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49

THE NEW CLOSING DISCLOSURE EXPLAINED

Page 1.

The first page of the Closing Disclosure is almost identical to Page 1 of the

Loan Estimate. It describes the:

Loan terms

Loan amount

Interest rate

Monthly P&I, and

Any prepayment penalty or balloon payment

This page also provides the projected payments over the life of the loan.

This page also discloses to the borrower what amounts will be deposited

into their impound or escrow account and provides the total estimated

closing costs and cash to close.

Page 2.

The second page is similar to the current Page 2 of the HUD-1 Settlement

Statement. It provides a breakdown of all the closing cost details and lists all

loan costs and other costs paid by borrower, seller, and other parties.