Manage Adjusted Origination Charge Details Tool (2010 Itemization Only)

White Paper: Managing Loan Originator Compensation

The Manage Adjusted Origination Charge Details tool provided on the 2010 Itemization input form allows users to disclose lender-paid loan originator compensation to brokers while staying compliant with both 2010 RESPA and Truth in Lending regulations. Use the Manage Adjusted Origination Charge Details tool when lender-paid broker compensation has been entered in line 801 of the 2010 itemization and the borrower is receiving credits or being charged points for the interest rate chosen.

Additionally, an Edit icon is provided in the line 802 section to enable users to see how the origination credits and origination points adjustment data is populated to the 2010 GFE. If the borrower is paying compensation directly to the broker, and there is only a credit or charge for the transaction, you have the option of adding the amount directly on line 802 of the 2010 Itemization or adding it in the Manage Adjusted Origination Charge Details tool.

The Manage Adjusted Origination Charge Details tool is provided with the 2010 Itemization form only. When using the 2015 Itemization form, all of the fields provided in the tool are provided directly on the form. Therefore you do not need to click the Manage Details button on line 802 to access the fields required to manage lender-paid broker compensation. For information about entering adjusted origination charge details in the Lender Paid Originator Compensation and Origination/Discount Point Adjustment sections of the 2015 Itemization, refer to the 2015 Itemization help topic.

To Use the Manage Adjusted Origination Charge Details Tool:

Select the Specify the Adjusted Origination Charge Details checkbox in the 802 section on the 2010 GFE 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 are disabled or 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.
To enter credits, use the Lender Paid Originator Compensation section.
- In line a, enter the percentage and amount (if needed) of Lender Compensation Credit .
- In the line b, enter the percentage and amount (if needed) of additional Origination Credit for the chosen interest rate.
- In lines c and d, enter a description and amount for any user-defined fees.
Use the Origination/Discount Points section to enter charges.
- In line e, enter the origination points. Use the Seller column to enter the seller paid portion as needed.
- Select the P or A checkbox to indicate whether fees are Paid Outside Closing or APR fees.
- In lines f, g, and h, enter a description and amount for any user-defined adjustments.
In the Paid by and Paid to columns, select the recipient and payer for each fee .

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).

To View Loan Originator Compensation Exported to the GFE:

On the 2010 GFE, click the Edit icon on line 802 to open the Quick Entry – Your Credits and Charges window to view how the loan officer compensation data will be exported to the 2010 GFE.

Changes to the editable fields on this window will be populated to the GFE, but they will not populate back to the 2010 Itemization.