# CLOSING DISCLOSURE REVIEW MEMO **[SYNTHETIC EXAMPLE — AI-generated; attorney review required before any downstream use]** | Field | Value | |---|---| | Matter | Vasquez purchase — 1414 Linden Ave, Austin, TX 78704 | | Role | Borrower's counsel (Vasquez) | | Lender | First Travis Bank, N.A. | | Settlement agent | Capitol Title Co. | | Loan type | Conventional 30-year fixed, purchase money | | Loan amount | $412,000 | | Sale price | $515,000 | | CD issue date | 2024-09-12 | | CD method of delivery | Electronic (with e-consent on file) | | Earliest consummation date | 2024-09-17 (3 business days; see Re-Disclosure below) | | Memo date | 2024-09-13 | --- ## I. Summary of Findings | Area | Finding | Action | |---|---|---| | Page completeness | All five pages present; one MISSING field (HOA dues, Page 4) | Capitol Title to confirm HOA estoppel value | | LE-CD tolerance | One zero-tolerance violation: recording fee $145 on LE → $235 on CD | Cure $90 to borrower; lender responsible | | Re-disclosure trigger | Not triggered (APR change 0.06%, fixed-rate threshold 0.125%) | Consummation 2024-09-17 OK | | State overlays (Texas) | Recording-fee structure verified; mineral rights reservation referenced; doc-stamp tax not applicable in TX | Confirm county recording fee schedule on closing day | | Cash-to-close | Reconciles to wire instructions and payoff letters | OK | --- ## II. Page-by-Page Status Following intake checklist in `references/CD-PAGES.md`. - **Page 1** — Loan terms, projected payments, costs at closing: complete and reconcile to LE. - **Page 2** — Loan costs, other costs, totals: complete with one tolerance variance (see Section III). - **Page 3** — Cash to close, transaction summaries: reconciles to wire instructions and payoff letter from existing-mortgage holder (Travis Heritage Mortgage Co., payoff $312,840.22 as of 2024-09-17). - **Page 4** — Loan disclosures and escrow: HOA dues field shows `MISSING`. The estoppel from Linden HOA is in the file but the estoppel value field on the CD is blank. **Action: Capitol Title to populate from estoppel before signing.** - **Page 5** — Loan calculations and contact info: complete; APR 6.541% recomputed and reconciles within 0.001% of disclosed value. --- ## III. LE–CD Tolerance Analysis Baseline LE: 2024-08-21 (most recent valid LE; no changed circumstance triggered a revision). | Tolerance bucket | LE total | CD total | Variance | Status | |---|---|---|---|---| | Zero tolerance | $4,892 | $4,982 | +$90 | **Violation — cure required** | | 10% cumulative | $1,640 | $1,712 | +$72 (+4.4%) | Pass | | Unlimited | $5,210 | $5,388 | +$178 | N/A — informational | ### Zero-tolerance violation detail The recording fee on the LE is $145; on the CD it is $235. Recording fees of this character (county clerk recording of the deed of trust, $145 of which is the customary Travis County recording-fee rate) sit in the zero-tolerance bucket because they were known at LE issuance. Per `closing-disclosure-tolerance` cure methodology and 12 CFR 1026.19(f)(2)(v) `[VERIFY]`: - **Cure amount: $90.** - **Method: principal reduction or borrower refund at consummation.** Lender's choice; document the chosen method on the corrected CD. - **Deadline: 60 calendar days after consummation.** No reason to delay; cure at or before the table. ### 10% cumulative test LE shoppable / 10% bucket: $1,640. CD: $1,712. Limit ($1,640 × 1.10) = $1,804. CD ≤ limit. **Pass.** ### Unlimited bucket Prepaids and escrows up $178. Within good-faith range; not actionable. --- ## IV. Re-Disclosure Trigger Analysis | Trigger | Threshold | Observed | Triggered? | |---|---|---|---| | APR increase | 0.125% (fixed) | 0.06% | No | | Loan product change | Any | None | No | | Prepayment penalty added | Any | Not added | No | **Re-disclosure not required.** Earliest consummation per `closing-disclosure-timing-reference` 3-business-day rule: - CD issued 2024-09-12 (Thursday). - Electronic delivery; e-consent on file → deemed received 2024-09-12. - 3 business days (excluding Sundays and federal holidays per Reg Z) → 2024-09-17 (Tuesday). **Earliest consummation: 2024-09-17.** --- ## V. State Overlays — Texas Per `references/STATE-OVERLAYS.md`: - **Recording fee structure.** Travis County recording fee verified at $145 customary; the CD reflects $235, which is the source of the zero-tolerance violation in Section III. Confirm with Capitol Title that the $235 is correct for this matter (additional pages, additional documents recorded?) — if it is correct, the LE was understated and the cure is owed; if it is wrong, the CD must be corrected before signing. - **Mineral rights reservation.** Deed (in title commitment package) reserves mineral rights to seller's predecessor in title; not a CD line but flagged for borrower awareness. - **Doc-stamp tax.** N/A in Texas. --- ## VI. Cross-Document Reconciliation Per `references/CD-PAGES.md`: | CD figure | Reconciled against | Result | |---|---|---| | Cash to close ($112,418.78) | Wire instructions from Capitol Title; borrower's funding source confirmation | OK | | Existing-mortgage payoff ($312,840.22) | Travis Heritage Mortgage Co. payoff letter dated 2024-09-09 | OK | | Recording fee ($235) | Travis County recording-fee schedule | **See Section V — verification pending** | | Escrow / prepaids ($5,388) | Insurance binder (Lemonade); 2024 tax bill (Travis CAD); HOA estoppel | Insurance and tax OK; HOA value is `MISSING` on CD (Section II Page 4) | | APR / TIP | Lender's truth-in-lending recomputation | OK within 0.001% | --- ## VII. Open Items | # | Item | Owner | Deadline | |---|---|---|---| | 1 | Populate HOA dues on Page 4 from Linden HOA estoppel | Capitol Title | Pre-signing 2024-09-17 | | 2 | Confirm $235 recording fee against county schedule | Capitol Title / lender | Pre-signing 2024-09-17 | | 3 | Cure $90 zero-tolerance variance via principal reduction or borrower refund | First Travis Bank | At consummation (or within 60 days post) | | 4 | Lender to issue corrected CD reflecting cure | First Travis Bank | At consummation | --- ## VIII. Required Action Borrower (Vasquez) **should not sign** the CD as currently issued. Capitol Title and First Travis Bank are to: 1. Resolve Open Items #1 and #2 above. 2. Issue a corrected CD reflecting the $90 cure and any recording-fee correction. 3. Re-send the corrected CD with appropriate delivery confirmation. If the only correction is the $90 cure (and recording fee is verified as correct at $235), no new 3-business-day waiting period is triggered (cure does not increase APR; product unchanged; no prepay penalty added). Capitol Title to confirm timing in writing. --- ## Disclaimer This memo is AI-generated from documents supplied to counsel. Every claim cites the source. No legal advice is given; this memo is attorney work-product input, not a substitute for attorney review. Statutory citations marked `[VERIFY]` require cite-checking before use in client communications.