Managing Split Fees

By default, all fees entered on the 2010 Itemization form, including split fees (fees paid partially by the borrower and partially by the seller) are disclosed as borrower-paid fees on the GFE and the HUD-1 output form. When fees are entered in the Borrower or Seller column on the Itemization form, the total of the Borrower and Seller fields is populated in the GFE (Section #) column and is included as a borrower-paid fee on the GFE and the HUD-1 output form.

This help topic discusses managing split fees on the 2010 Itemization form. For loans that use the 2015 RESPA-TILA forms, split fees are managed on the 2015 Itemization form in the Fee Details window for each fee.

Seller-Intended Fees

In some states, it is customary or contractual for the seller to pay specified fees. These seller-intended fees must be disclosed as paid by the seller on the HUD-1 output form. To record a seller-intended fee (or the seller-intended portion of a split fee), enter an amount in the Seller column on the Itemization form and then clear the GFE (Section #) column.

The seller-paid amount will not be included on the GFE.
The seller-paid amount will display as a seller-paid fee on the HUD-1 output form.

Scenarios: In the table below, scenarios 1-3 show the default behavior for disclosing fees. Scenarios 4-6 show the behavior for fees when the GFE (Section#) column is cleared.

	Itemization Input			HUD-1 Output
	Borrower	Seller	GFE (Sec #)	Borrower	Seller
1	200	100	300	300
2	200		200	200
3		100	100	100
4	200	100		200	100
5	200			200
6		100			100

1400 Section of the HUD-1 Page 2

The 1400 section of the HUD-1 Page 2 contains two lines that show the calculations used for borrower-paid and seller-paid fees.

Total Estimated Settlement Charges - This line reflects the actual settlement charges paid by the borrower and seller as entered on the Itemization form and the HUD-1 Page 2 input form. The Borrower and Seller amounts also display in the 1400 section of the Itemization form.

The Borrower field includes the total of all settlement fees paid by the borrower, including the borrower portion of any split fees.
The Seller field includes the total of all settlement fees paid by the seller, including the seller portion of any split fees.

Total Estimated Settlement Charges Disclosed – This line reflects the amounts that are copied to line 1400 of the HUD-1 Page 2 output form.

The Borrower field includes the total of all borrower and seller fees from the Itemization form, except for seller-paid fees that have the GFE (Section #) column cleared.
The Seller field will include only fees in the Seller column that have the GFE (Section #) column cleared.

POC Charges

If the POC checkbox is selected:

Borrower-paid fees and the borrower-paid portion of split fees are not included in the Borrower fields in the 1400 section of the HUD-1 Page 2 or in the borrower transaction amounts on the HUD-1 Page 1 and GFE.
Seller-paid fees are included in the Seller field for the Total Estimated Settlement Charges (1400 section of the HUD-1 Page 2), and in the seller transaction amounts on the HUD-1 Page 1.
The seller-paid portion of split fees are included in the Borrower field for the Total Estimated Settlement Charges Disclosed (1400 section of the HUD-1 Page 2), and in the borrower transaction amounts listed on the HUD-1 Page 1.

If the POC checkbox is selected and the GFE Section # column is cleared, seller-paid fees and the seller-paid portion of split fees are included in:

The Seller fields in the 1400 section of the HUD-1 Page 2.
The Seller transaction amounts disclosed on the HUD-1 Page 1.

Migrated Loans

If an existing loan file has been migrated from an earlier versions of Encompass:

Existing entries and calculations on the Itemization, HUD-1, and GFE will not change.
If a line is edited, the new calculation method is applied only to the line that was edited.
Click the Copy Borrower column to GFE button to apply the new calculation method to all GFE entries.