On August 20, Mr. and Mrs. Cleaver decided to buy a property from Mr. and Mrs. Ward for $105,000. On August 30, Mr. and Mrs. Cleaver obtained a loan commitment from OKAY National Bank for an $84,000 conventional loan at 5 percent for 30 years. The lender informs Mr. and Mrs. Cleaver that a $2,100 loan origination fee will be required to obtain the loan. The loan closing is to take place September 22. In addition, escrow accounts will be required for all prorated property taxes and hazard insurance; however, no mortgage insurance is necessary. The buyer will also pay a full year’s premium for hazard insurance to Rock of Gibraltar Insurance Company. A breakdown of expected settlement costs, provided by OKAY National Bank when Mr. and Mrs. Cleaver inspect the uniform settlement statement as required under RESPA on September 21, is as follows:

I. Transactions between buyer-borrower and third parties:

II. Transactions between seller and third parties:

III. Buyer-borrower and lender information:

IV. Buyer and seller information:

Required:
a. What are the amounts due from the borrower and due to the seller at closing?
b. What would be the disclosed annual percentage rate as required under the Truth-in-Lending Act?
c. When will the first regular monthly mortgage payment be due from the borrower?

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a. Recording fees-mortgage b. Real estate transfer tax c. Recording fees/document prep. d. Hazard insurance-one-year policy-Rock of Gibraltar Ins. Co. e. Peggy Prudent-attorney f. Inspections g. Title insurance fee (Landco Title Co.) h. Landco Title Co.-closing fee $30.00 225.00 200.00 420.00 150.00 50.00 400.00 125.00