Understanding Different Cash to Close Calculations

FNMA vs TRID Calculation Methods

FNMA Forms Calculation: - Uses the FNMA calculation method for cash to close - Includes all standard FNMA requirements and adjustments

TRID Rules Calculation: - Uses a different calculation method than FNMA - Does not count credits and other adjustments on the Closing Disclosure (CD) as being needed for cash to close

How Encompass Handles Calculations

The Encompass system intentionally uses different calculation methods depending on the screen:

• FNMA screens: Uses FNMA calculation method
• LE (Loan Estimate) or CD (Closing Disclosure) screens: Uses TRID calculation method

This allows lenders to reference the calculation that best suits their specific needs.

FundLoans Reserves Calculation Policy

For Refinances: - Uses the FNMA total calculation

For Purchases: - Uses the TRID calculation

General Recommendation

In most cases, use the cash to close from the CD calculation as the primary reference for determining required funds.