Compliance – Pro-Rated Tax Credit Disclosure: The LE does not have a line item for a pro-rated tax credit from the seller. Where should this be disclosed?
Answer: There is no specific guidance regarding the location of the pro-rated tax credit on the LE, as there is on the CD. This means it becomes a lender’s decision based on the best available information. A consensus from our compliance experts stated the following: The purpose of the LE is to present a true [...]