Paid Outside Closing (POC) and Paid Through Closing (PTC)

Use the 2010 Itemization or 2015 Itemization form to record a non-seller-paid fee as paid outside closing (POC) or paid through closing (PTC). On the 2010 Itemization, use the POC/PTC pop-up window to indicate whether fees are POC or PTC, select full or partial payers for the fee, indicate whether a fee is included in the APR calculation, and mark the fee as Financed. On the 2015 Itemization, click the Fee Details icon for a fee to open the Fee Details window and indicate whether the fee is POC or PTC, select full or partial payers for the fee, indicate whether a fee is included in the APR calculation, and mark the fee as Financed.

Fees marked as Financed are included in the Estimated closing costs and Estimated prepaid items calculations in the Details of Transaction section of the 1003 Page 3, as well as in the Total of Financed Fees field (field ID NEWHUD.X1585) near the bottom of the 2010 or 2015 Itemization. The Financed checkbox is used by the Encompass Compliance Service or third-party compliance services such as ComplianceEase when running a state or federal high-cost loan test. If the checkbox is not used to indicated the fees that are being financed as part of the loan amount, the services will make assumptions on your behalf that could skew the test results.

Enter POC and PTC Fees - 2010 Itemization

Enter an amount for a fee in the Borrower column on the 2010 Itemization form.
Select the P checkbox for the entry.
A pop-up window enables users to indicate how much of the fee is being paid POC or PTC. The pop-up includes the information listed below:
- POC - The portion of the fee to be paid outside closing and the payer.
- PTC - The portion of the fee to be paid through closing and the payer.
- Borrower to Pay – The portion of the fee to be paid by the borrower, if any.
- Total – The total non-seller-paid fee.
If you selected a payer other than the borrower on the 2010 Itemization, the payer and the fee amount will populate by default on the PTC line.
To enter a POC amount, type the amount in the POC line.
To enter a PTC amount, type the amount in the PTC line.

If you edit the POC and PTC amounts, the POC, PTC, and Borrower to Pay fields adjust automatically. Changing the POC or PTC field will cause the Borrower to Pay field to be adjusted by the same amount. However, if the Borrower to Pay field equals zero, increasing the POC amount field will reduce the PTC amount field, and increasing the PTC amount field will reduce the POC amount field.
If no selection is made from the Paid By list on the 2010 Itemization, by default the borrower pays POC fees and the lender pays PTC fees. If another payer is paying the POC or PTC amounts, select the payer from the appropriate Paid By dropdown list.

PTC fees marked as paid by the Lender, Broker, or Other will be included on the Details of Transaction on the 1003 Page 3 in the Estimated closing costs (line f) or Estimated prepaid items (line e); and a credit for the same amount will be entered in the field for CC paid by Broker, Lender, Oth.
Select the APR checkbox to include the amount of the fee paid by the borrower (full or partial) in the APR calculation.
Select the Financed checkbox to identify a fee as financed on the Itemization of Amount Financed output form. Selecting the checkbox will not cause the fee to be added to the loan amount.

If the Table Funded Transaction checkbox (NEWHUD.X1068) at the top of the 2010 Itemization form has been selected, the broker-paid prepaid finance charges marked as Financed will be excluded from the APR.
When the A (Affiliate) option is selected from the Paid To dropdown list for lines 1103 and 1104 on the 2010 Itemization or the 2010 HUD-1 Page 2, use the Amount Retained by Affiliate $ field to record the portion of the title insurance fee retained by the affiliate.
When finished, click OK.

To display individual POC/PTC fee entries on the Itemization of Amount Financed output form, select the Itemize fees when printing checkbox at the bottom of the 801, 802, and 1101 sections on the 2010 Itemization form.

Enter POC and PTC Fees - 2015 Itemization

Enter an amount for a fee in the Borrower column on the 2015 Itemization form.
- The P checkbox (POC/PTC) for the entry is automatically selected when the fee amount is entered.
Click the Fee Details icon for the fee you entered.
The Fee Details window opens, enabling users to indicate how much of the fee is being Financed, PTC, PAC, and POC. The window includes the information listed below:
- Borrower Financed - The portion of the fee paid from the loan funds at closing by the borrower.
- Borrower PTC - The portion of the fee paid from the borrower's own funds as part of the closing process. This is a non-editable field calculated by taking the Total Fee Amount and subtracting the amounts in the Borrower Financed, Borrower POC, Seller Amount Paid, and Total Paid By B/L/O fields.
- PAC - The total portion of the fee to be paid at closing by the Borrower and/or Seller. The Borrower PAC and Seller PAC fields are non-editable fields calculated by adding the Borrower Financed and Borrower PTC amounts (Borrower PAC) and adding the amount of the fee being paid by the Seller and the Seller POC amount (Seller PAC).
- POC - The portion of the fee to be paid outside closing and the payer.
- Amount Paid – The total amount of the fee to be paid by the payer.
- Total Paid By B/L/O - The total portion of the fee paid by the Broker, Lender, and Other. This is a non-editable field calculated by adding the Broker Amount Paid, the Lender Amount Paid, and the Other Amount Paid.
- Total Fee Amount – The total of the Amount Paid entries for Borrower, Seller, Broker, Lender, and Other. This is a non-editable field calculated by adding the Borrower and Seller amount fields from the header section. This field also displays directly below the header section.
  
  If you selected a payer other than the Borrower on the 2015 Itemization, the payer and the fee amount will populate by default on the appropriate line in the Amount Paid by section of the window.
To enter a Borrower Financed amount, type the amount in the Financed field. This fee will be identified as financed on the Itemization of Amount Financed output form. Entering this fee in the Financed field will not cause the fee to be added to the loan amount.

If the Table Funded Transactions checkbox (NEWHUD.X1068) at the top of the 2015 Itemization form has been selected, the prepaid finance charge fees that are indicated as PTC by the broker will be excluded from the APR.
To enter a PAC amount paid by a Broker, Lender, or Other, type the amount in the applicable PAC field.
To enter a POC amount, type the amount in the applicable POC field.

PTC fees marked as paid by the Lender, Broker, or Other will be included on the Details of Transaction on the 1003 Page 3 in the Estimated closing costs (line f) or Estimated prepaid items (line e); and a credit for the same amount will be entered in the field for CC paid by Broker, Lender, Oth.
Select the Impacts APR checkbox to include the amount of the fee paid by the borrower (full or partial) in the APR calculation.
When the A (Affiliate) option is selected from the Paid To dropdown list for lines 1103 and 1104 on the 2015 Itemization use the Retained amt.field to record the portion of the title insurance fee retained by the affiliate.
When finished, click Close.

To display individual POC/PTC fee entries on the Itemization of Amount Financed output form, select the Itemize fees when printing checkbox at the bottom of the 801, 802, and 1101 sections on the 2015 Itemization form.

View POC and PTC Details

Clear a POC or PTC Fee