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On August $20,$ Mr$.$ and Mrs$.$ Cleaver decided to buy a property from Mr$.$ and Mrs$.$ Ward for $$111,000.$ On August $30,$ Mr$.$ and Mrs$.$ Cleaver obtained a loan commitment from OKAY National Bank for an $$85,200$ conventional loan at $5$ percent for $42$ years. The lender informs Mr$.$ and Mrs$.$ Cleaver that a $$2,220$ 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:

a$.$ Recording fees$-$mortgage

b$.$ Real estate transfer tax

c$.$ Recording fees$/$document preparation

d$.$ Hazard insurance$-$one$-$year policy$-$Rock of Gibraltar Insurance company e$.$ Peggy Prudent$-$attorney f$.$ Inspections g$.$ Title insurance fee $($Landco title Company$)$ h$.$ Landco title Company$-$Closing fee II$.$ Transactions between seller and third parties: a$.$ Release statement$-$seller's mortgage b$.$ Payoff$-$Seller's mortgage $($Home State Bank$)$ c$.$ Real estate brokerage fee $(6\%$ Fast Deal Realty$)$ III. Buyer$-$borrower and lender Information: a$.$ Amount of loan b$.$ Prepaid interest is owed from closing through september $30,$ which equals nine days $($inclusive$).$ Regular payments to begin on November $1.[0\mathrm{.}0585,200)365$

e$.$ Peggy Prudent$-$attorney

f$.$ Inspections

g$.$ Title insurance h$.$ Landco title Company$-$Closing fee I. Transactions between seller and third parties:

a$.$ Release statement$-$seller's mortgage

$5\mathrm{.}0032,775\mathrm{.}00$

$\backslash$table$[[$c$.$ Real estate brokerage fee $(6\%$ Fast Deal Realty$),32,775\mathrm{.}00$

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