APRs or fee amounts disclosed in the table. (§ 1026.60(a)(2)(iv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  6. Determine that the card issuer discloses, on or with an solicitation or application: (§ 1026.60(b) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    1. Annual percentage rate. Each periodic rate that may be used to compute the finance charge on an outstanding balance for purchases, a cash advance, or a balance transfer, expressed as an annual percentage rate. When more than one rate applies for a category of transactions, determine that the credit union also discloses the range of balances to which each rate is applicable. (§ 1026.60(b)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

      NOTE: The APR for purchases disclosed under § 1026.60(b)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) must be in at least 16-point type, except for the following: Oral disclosures of the annual percentage rate for purchases; or a penalty rate that may apply upon the occurrence of one or more specific events.
      1. Variable rate information. If a rate is a variable rate, determine that the card issuer discloses the fact that the rate may vary and how the rate is determined. Determine that the card issuer identifies the type of index or formula that it uses in setting the rate. Determine that the value of the index and the amount of the margin that the issuer uses to calculate the variable rate are not disclosed in the table. Determine further that any applicable limitations on rate increases are not included in the table. (§ 1026.60(b)(1)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      2. Discounted initial rate. If the initial rate is an introductory rate, determine that the card issuer discloses in the table the introductory rate, the time period during which the introductory rate will remain in effect, and the term “introductory” or “intro” in immediate proximity to the introductory rate. Determine further that the card issuer discloses either the variable or fixed rate that would otherwise apply to the account. (§ 1026.60(b)(1)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      3. Premium initial rate. If the initial rate is temporary and is higher than the rate that will apply after the temporary rate expires, determine that the card issuer discloses the premium initial rate and the time period when the premium initial rate will remain in effect. Determine that the premium initial rate for purchases is in at least 16-point type. Determine that the issuer discloses in the table the rate that will apply after the premium initial rate expires, in at least 16-point type. (§ 1026.60(b)(1)(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      4. Penalty rates. Except as for provided introductory rate or employee preferential rate requirements (discussed below), if a rate may increase as a penalty for one or more events specified in the account agreement, such as a late payment or an extension of credit that exceeds the credit limit, determine that the card issuer discloses the increased rate that may apply, a brief description of the event or events that may result in the increased rate, and a brief description of how long the increased rate will remain in effect. (§ 1026.60(b)(1)(iv)(A) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      5. Introductory rate. If the issuer discloses an introductory rate in the table or in any written or electronic promotional materials accompanying applications or solicitations (and subject to paragraph (c) or (e) of section 1026.60), determine that the issuer briefly discloses, directly beneath the table, the circumstances, if any, under which the introductory rate may be revoked, and the type of rate that will apply after the introductory rate is revoked. (§ 1026.60(b)(1)(iv)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      6. Employee preferential rates. If the issuer discloses in the table a preferential APR for which only employees of the card issuer, employees of a third party, or other individuals with similar affiliations with the card issuer or third party are eligible, determine that the issuer briefly discloses directly beneath the table the circumstances under which such preferential rate may be revoked and the rate that will apply after the preferential rate is revoked. (§ 1026.60(b)(1)(iv)(C) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      7. Rates that depend on consumer’s creditworthiness. If a rate cannot be determined at the time disclosures are given because the rate depends, at least in part, on a later determination of the consumer’s creditworthiness, determine that the card issuer discloses the specific rates or the range of rates that could apply and a statement that the rate for which the consumer may qualify at account opening will depend on the consumer’s creditworthiness, and other factors if applicable. (§ 1026.60(b)(1)(v) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

        NOTE: If the rate that depends, at least in part, on a later determination of the consumer’s creditworthiness is a penalty rate, as described in § 1026.60(b)(1)(iv), (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) the card issuer at its option may disclose the highest rate that could apply, instead of disclosing the specific rates or the range of rates that could apply. (§ 1026.60(b)(1)(v) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      8. APRs that vary by state. Determine that the card issuer does not list annual percentage rates for multiple states in the table. Note, however, that issuers imposing annual percentage rates that vary by state may, at the issuer’s option, disclose in the table: the specific annual percentage rate applicable to the consumer’s account; or the range of the annual percentage rates, if the disclosure includes a statement that the annual percentage rate varies by state and refers the consumer to a disclosure provided with the table where the annual percentage rate applicable to the consumer’s account is disclosed. (§ 1026.60(b)(1)(vi) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    2. Fees for issuance or availability. Determine that the card issuer discloses any annual or other periodic fee, expressed as an annualized amount, or any other fee that may be imposed for the issuance or availability of a credit or charge card, including any fee based on account activity or inactivity. (§ 1026.60(b)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    3. Fixed finance charge; minimum interest charge. Determine that the credit union discloses any fixed finance charge that it could impose during a billing cycle, as well as a brief description of that charge. Determine that the credit union discloses any minimum interest charge if it exceeds $1.00 that it could impose during a billing cycle, and a brief description of the charge. (§ 1026.60(b)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    4. Transaction charge. Determine that the credit union discloses any transaction charge imposed for the use of the card for purchases. (§ 1026.60(b)(4) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    5. Grace period. Determine that the issuer discloses the date by which or the period within which any credit extended for purchases may be repaid without incurring a finance charge due to a periodic interest rate and any conditions on the availability of the grace period. If there is no grace period, determine that this fact is disclosed. In disclosing in the tabular format a grace period that applies to all types of purchases, determine that the issuer uses the phrase “How to Avoid Paying Interest on Purchases” as the heading for the row describing the grace period. If a grace period is not offered on all types of purchases, in disclosing this fact in the tabular format, determine that the issuer uses the phrase “Paying Interest” as the heading for the row describing this fact.

      NOTE: If the length of the grace period varies, the card issuer may disclose the range of days, the minimum number of days, or the average number of days in the grace period, if the disclosure is identified as a range, minimum, or average. (§ 1026.60(b)(5) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    6. Balance computation method. Determine that the credit union disclosed the name of the balance computation method that it uses to determine the balance on which the finance charge is computed, or an explanation of the method used if it is not listed. In determining which balance computation method to disclose, the credit union must have assumed that the credit extended will not be repaid within any grace period. (§ 1026.60(b)(6) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

      NOTE: Disclosures required by § 1026.60(b)(6) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) must be placed directly beneath the table.
    7. Statement on charge card payments. Determine that the credit union discloses a statement that charges the consumer incurs by using the charge card are due when then consumer receives the periodic statement. (§ 1026.60(b)(7) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    8. Cash advance fee. Determine that the credit union disclosed any fee it imposed for an extension of credit in the form of cash or its equivalent. (§ 1026.60(b)(8) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    9. Late payment fee. Determine that the credit union disclosed any fee it imposed for a late payment. (§ 1026.60(b)(9) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    10. Over-the-limit fee. Determine that the credit union disclosed any fee it imposed for exceeding the credit limit. (§ 1026.60(b)(10) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    11. Balance transfer fee. Determine that the credit union disclosed any fee it imposed to transfer a balance. (§ 1026.60(b)(11) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    12. Returned payment fee. Determine that the credit union disclosed any fee it imposed for a returned payment. (§ 1026.60(b)(12) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    13. Required insurance, debt cancellation, or debt suspension coverage. Determine that the fee imposed for required insurance, debt cancellation or suspension coverage is disclosed if the insurance, debt cancellation or coverage is required as part of the plan. (§ 1026.60(b)(13) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    14. Available credit. Determine whether total of required fees for the issuance or availability of credit and/or security deposit debited to the account at account opening equal or exceed 15 percent of minimum credit limit for the account. If so, determine that the credit union disclosed, as applicable, the available credit remaining after the fees and/or security deposit are debited to the account. (§ 1026.60(b)(14 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ))
    15. Website reference. For issuers of credit cards that are not charge cards, determine that the credit union disclosed a reference to the website established by the Consumer Financial Protection Bureau (CFPB) and a statement that the consumers may obtain on the website information about shopping for and using credit cards. (§ 1026.60(b)(15 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ))

Requirements for Home Equity Plans

  1. Determine that the following home equity disclosures were made clearly and conspicuously, at the time of application. (§ 1026.40) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    1. Home equity brochure
    2. Statement that the consumer must retain a copy of the disclosure
    3. Statement of the time the specific terms are available
    4. Statement that terms are subject to change before the plan opens
    5. Statement that the consumer may receive a full refund of all fees
    6. Statement that the consumer’s dwelling secures the credit
    7. Statement that the consumer could lose the dwelling
    8. Credit union’s right to change, freeze, or terminate the account
    9. Statement that information about conditions for adverse action are available upon request
    10. Payment terms including the length of the draw and repayment periods, how the minimum payment is determined, the timing of payments, and an example based on $10,000 and a recent APR
    11. A recent APR imposed under the plan and a statement that the rate does not include costs other than interest (fixed rate plans only)
    12. Itemization of all fees paid to the credit union
    13. Estimate of any fees payable to third parties to open the account and a statement that the consumer may receive a good faith itemization of third-party fees
    14. Statement regarding negative amortization, as applicable
    15. Transaction requirements
    16. Statement that the consumer must consult a tax advisor regarding the deductibility of interest and charges under the plan
    17. For variable rate home equity plans, disclose the following:
      1. That the APR, payment, or term may change;
      2. The APR excludes costs other than interest;
      3. Identify the index and its source;
      4. How the APR will be determined;
      5. Statement that the consumer must request information on the current index value, margin, discount, premium, or APR;
      6. Statement that the initial rate is discounted and the duration of the discount, if applicable;
      7. Frequency of APR changes;
      8. Rules relating to changes in the index, APR, and payment amount;
      9. Lifetime rate cap and any annual caps, or a statement that there is no annual limitation;
      10. The minimum payment requirement, using the maximum APR, and when the credit union may impose the maximum APR;
      11. A historical example, based on a $10,000 balance, reflecting all significant plan terms
      12. Statement that the credit union will provide rate information on or with each periodic statement.
  2. For home-equity plans subject to § 1026.40 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , determine that the terms finance charge and annual percentage rate, when required to be disclosed with a corresponding amount or percentage rate, are more conspicuous than any other required disclosure.

    NOTE: The terms need not be more conspicuous when used for periodic statement disclosures under § 1026.7(a)(4) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and for advertisements under § 1026.16 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (§ 1026.5(a)(2)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

Account Opening Initial Disclosures

  1. The following requirements apply only to home-equity plans subject to the requirements of § 1026.40 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . Determine that the credit union discloses, as applicable (§ 1026.6(a)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) :
    1. Finance charge. The circumstances under which the credit union will impose a finance charge and an explanation of how it will be determined, including: a statement of when finance charges begin to accrue, and an explanation of whether or not any time period exists within which any credit extended may be repaid without incurring a finance charge; a disclosure of each periodic rate that the credit union may use to compute the finance charge, the range of balances to which it is applicable, and the corresponding annual percentage rate; an explanation of the method the credit union may use to determine the balance on which the finance charge may be computed; and, an explanation of how the credit union will determine the amount of any finance charge, including a description of how the credit union will determine any finance charge other than the periodic rate. (§ 1026.6(a)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

      If a credit union offers a variable-rate plan, determine that the credit union discloses: the circumstances under which the rate(s) may increase; any limitations on the increase; and the effect(s) of an increase. When different periodic rates apply to different types of transactions, determine that the types of transactions to which the periodic rates must apply must also be disclosed. (§ 1026.6(a)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    2. Other charges. The amount of any charge other than a finance charge that the credit union may impose as part of the plan, or an explanation of how the charge will be determined. (§ 1026.6(a)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    3. Home-equity plan information. The following disclosures, as applicable (§ 1026.6(a)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ):
      1. A statement of the conditions under which the credit union may take certain action, as described in § 1026.40(d)(4)(i), (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) such as terminating the plan or changing the terms;
      2. The payment information described in §§ 1026.40(d)(5)(i) and (ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) for both the draw period and any repayment period;
      3. A statement that negative amortization may occur as described in § 1026.40(d)(9) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ;
      4. A statement of any transaction requirements as described in § 1026.40(d)(10) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ;
      5. A statement regarding the tax implications as described in § 1026.40(d)(11) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ;
      6. A statement that the annual percentage rate imposed under the plan does not include costs other than interest as described in §§ 1026.40(d)(6) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and 1026.40(d)(12)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ; and
      7. The variable-rate disclosures described in §§ 1026.40(d)(12)(viii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , 1026.40(d)(12)(x) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , 1026.40(d)(12)(xi) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , and 1026.40(d)(12)(xii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , as well as the disclosure described in § 1026.40(d)(5)(iii), (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) unless the disclosures the credit union provided with the application were in a form the consumer could keep and included a representative payment example for the category of payment option chosen by the consumer.
    4. Security interests. The fact that the credit union has or will acquire a security interest in the property purchased under the plan, or in other property identified by item or type. (§ 1026.6(a)(4) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    5. Statement of billing rights. A statement that outlines the consumer’s rights and the credit union’s responsibilities under §§ 1026.12(c) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and 1026.13 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and that is similar to the statement found in Model Form G–3 or, at the credit union’s option, G–3(A), in Appendix G (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) to this part. (§ 1026.6(a)(5) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  2. For open-end (not home-secured) plans determine that the credit union provided the account- opening disclosures specified in §§ 1026.6(b)(2)(i)-(v) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (except for § 1026.6 (b)(2)(i)(D)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) and §§ 1026.6 (b)(2)(vii)-(xiv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) in the form of a table with the headings, content, and format substantially similar to any of the applicable tables in G–17 in Appendix G (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . (§ 1026.6(b)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  3. For open-end (not home-secured) plans, determine that the credit union discloses the following disclosures in bold text (§ 1026.6(b)(1)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ):
    1. Any APR required to be disclosed under § 1026.6(b)(2)(i); (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
    2. Any introductory rate permitted to be disclosed under § 1026.6(b)(2)(i)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) or required to be disclosed under § 1026.6(b)(2)(i)(F) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ;
    3. Any rate that will apply after a premium initial rate expires permitted to be disclosed under § 1026.6(b)(2)(i)(C) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) or required to be disclosed pursuant to § 1026.6(b)(2)(i)(F) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ; and
    4. Any fee or percentage amounts or maximum limits on fee amounts disclosed under §§ 1026.6(b)(2)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , 1026.6(b)(2)(iv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , 1026.6(b)(2)(vii)-(xii). (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
  4. Determine that bold text is not used for: The amount of any periodic fee disclosed under § 1026.6(b)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) that is not an annualized amount; and other annual percentage rates or fee amounts disclosed in the table. (§ 1026.6(b)(1)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  5. Determine that only the information required or permitted by §§ 1026.6(b)(2)(i)-(v) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (except for § 1026.6(b)(2)(i)(D)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) and 1026.6(b)(2)(vii)-(xiv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) are provided in the table. Disclosures required by §§ 1026.6 (b)(2)(i)(D)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , 1026.6(b)(2)(i)(D)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , 1026.6(b)(2)(vi) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) and 1026.6(b)(2)(xv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) must be placed directly below the table required by § 1026.6(b)(1). (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (§ 1026.6(b)(1)(ii)) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)

    NOTE: Disclosures required by §§ 1026.6(b)(3)-(5) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) that are not otherwise required to be in the table and other information may be presented with the account agreement or account-opening disclosure statement, if such information appears outside the required table.
  6. For credit unions that impose fees referred to in § 1026.6(b)(2)(vii)-(xi) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) that vary by state and that provide the disclosures required by § 1026.6(b) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) in person at the time the open-end (not home-secured) plan is established for financing the purchase of goods or services determine that the credit union discloses in the account-opening table either:
    1. The specific fee applicable to the consumer’s account, or
    2. The range of fees, a statement that the amount of the fee varies by state, and a reference to the account agreement or other disclosure provided with the account- opening table where the amount of the fee applicable to the consumer’s account is disclosed. (§ 1026.6(b)(1)(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )

      NOTE: A credit union is not permitted to list fees for multiple states in the account- opening summary table (§ 1026.6(b)(1)(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ).
    3. If the amount of any fee required to be disclosed under this section is determined on the basis of a percentage of another amount, the percentage used and the identification of the amount against which the percentage is applied may be disclosed instead of the amount of the fee. (§ 1026.6(b)(1)(iv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
  7. The following requirements apply to open-end (not home-secured). Determine that the credit union discloses in the appropriate format, as applicable:
    1. Annual percentage rate. Each periodic rate that the credit union may use to compute the finance charge on an outstanding balance for purchases, a cash advance, or a balance transfer, expressed as an APR. When more than one rate applies for a category of transactions, determine that the credit union discloses the range of balances to which each rate is applicable. Ensure that the APR for purchases disclosed under this paragraph is in at least 16-point type, except for a penalty rate that may apply upon the occurrence of one or more specific events. (§ 1026.6(b)(2)(i) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    2. Variable rate information. If the rate is a variable rate, determine that the credit union also disclosed the fact that the rate may vary and how the rate is determined (i.e., identify the type of index or formula used in setting the rate). (§ 1026.6(b)(2)(i)(A) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    3. Discounted initial rate. If the initial rate is an introductory rate, determine that the credit union disclosed that the rate would otherwise apply to the account. Where the rate is not tied to an index or formula, determine that the credit union disclosed the rate that will apply after the introductory rate expires. For a variable rate account, determine that the credit union disclosed a rate based on the applicable index or formula in accordance with the accuracy requirements. (§ 1026.6(b)(2)(i)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    4. Premium initial rate. If the initial rate is temporary and is higher than the rate that will apply after the temporary rate expires, determine that the credit union disclosed the premium initial rate. Determine that the premium rate for purchases is in at least 16- point type. (§ 1026.6(b)(2)(i)(C) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    5. Penalty rates. Except for introductory rates and employee preferential rates (discussed below), if the rate is a penalty rate, determine that the credit union disclosed as part of the APR disclosure the increased rate that may apply, a brief description of the event or events that may result in the increased rate, and a brief description of how long the increased rate will remain in effect. (§ 1026.6(b)(2)(i)(D)(1) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    6. Introductory rates. If the credit union discloses in the table an introductory rate, as that term is defined in § 1026.16(g)(2)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , determine that the credit union briefly disclosed directly beneath the table the circumstances under which the introductory rate may be revoked, and the rate that will apply after the introductory rate is revoked. (§ 1026.6(b)(2)(i)(D)(2) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    7. Employee preferential rates. If the credit union discloses in the table a preferential APR for which only employees of the credit union, employees of a third party, or other individuals with similar affiliations with the credit union or third party are eligible, determine that the credit union briefly disclosed directly beneath the table the circumstances under which the preferential rate may be revoked, and the rate that will apply after the preferential rate is revoked. (§ 1026.6(b)(2)(i)(D)(3) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    8. Point of sale where APRs vary by state or based on creditworthiness. If the credit union imposes an APR that varies by state or based on the consumer’s creditworthiness and provides required disclosures in person at the time the open-end (not home-secured) plan is established for financing the purchase of goods or services, determine that the credit union discloses either: (§ 1026.6(b)(2)(i)(E) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      1. The specific APR applicable to the consumer’s account, or
      2. The range of the APRs, if the disclosure includes a statement that the APR varies by state or will be determined based on the consumer’s creditworthiness and refers the consumer to the account agreement or other disclosure the credit union provided with the account-opening table where the credit union disclosures the AP applicable to the consumer’s account. Determine that the credit union does not list APRs for multiple states in the account opening table.
    9. Credit card accounts under an open-end (not home-secured) consumer credit plan. Determine that the issuer discloses in the table: (§ 1026.6(b)(2)(i)(F) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
      1. Any introductory rate, and
      2. Any rate that would apply upon expiration of a premium initial rate.
    10. Fees for issuance or availability. Determine that the credit union disclosed any annual or periodic fee that it may impose for the issuance or availability of an open-end plan (including any fee based on account activity or inactivity); how frequently it will impose the fee; and the annualized amount of the fee. (§ 1026.6(b)(2)(ii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    11. Fixed finance charge and minimum interest charge. Determine that the credit union disclosed any fixed finance charge and any minimum interest charge if it exceeds $1.00 that the credit union can impose during a billing cycle, and a brief description of the charge. (§ 1026.6(b)(2)(iii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    12. Non-periodic Fee. Determine that the credit union disclosed any non-periodic fee that relates to opening the plan. A credit union must disclose that the fee is a one-time fee. (§ 1026.6(b)(2)(ii)(B) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    13. Transaction charges. Determine that the credit union discloses any transaction charge the credit union imposes for use of the open-end plan for purchases. (§ 1026.6(b)(2)(iv) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    14. Grace period. The date by which or the period within which any credit extended may be repaid without incurring a finance charge due to a periodic interest rate and any conditions on the availability of the grace period. If the credit union does not provide a grace period, the credit union must disclose that fact. If the length of the grace period varies, the credit union may disclose the range of days, the minimum number of days, or the average number of the days in the grace period, if the disclosure is identified as a range, minimum, or average. In disclosing in the tabular format a grace period that applies to all features on the account, the credit union must use the phrase “How to Avoid Paying Interest” as the heading for the row describing the grace period. If a grace period is not offered on all features of the account, in disclosing this fact in the tabular format, the credit union must use the phrase “Paying Interest” as the heading for the row describing this fact. (§ 1026.6(b)(2)(v) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    15. Balance computation method. Determine that the credit union disclosed in the account opening disclosures the name of the balance computation method that is used to determine the balance on which the finance charge is computed for each feature, or an explanation of the method it used if it is not listed, along with a statement that an explanation of the methods required by section 1026.6(b)(4)(i)(D) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . In determining which balance computation method to disclose, the credit union must have assumed that the credit extended will not be repaid within any grace period. (§ 1026.6(b)(2)(vi) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    16. Cash advance fee. Determine that the credit union disclosed any fee it imposed for an extension of credit in the form of cash or its equivalent. (§ 1026.6(b)(2)(vii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    17. Late payment fee. Determine that the credit union disclosed any fee it imposed for a late payment. (§ 1026.6(b)(2)(viii) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    18. Over-the-limit fee. Determine that the credit union disclosed any fee it imposed for exceeding the credit limit. (§ 1026.6(b)(2)(ix) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
    19. Balance transfer fee. Determine that the credit union disclosed any fee it imposed to transfer a balance. (§