Helpful tips for completing the Fee Details Form

Effective for Loans with RESPA application dates on and after January 10, 2014, Wells Fargo Funding will require a complete itemization of all points and fees, as well as key fee totals and certain summary data. We recommend Wells Fargo Fundings Fee Details Form as a best practice. Wells Fargo Funding Helpful tips for completing the Fee Details Form This document is provided to help Sellers complete the Fee Details Form for Loans that will be delivered to Wells Fargo Funding. These helpful tips are Reflective of Wells Fargo Fundings requirements for Loans delivered for purchase. Intended to assist you in properly completing the Fee Details Form for loans that will be delivered to Wells Fargo Funding for purchase. Other investors may or may not require certain data elements within the Fee Details Form or may define data elements differently. Not regulatory interpretation or legal advice. Arranged to mirror the flow of data elements on the Fee Details Form. General Tips for Completing the Fee Details Form The notes below are general tips for completing the Fee Details Form. Only provide data that is applicable to the subject loan. Not all data elements within Fee Details Form are applicable to all transactions. Fields that are not applicable to the subject transaction should be left blank (e.g., Total Fees Paid to Broker is not applicable to loans that are not brokeroriginated and should be left blank in these cases). Fees is used generally throughout the form to refer to charges described as points and fees in the various rules and regu lations. Refer to the following for assistance with regulatory terminology and definitions not provided herein: - Consumer Financial Protection Bureau (CFPB) High-Cost Mortgage and Homeownership Counseling Rule - CFPB Ability-To-Repay and Qualified Mortgage Rule - Regulation Z (Truth in Lending)

Fee Details Form

Steps to complete each field

1 2 3 Enter the primary borrowers last name. Enter the Wells Fargo Funding Loan number. This section is used to identify affiliates. Affiliates are defined by the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) as, Any company that controls, is controlled by, or is under common control with another company. Enter an X in the appropriate field (Yes or No) to indicate if fees were paid to an affiliate on this Loan. If question 4 above is yes, list the company name of each affiliate to which fees were paid on this Loan. Do not list affiliates that were not paid on this Loan.

4 5

Continued on next page 1

This information is for use by mortgage professionals only and should not be distributed to or used by consumers or other third-parties. Information is accurate as of date of printing and is subject to change without notice. Wells Fargo Funding is a division of Wells Fargo Bank, N.A. 2013 Wells Fargo Bank, N.A. All Rights Reserved. NMLSR ID 399801

Helpful tips for completing the Fee Details Form

Fee Details Form
6

Steps to complete each field

This section provides a description of the alphanumeric codes that should be used to identify parties paying and receiving fees on this Loan in the fee itemization sections of the form (sections 18 and 35). B = Borrower L = Lender BR = Broker A = Affiliate 3 = 3rd Party1 S = Seller (of the subject property)
1

Note: For purposes of fee itemization, the property seller is not considered a third party. Always use S to identify fees paid to/by the property seller. 7 8 9 10 11 12 This section is used to provide certain fee totals and other key fee data for the Loan. Enter the total fees paid to a broker, if applicable. Do not include broker fees paid outside of closing by borrower. Enter the total fees paid to the Lender. Do not include lender fees paid outside of closing by borrower. Enter the total fees paid to an affiliate(s), if applicable. Do not include affiliate fees paid outside of closing by borrower. Enter the total of all fees included in the APR that are paid outside of closing (POC) by the borrower. Enter the total of all fees paid with lender, broker, or seller credits. Do not include GFE/RESPA tolerance cures or TILA refunds. Do not include fees paid by a third-party (e.g., the borrowers employer, city, municipality, county, etc.).

Continued on next page

Helpful tips for completing the Fee Details Form

Fee Details Form Steps to complete each field
13 Enter the total prepayment penalty incurred by the consumer if the borrower is refinancing the existing mortgage loan with the current holder of the existing loan, a servicer acting on behalf of the current holder, or an affiliate of either, if applicable. Enter the totals of all fees included in (14) and excluded from (15) the calculation the lender performed to establish that the Loan is NOT high-cost and is a Qualified Mortgage (QM). Note: At this time, Wells Fargo Funding requires all discount points to be included in the fee total. This is the Total Loan Amount defined by section 1026.32 (4)(i) of Regulation Z. Generally, this involves taking the amount financed on the Loan and subtracting non-APR fees that are paid to an affiliate of the broker or lender. Clients should consult with their own legal and compliance teams to ensure they have the correct Total Loan Amount calculation and that it is captured here on the Fee Details Form. Fees Included in APR POC by Borrower Fees included in the APR that are paid outside of closing by the borrower must be considered in the Total Loan Amount calculation by subtracting them from the Loan Amount to determine the amount financed. Lender/Broker/Property Seller/3rd Party Credits Fees paid with credits do not reduce the Total Loan Amount, regardless of APR sensitivity. Enter the APR used in the calculation the lender performed to establish that the Loan is NOT high-cost. For Fixed Rate transactions: When determining the APR, use the interest rate from the Final Truth-in-Lending Disclosure (TIL). For ARMs: When determining the APR, use the higher of the initial rate or fully indexed rate (index plus margin) at the time the borrowers interest rate for the transaction is set. (This may be different than the APR reflected on the Final TIL.) Note: Wells Fargo Funding relies on the lenders determination of the time the borrowers interest rate for the transaction is set.

14 15

16

17

Continued on next page 3

Helpful tips for completing the Fee Details Form

Fee Details Form Steps to complete each field
18 This section is used to provide an itemization of broker compensation, discount points, and conventional upfront MI fees, if applicable. Enter the total dollar amount of all mortgage broker compensation attributable to the transaction at the time the borrowers interest rate for the transaction is set that is expected to be paid directly or indirectly by the consumer or creditor. Do not include compensation paid by a mortgage broker to a loan originator employee or paid by a lender to a loan originator employee. Notes: Not applicable to retail transactions. Broker compensation is applicable on broker-originated third-party originations (TPOs) only. Wells Fargo Funding relies on the lenders determination of the time the borrowers interest rate for the transaction is set. Indicate if the broker compensation is lender-paid or borrower-paid using the Paid By/Paid To Key (section 6). Enter the total dollar amount of all compensation paid to a mortgage broker according to the final HUD-1 (line 801 if borrower-paid; line 802 if lender-paid), if applicable. Do not include other lender/broker fees typically reflected in HUD-1 line 801 (e.g., underwriting, processing, rate lock fees, etc.). Notes: Not applicable to retail transactions. Broker compensation is applicable on broker-originated third-party originations (TPOs) only. Indicate if the broker compensation is lender-paid or borrower-paid using the Paid By/Paid To Key (section 6).

19

20 21

22

Continued on next page

Helpful tips for completing the Fee Details Form

Fee Details Form Steps to complete each field
23 Enter the number of bona fide discount points, if applicable. Note: At this time, Wells Fargo Funding requires all discount points to be included in the fee total. Enter the interest rate before discount points with all Loan-level pricing adjusters (LLPAs) included. Note: Use the available rate that is closest to par (100.00). Example: Par Rate = 7.25 LLPAs = 0.75 Discount Points = 1.00 Actual rate on Loan= 7.00 (par rate + LLPAs discount points) Fully Adjusted Par Rate = 8.00 (par rate + LLPAs) Enter the Average Prime Offer Rate at the time the borrowers interest rate for the transaction is set. Note: Wells Fargo Funding relies on the lenders determination of the time the borrowers interest rate for the transaction is set. Enter the dollar amount of bona fide discount points. Indicate who paid bona fide discount points using the Paid By/Paid To Key (section 6). Enter the dollar amount of bona fide discount points excluded from the calculation the lender performed to establish that the Loan is NOT high-cost and is a Qualified Mortgage (QM). Note: At this time, Wells Fargo Funding requires all discount points to be included in the fee total. Enter the dollar amount of bona fide discount points excluded from the calculation the lender performed to establish that the Loan is NOT high-cost according to the applicable states high-cost regulations. Note: At this time, Wells Fargo Funding requires all discount points to be included in the fee total.

24

25

26 27 28

29

Continued on next page

Helpful tips for completing the Fee Details Form

Fee Details Form Steps to complete each field
30 For conventional Loans with upfront MI, check this box if the upfront MI premium paid is refundable on a pro rata basis. For conventional Loans with upfront MI, if the policy is refundable (#30 is selected), enter the comparable FHA Mortgage Insurance Premium factor for this transaction as a percentage in effect at the time of account opening. Note: Wells Fargo Funding considers the date closing documents are notarized (closing date) to be the time of account opening. For conventional Loans with upfront MI, enter the dollar amount of the borrower-paid conventional upfront MI premium as reflected on the final HUD-1. Note: Required whether or not the premium is refundable. For conventional Loans with upfront MI, indicate who paid the conventional upfront MI premium using the Paid By/Paid To Key (section 6). For conventional Loans with upfront MI, If the policy is refundable (#30 is selected), enter the dollar amount of the conventional upfront MI premium that was excluded from the calculation the lender performed to establish that the Loan is NOT high-cost and is a Qualified Mortgage (QM). The lesser of the comparable FHA upfront MIP amount (Loan Amount X comparable FHA MIP factor) or the actual conventional mortgage insurance premium paid upfront can be excluded. Note: Not required for transactions with non-refundable upfront MI premiums.

31

32

33

34

Continued on next page

Helpful tips for completing the Fee Details Form

Fee Details Form Steps to complete each field
35 36 This section is used to provide an itemization of all fees included in the final HUD-1. This section is used to itemize any fees included in the final HUD-1 800 series. Note: Refer to Tips for Completing the Final HUD-1 Fees Itemization below when completing this section. Enter the final HUD-1 line number on which the fee is reflected. Enter the fee name. Enter an X to indicate if the fee or a portion of the fee was financed into the Loan Amount. Enter an X to indicate if the fee or a portion of the fee was included in the APR calculation. Enter an X to indicate if the fee or a portion of the fee was paid outside of closing. Enter the dollar amount of the fee. Indicate who paid the fee using the Paid By/Paid To Key (section 6). Indicate who the fee was paid to using the Paid By/Paid To Key (section 6). Enter the dollar amount of the individual fee that was excluded from the calculation the lender performed to establish that the Loan is NOT high-cost and is a Qualified Mortgage (QM). Enter the dollar amount of the individual fee that was excluded from the calculation the lender performed to establish that the Loan is NOT high-cost according to the applicable states high-cost regulations.

37 38 39 40

41 42 43 44 45

46

Continued on next page

Helpful tips for completing the Fee Details Form

Fee Details Form Steps to complete each field
47 51 These sections are used to itemize any fees included in the final HUD-1 900-1300 series. Note: Refer to Tips for Completing the Final HUD-1 Fees Itemization below when completing this section.

Helpful tips for completing the Fee Details Form

Tips for Completing the Final HUD-1 Fees Itemization (Section 35)
The notes below are general tips for using the Fee Details Form to itemize fees from the final HUD-1. Itemizing HUD-1 fees: Individual fees MUST be itemized in section 35 of the Fee Details Form even if they are NOT itemized on the final HUD-1. - However, DO NOT include in section 35 fees that have already been accounted for in the Other Fees Itemization (section 18). Refer to Example 1 below. - If there is more than one fee reflected in the total fee amount for a particular HUD-1 line number, DO NOT list the total amount in section 35. (If the total is included, the fees may be double counted and cause the Loan to fail points/fees.) The individual fees that make up the total should be listed separately using the same HUD Line #. Refer to Examples 1 and 2 below. Split fees: For split fees, the fee should be listed separately for each split indicating the various $ Amount and Paid By values and using the same HUD Line # and Fee Name. Refer to Example 3 below. Example 1: Itemizing Fees HUD-1 line 801 (Our origination charge) shows $300.00, representing the following individual fees: - $100 Processing Fee - $100 Underwriting Fee - $100 Borrower-paid broker compensation Enter the individual fees in the Other Fees Itemization (section 18) and HUD 800 Series Fee Itemization (section 36) of the Fee Details Form as follows (DO NOT include the $300.00 total amount in the Fee Details Form):

Note: The $100 borrower-paid broker compensation is not included in the HUD 800 Series Fee Itemization (section 36) because it has been accounted for in the Other Fees Itemization (section 18).

Helpful tips for completing the Fee Details Form

Example 2: Itemizing Fees HUD-1 line 1101 (Title services and lenders title insurance) shows $1050.00, representing the following individual fees: - Line 1102 $500.00 Settlement/Closing Fee - Line 1104 $300.00 Lenders Title Insurance - Line 1109 $50.00 Closing Protection Letter - Line 1110 $50.00 Wire Fee - Line 1111 $50.00 Courier Fee - Line 1112 $100.00 Title Search Enter the individual fees in the HUD 1100 Series Fee Itemization (section 49) of the Fee Details Form as follows:

Example 3: Split Fees HUD-1 line 804 shows a $400.00 Appraisal Fee with $100.00 in the borrower column and $300.00 in the seller column. Enter the split fees in the HUD 800 Series Fee Itemization (section 36) of the Fee Details Form as follows:

10