Temporary Buydown Subsidies

In a temporary buydown, the effective interest rate that a borrower pays during the early years of the mortgage is reduced as a result of the deposit of a lump sum of money into an escrow account. Each month the lender receives the difference between the actual payment and the amount of the lower buydown payment from the escrow account.

Please refer to REMN Product Guidelines for allowable subsidies per product.

Step	Action
1	Go to the Loan Summary-->Short Application screen.
2	Select the applicable Subsidy Plan.
3	Select the applicable Subsidy Source.
4	Click Save.
5	Go to Loan Processing-->Fees & Closing Costs. The Buydown Payment subsidy will display in the Borrower Amount column regardless of the Subsidy Source selected.

Subsidy & Disclosures

After a loan is submitted, REMN will adjust the Buydown Payment subsidy to reflect the Subsidy Source.

Lender Subsidy

Loan Estimate (LE):

After Submission, the subsidy will reflect in Section H, with an offsetting Lender Credit in Section J.

Closing Disclosure (CD):

The subsidy will display in Section H in the Paid by Others column.

Listing/Selling Agent Subsidy

Loan Estimate (LE):

After Submission, the subsidy will reflect in Section H. with an offsetting Adjustment and Other Credit in the Calculating Cash to Close section.

Closing Disclosure (CD):

The subsidy will display in Section H in the Paid by Others column.

Seller Subsidy

Loan Estimate (LE):

After Submission, the subsidy will reflect in Section H with an offsetting Seller Credit in the Calculating Cash to Close section.

Closing Disclosure (CD):

The subsidy will display in Section H in the Paid by Others column.

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