2010 Itemization

View the Managing Loan Originator Compensation White Paper

View the "2010 RESPA Workflow" Quick Reference Guide

The 2010 Itemization form is a detailed estimate of closing costs and other charges that must be satisfied before the loan closes. Information entered on the 2010 Itemization is also used to populate the 2010 GFE form, which provides borrowers with a summary of estimated closing costs and other required disclosure information.

Your administrator can set a date when all new loans must use the 2015 Itemization and the accompanying Loan Estimate and Closing Disclosure forms. However, you can switch between these forms, the 2010 Itemization, GFE , and HUD-1, and the pre-2010 Itemization and HUD-1 if you have not yet sent your initial disclosure to the borrower. Click Forms on the Encompass menu bar, point to RESPA-TILA Form Version, and then click Old GFE and HUD-1, RESPA 2010 GFE and HUD-1, or RESPA-TILA 2015 LE and CD. To view the help topic for the 2015 Itemization form, refer to the 2015 Itemization help topic.

General Guidelines

Type the costs and fees assigned to the borrower, seller, or both. For a detailed description of how borrower and seller fees are disclosed, refer to Managing Split Fees.
If your administrator has created predefined fee descriptions for miscellaneous closing costs, select a description from the dropdown list. If your administrator has granted you permission, you can also type a description in the space provided.
The Truth In Lending requirements that went into effect on April 1, 2011 prohibit any person other than the borrower from paying compensation to a loan originator in a transaction where the borrower pays the originator directly. If your administrator has configured the LO Compensation Rule to govern a fee being paid to a broker in line 801, a green LO Compensation icon displays next to the fee line. The LO Compensation Violation message may display any time fees are set to be paid to the broker by both the borrower and someone else other than the borrower.
Use the checkboxes to specify the characteristics of the fee. Refer to the Paid Outside Closing (POC) and Paid Through Closing (PTC) topic for details about using the P checkbox to enter POC and PTC fees.
For calculated fields, the value is placed in the Borrower field. If you type a value in the associated Seller field, that amount is deducted from the Borrower value.
If the Address Book icon displays next to a field, click the icon to select the provider's name from your business contacts. Or type the name in the field and, optionally, right-click to add a new contact to your business contacts.
Use theEdit icons to open a calculator to determine the associated field value.

Section Information

Cost and Fee Designations

When you record costs and fees:

Type the amount of the fee in the Borrower or Seller columns (or both).
If the value in the Borrower column for lines 801 through 803 will be paid by someone other than the borrower, use the Paid By column to indicate who will pay the fee, Broker (B), Lender (L), or Other (O).
Select one or more checkboxes as appropriate in sections 800 through 1300.

P (Paid outside closing/Paid through closing) - When the P checkbox is selected, a pop-up window allows you to indicate how much of the fee is being paid outside closing (POC) or through closing (PTC).

B (Borrower select) - The borrower has opted to locate a provider for this service.

A (APR fees) - Borrower costs that are used to calculate the APR.

Use the Paid to column in sections 800 through 1300 to indicate to whom the fee will be paid.

B (Broker) - The fee is paid to the broker. The value is placed in the Paid To Broker column on the MLDS.

L (Lender) - The fee is paid to the lender (creditor).

S (Seller) - The fee is paid to the seller. The value is placed in the From GFE Seller column on the MLDS.

I (Investor) - The fee is paid to the investor.

A (Affiliate) - The fee is paid to an affiliate of the lender or the broker

O (Other) - The fee is paid to someone other than the broker, lender, seller or investor. The value is placed in the Paid To Others column on the MLDS.

Sections 700 through 1400

700

Fees paid for sales agent and real estate broker commissions, including the amount to be paid to each commission recipient and the commission amounts that will be paid by the borrower and seller.

800

The 800 section lists origination and processing charges, origination credits, and origination points.

Line 801

Line 801 contains the processing and administrative charges. If there are not enough lines to list all your fees, you can combine multiple fees on a single line. The total amount listed on the Our Origination Charge line will print on the GFE output form. Select the Itemize fees when print checkbox to print the itemized 801 fees on the Itemization of Amount Financed and Addendum to HUD Settlement Statement output forms.
The Truth In Lending requirements that went into effect on April 1, 2011 prohibit any person other than the borrower from paying compensation to a loan originator in a transaction where the borrower pays the originator directly. If your administrator has configured the LO Compensation Rule to govern a fee being paid to a broker, a green LO Compensation icon displays next to the fee line. The LO Compensation Violation message may display any time one of these fees are set to be paid to the broker by both the borrower and someone else other than the borrower. In other words, if one fee being paid to the broker is being paid by the borrower, then all other fees being paid to the broker must be paid by the borrower as well. Or, if one of these fees is being paid by someone other then the borrower, then all other fees paid to the broker must be paid by someone other than the borrower as well. If the LO Compensation Violation message displays, select Make all Paid by Borrower, Make all Paid by 3rd Party, or Take No Action to proceed. For detailed information, refer to the Managing Loan Originator Compensation white paper.
Broker Compensation - When documenting compensation payments to the broker using the Broker Compensation line, you can select the Use LO Comp Tool checkbox to pull applicable broker compensation data from the LO Compensation tool into the Broker Compensation fields.
When the Use LO Comp Tool checkbox is selected, the corresponding Broker Compensation fields in sections 801 and 802 are populated with the values from the Wholesale/Broker Plan Calculations section of the LO Compensation tool.
In certain circumstances, the compensation percentage and flat charge populated to the 2010 Itemization will not match the corresponding values in the LO Compensation tool. In order for the total compensation amount being paid to the broker to match on the 2010 Itemization (field ID NEWHUD.X225) and the LO Compensation tool (the total Net Adjustment Comp (field ID LCP.X14)), Encompass automatically adjusts the compensation percentage (field ID NEWHUD.X223) and flat charge (NEWHUD.X224) on the 2010 Itemization. When the adjusted compensation percentage and flat charge are added together, the total (field ID NEWHUD.X225) matches the total in the LO Compensation tool (field ID LCP.X14).
Circumstances when this adjustment may occur include when the compensation plan is based on the base loan amount (field ID 1109) instead of the Total Loan Amount (field ID 2) or when adjustment credits are entered in the LO Compensation tool. Also, since the percentage fields in the LO Compensation tool allow for five decimal places while the percentage fields on the 2010 Itemization allow for only three decimal places, the percentage amounts will be adjusted on the form accordingly.
Once these values are pulled into the 2010 Itemization (and the Use LO Comp Tool checkbox remains selected), they will be automatically synchronized with the corresponding values in the LO Compensation tool. If values are changed in the tool, the values in the 2010 Itemization fields will recalculate accordingly.
When the P checkbox is selected, a pop-up window allows you to indicate how much of the fee is being paid POC or PTC. You can also use this window to indicate that the amount of the fee paid by the borrower (full or partial) will be included in the APR calculation and to designate a fee as financed on the Itemization of Amount Financed output form. For more information about this pop-up window, refer to the Paid Outside Closing (POC) and Paid Through Closing (PTC) topic.

Line 802

Select the Specify the Adjusted Origination Charge Details checkbox in the line 802 section on the 2010 Itemization to enable the tool.

When you select the checkbox, any content in the 802 section of the 2010 Itemization is cleared and most of the fields, checkboxes, and dropdown lists on the 802 section will be disabled or will no longer display on the 2010 Itemization. You will be able to select these options in the Manage Adjusted Origination Charge Details tool. If you clear the checkbox, any content entered in the Manage Adjusted Origination Charge Details tool is cleared.
To open the tool, click the Manage Details button.
Use the Lender Paid Originator Compensation section to enter credits.
- Enter the percentage and amount (if needed) of Lender Compensation Credit to the broker in line a.
- Enter the percentage and amount (if needed) of any Origination Credit for the interest rate chosen to be paid by the lender in line b.
- Enter a description and amount for any user-defined credits in lines c and d.
  
  If the Use LO Comp Tool checkbox is selected in section 801, applicable broker compensation data from the LO Compensation tool is populated to the Lender Paid Originator Compensation fields.
Use the Origination/Discount Points Adjustments section to enter charges.
- Enter the Origination points on line e. Use the Seller column to enter the seller paid portion as needed.
- Select the Bona Fide checkbox to indicate that discount points entered in the Origination/Discount Point Adjustments section are bona fide discount points for the purposes of the Encompass Compliance Service’s applicable high cost review or GSE point and fees threshold review. Note that the Encompass Compliance Service is currently supported in Encompass Banker Edition only.
Seller fees are copied to line 802 (field NEWHUD.X788), but are not included in line 803 (field NEWHUD.X801) or 1400 (field NEWHUD.X278).
- Use the P and A checkboxes to indicate whether fees are Paid Outside Closing, Paid Through Closing or APR fees.
  - When the P checkbox is selected, a pop-up window allows you to indicate how much of the fee is being paid POC or PTC. You can also use this window to indicate that the amount of the fee paid by the borrower (full or partial) will be included in the APR calculation and to designate a fee as financed on the Itemization of Amount Financed output form. For more information about this pop-up window, refer to the Paid Outside Closing (POC) and Paid Through Closing (PTC) topic.
- Enter a description and amount for user-defined adjustments in lines f, g, and h.
Select the recipient and payer for each fee in the Paid by and Paid to columns.

In line a, the Paid by column is always paid by the Lender and the Paid to column is always paid to the broker.

When you finish entering credits and charges, the total credits display in the Total Credit for Rate Chosen field (NEWHUD.X1149) and the total charges display in the Total Charge for Rate Chosen field (NEWHUD.X1165). The smaller number is subtracted from the larger number to determine the final credit or charge, which displays in the Total Origination Credit/Charge field (NEWHUD.X1191).

If a buydown mortgage program is being used, the total buydown fund amount is included in the calculations on line 802 and the Origination Credit and Origination Points checkboxes will be disabled.

Line 803

Lines 804-835

900
Fees for items which the Lender requires to be paid at the time of settlement, but which are not necessarily paid to the lender (for example, FHA mortgage insurance premium for the upcoming year), other than reserves collected by the Lender and recorded in the 1000-series.

Under 2010 RESPA regulations, lines 902 and 905 are subject to tolerance limits for fees that cannot increase more than 10% after the GFE has been disclosed.
If the borrower has the option of selecting a provider for a service, a checkbox displays in the B (Borrower Select) column. If you select the checkbox to indicate that the borrower will select a provider, the fee is not subject to the tolerance limits for fees that cannot in total increase more than 10% after the GFE is disclosed.
When the P checkbox is selected, a pop-up window allows you to indicate how much of the fee is being paid POC or PTC. You can also use this window to indicate that the amount of the fee paid by the borrower (full or partial) will be included in the APR calculation and to designate a fee as financed on the Itemization of Amount Financed output form. For more information about this pop-up window, refer to the Paid Outside Closing (POC) and Paid Through Closing (PTC) topic.

1000
Amounts collected by the Lender from the Borrower and held in an account for the future payment of the obligations listed as they fall due. This may be referred to as an ''escrow'', ''impound'', or ''trust'' account. In addition to the property taxes and insurance, some Lenders may require reserves for flood insurance, condominium owners' association assessments, etc.

For lines 1002 through 1009, select the recipient and payer for each fee in the Paid by and Paid to columns. Encompass captures and identifies the recipients of fees for Escrow Impounds and these values are considered when making an ATR/QM and HOEPA points and fees assessment.
When the P checkbox is selected, a pop-up window allows you to indicate how much of the fee is being paid POC or PTC. You can also use this window to indicate that the amount of the fee paid by the borrower (full or partial) will be included in the APR calculation and to designate a fee as financed on the Itemization of Amount Financed output form. For more information about this pop-up window, refer to the Paid Outside Closing (POC) and Paid Through Closing (PTC) topic .

1100
Fees collected by the lender for title charges and charges by attorneys and closing or settlement agents, and then distributed to outside service providers. Select the recipient and payer for each fee in the Paid by and Paid to columns.

If there are not enough lines to enter all the fees, you can combine multiple fees on one line.

The fees in the 1100 section are subject to the tolerance limits for fees that cannot increase more than 10% after the GFE is disclosed.
If the borrower has the option of selecting a provider for a service, a checkbox displays in the B (Borrower Select) column. If you select the checkbox to indicate that the borrower will select a provider, the fee is not subject to the tolerance limits for fees that cannot in total increase more than 10% after the GFE is disclosed.
The itemized fees for line 1101 will print on the Itemization of Amount Financed and Addendum to HUD Settlement Statement output forms only if you select the Itemize fees when print checkbox at the bottom of line 1101.
On line 1102, click the Edit icon to open a pop-up window to enter itemized components of settlement or closing fees. For VA loans, you are allowed to enter fees only in the Escrow Fee field on the pop-up window.
When the P checkbox is selected, a pop-up window allows you to indicate how much of the fee is being paid POC or PTC. You can also use this window to indicate that the amount of the fee paid by the borrower (full or partial) will be included in the APR calculation and to designate a fee as financed on the Itemization of Amount Financed output form. For more information about this pop-up window, refer to the Paid Outside Closing (POC) and Paid Through Closing (PTC) topic.
On lines 1103 and 1104, when the A (Affiliate) option is selected from the Paid To dropdown list, the POC/PTC popup window opens. The window will display two entries at the bottom of the window:
A Paid To dropdown list that cannot be edited and is populated by default with A (Affiliate).
An Amount Retained by Affiliate $ field (field ID NEWHUD.X1724), where users can enter the amount of the fee retained by the affiliate.

1200
Fees collected by the lender for government recording and transfer charges, and then distributed to local and state agencies.

For lines 1202, 1204, and 1205, click an Edit icon to itemize an entry.
For lines 1206 through 1208, click a Find icon to select predefined formulas to calculate the associated field.
Line 1201 includes the total of line 1202 and 1206-1208, and is subject to tolerance limits for fees that cannot in total increase more than 10% after the GFE is disclosed.
For line 1203, click the Edit icon to manually edit the amounts for Transfer Taxes, City/County/Stamps, and State Tax/Stamps and change the total amount of transfer taxes applied to the 2010 GFE. Changing the Transfer Taxes total amount does not impact the associated values in the Borrower column on the 2010 Itemization.
Lines 1204-1205 displays taxes that cannot increase at all after the GFE has been disclosed.
When the P checkbox is selected, a pop-up window allows you to indicate how much of the fee is being paid POC or PTC. You can also use this window to indicate that the amount of the fee paid by the borrower (full or partial) will be included in the APR calculation and to designate a fee as financed on the Itemization of Amount Financed output form. For more information about this pop-up window, refer to the Paid Outside Closing (POC) and Paid Through Closing (PTC) topic.

1300
Charges and other miscellaneous fees not already recorded in sections 800 through 1200.

The total for all fees in this section are listed on line 1301 and are subject to tolerance limits for fees that cannot in total increase more than 10% after the GFE is disclosed.
Select the checkbox in the B (Borrower Select) column to indicate that the borrower will select a provider for any of the services in the 1300 section. If the borrower opts to select a provider, the fee is not included in line 1301 and is not subject to the tolerance limits.
When the P checkbox is selected, a pop-up window allows you to indicate how much of the fee is being paid POC or PTC. You can also use this window to indicate that the amount of the fee paid by the borrower (full or partial) will be included in the APR calculation and to designate a fee as financed on the Itemization of Amount Financed output form. For more information about this pop-up window, refer to the Paid Outside Closing (POC) and Paid Through Closing (PTC) topic.

1400

The total of all the estimated settlement charges for the borrower and seller. For detailed information about how these amounts are calculated, refer to Managing Split Fees.