Origination ActivitiesQuestion 283 of 400
After the borrower reviews the initial Closing Disclosure, the seller agrees to pay an additional closing cost credit at the table. How should this be handled?
a.Update the Closing Disclosure to reflect the seller credit before consummation
b.Leave the disclosure unchanged and record it later informally
c.Skip disclosing the credit since it helps the borrower
d.Cancel the closing entirely
Explanation
Changes to the terms or costs, such as an added seller credit, must be reflected accurately on the Closing Disclosure so the figures match the actual transaction at consummation. Some changes require a corrected CD, but the transaction must be documented accurately, not left unchanged or undisclosed.
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