Credit Frequently Asked Questions

Information by State  Print version

	ADP codes
	ARMS/Qualifying rate
	CAIVRS
	Closing costs/fees
	Compensating factors
	Consumer Credit Counseling Program
	Credit denial
	Down payment
	Documentation requirements
	Earnest money
	Home inspections fees
	LDP/GSA
	Lender approval
	Lender transfers
	Automated Underwriting System (AUS)
	Loan-to-value ratios
	Mortgage insurance premiums (MIP)
	Mortgage limits
	Non-purchasing spouses
	Premium pricing
	Principal residences
	Principal reductions
	Refinances
	Secondary financing
	Sweat equity
	Tax credits

ADP Codes

Question 1: Since most loans now require only 3% down, are the ADP Codes 748 and 749 for loans with values/sales prices equal to or less than $50,000 still applicable?

Answer: These ADP Codes are still active. We suggest that lenders use 703; however, if lenders wish to identify properties with values less than $50,000 by using these codes, they may do so. Reminder: These codes are not applicable on refinance transactions.

ARMS/Qualifying Rate

Question 2: If we are processing an ARM with a LTV of 94.96%, do we round the LTV up to 95% and qualify the borrower at 1% above the note rate?

Answer: No!  You do not round the LTV up!

CAIVRS

Question 3: How should we proceed if CAIVRS indicates a default or claim against our borrower(s)?

Answer: See HOC Reference Guide - Chapter 2, Pages 2-9.
NOTE: Lenders should not refer borrowers to the HOC for information about the default or claim.

Question 4: How can I obtain a clear CAIVRS?

Answer: See HOC Reference Guide - Chapter 2, Page 2-9.

Question 5: What if the default or claim is regarding another Federal debt, such as, VA Guaranteed Mortgage, Title I Loan, Federal Student Loan, Small Business Administration Loan, Delinquent Federal Taxes, etc.?

Answer: See HOC Reference Guide - Chapter 2, Page 2-9.

Question 6: How long does this remain in CAIVRS after the claim is paid?

Answer: It remains in the system for 38 months after the claim is paid; however, 36 months after the claim is paid the borrower(s) are eligible for a new loan. Reference HUD Handbook 4155.1 REV-5, Paragraph 2-5.C.

Question 7: Am I required to check CAIVRS on streamline refinance transactions?

Answer: No. Reference HUD Handbook 4155.1 REV-5, Paragraph 2-5 C.

 Closing Costs/Fees

Question 8: Can commitment fees, discount points, or premium pricing be used to pay borrower’s UNALLOWABLE charges?

Answer: As of January 27, 2006, mortgagees may charge and collect from mortgagors those customary and reasonable costs necessary to close the mortgage. See HOC Reference Guide - Chapter 2, page 2-15.

Question 9: Can the borrower pay the fee charged by providers of automated income and employment verification systems for telephone employment verifications?

Answer: See HOC Reference Guide - Chapter 2, Page 2-15.

Compensating Factors

Question 10: What does HUD consider as compensating factors?

Answer: Reference HUD Handbook 4155.1 REV-5, Paragraph 2-13.

Question 11: Where should compensating factors be addressed on the 9200-WS/PUR (MCAW)?

Answer: Reference HUD Handbook 4155.1 REV-5, Paragraph 2-13.
NOTE: Items in Block 17 of the 92900-WS PUR are not to be considered as compensating factors as these are already addressed as part of the loan approval or rejection.

Consumer Credit Counseling Program

Question 12: How long should a borrower be in a Consumer Credit Counseling Program before we can consider them for an FHA-insured mortgage?

Answer: Typically, we view these situations as we would a borrower in a Chapter 13 Bankruptcy. If the borrower has been paying at least twelve months satisfactorily and the counselor recommends the borrower as a good credit risk, the borrower may be acceptable. Since some creditors may still report the borrower as delinquent, even though they have agreed to accept a lesser payment, this must be considered in the analysis of the borrower's overall credit. These cases should be analyzed on a case-by-case basis. It is a judgment call on the part of the underwriter after analyzing all the factors. Reference HUD Handbook 4155.1 REV-5, Paragraph 2-3. F.

Credit Denial

Question 13: If I deny a borrower credit, must I notify HUD?

Answer: Effective September 24, 2001, an enhancement was made to FHA Connection allowing the lenders to enter Mortgage Credit Reject information instead of submitting copies of the worksheets to HUD. Entry of this information is acceptable for all Direct Endorsement cases except Direct Endorsement Home Equity Conversion Mortgage (HECM) cases. This enhancement allows lenders to view, add, update or delete a borrower that presents a credit risk and is ineligible for a mortgage.

Question 14: Does the credit denial procedure apply for streamline refinances?

Answer: Yes, all loans.

Documentation Requirements

Question 15: Can verification forms such as VOEs, VODs, etc. be hand delivered by a third party?

Answer: No, verifications must pass directly between the lender and provider without being handled by any third party. So as not to delay mortgage closings, verifications may also be transmitted by facsimile machine. However, the lender’s file must contain the original verification form that was mailed to and returned from the employer, creditor, or financial institution. Reference HUD Handbook 4155.1 REV-5, Paragraph 3-1.

Down Payment

Question 16: When was the new down payment calculation effective?

Answer: Applications signed December 21, 1998 or later. (Reference Mortgagee Letter 98-29.)

Question 17: When is use of the new 92900-PUR mandatory?

Answer: March 22, 1999 (Reference Mortgagee Letter 98-31. )

Question 18: How does the new down payment calculation affect Energy Efficient Mortgages (EEMs)?

Answer: The 3 percent minimum investment must be met on mortgages calculated using the EEM mortgage. The cost of the energy package is still added (100%) to the approved base loan amount prior to adding Upfront MIP. Reference HUD Handbook 4155.1 REV-5, Paragraph 2-20 and Mortgagee Letter 98-29.

Question 19: How are required repairs paid by the borrower treated under the new down payment calculation?

Answer: If the borrower is paying for the required repairs, the contract sales price on the 92900-PUR should reflect the amount of the repairs. For instance, if the repairs are $500 on a $100,000 sale, the contract sales price on line 10a of the 92900-PUR should show $100,500. Line 11b. should also reflect the repair amount of $500.

Question 20: How does the new down payment calculation affect loans for individuals with Veterans status?

Answer: Please refer to Mortgagee Letter 2004-24.

Question 21: How does the new down payment calculation affect REO properties?

Answer: Loan amounts for REO properties will be calculated according to the new down payment calculation in Mortgagee Letter 98-29 and 00-27.

Question 22: How does the new down payment calculation affect Identity of Interest (IOI) transactions, which do not meet the circumstances for maximum financing?

Answer: Identity-of-interest transactions are limited to a maximum loan-to-value ratio of 85 percent, unless they meet one of circumstances described in HUD Handbook 4155.1 REV-5, Paragraph 1-8; Mortgagee Letter 98-29.

Question 23: How do you determine if the borrower has met the 3% statutory investment?

Answer: 1. Determine if the loan was based on a straight 97% of sales price/value. These would be situations where the borrower is not paying any closing costs. Since closing cost changes will not affect the loan, the borrower should have met the required investment.
2. If the loan was based on the maximum LTV factor and the 92900-PUR reflects the borrower is paying closing costs, compare the actual allowable closing costs the borrower paid from the HUD-1 with the closing costs used on the 92900-PUR, 10b.

1. If the actual costs are the same or more, the borrower has met the required 3% investment.
2. If the actual costs are less, use the actual costs and recalculate the loan amount, the MIP to obtain a corrective total loan amount. This corrected total loan amount is then deducted from the closed loan amount to determine the amount of the principal reduction required.

NOTE: There is no more $250 leeway in closing costs except on refinance transactions.

Question 24: When calculating the borrower’s three percent statutory investment, if the amount has odd cents equal to $.50 or higher, should we round to the next higher dollar?

Answer: No.

Earnest Money

Question 25: When must the deposit and source of funds for earnest money be documented?

Answer: When the deposit exceeds 2% of the sale price or appears excessive based upon the borrower’s history of accumulating savings.  Reference HUD Handbook 4155.1 REV-5, Paragraph 2-10 A.

Home Inspection Fee

Question 26: Can the fee for home inspections be considered as a required repair and included in the mortgage?

Answer: No, the borrower must pay in cash.  It can be used, as is closing costs, to satisfy the 3% statutory investment.  Reference Mortgage Letter 88-16.

Lender Approval

Question 27: How do I obtain FHA approval to originate loans?

Answer: See HOC Reference Guide - Chapter 3, Page 3-5. Also, link to How to become a HUD - Approved Lender.

Question 28: How can I originate loans in other areas?

Answer: The Department has now provided for an overall expansion of lending areas, which will be composed of all of the HUD field office jurisdictions within groups of States. Refer to Mortgagee Letter 2005-40 for the expanded lending areas.

Question 29: How do I obtain Direct Endorsement Approval?

Answer: See HOC Reference Guide - Chapter 3, Page 3-5.

Question 30: How do I get Direct Endorsement Approval for my underwriter?

Answer: FHA will no longer approve individuals effective February 26, 1996. The approval process previously employed has been replaced by a DE Registry. (Refer to Mortgagee Letter 96-10) It is the lender's responsibility to ensure that the underwriter meets HUD guidelines. Reference HUD Handbook 4000.4 REV-1, Paragraph 2-4

Question 31: How does my underwriter obtain a CHUMS ID Number?

Answer: Lenders may add, update or delete information in the underwriter registry through FHA Connection. Reference to Mortgagee Letter 96-10

Question 32: What functions can a lender contract out?

Answer: There are certain loan origination functions that do not materially affect underwriting decisions, which may be contracted out by mortgagees without increasing the risk to FHA. The types of functions that may be contracted out are: clerical assistance, preparation of loan documents, mailing out and collecting verification forms, ordering credit reports, preparing for endorsements and shipping loans to investors. The Department may approve such other functions.

NOTE: Underwriting and customary loan officer functions may not be contracted out! Reference Mortgagee Letter 95-36

Question 33: I have received a solicitation from a lender regarding an FHA program. How do I know this is an FHA-approved lender?

Answer: See HUD Approved Lender.

LDP/GSA:

Question 34: Am I required to check the LDP/GSA lists on streamline refinance transaction?

Answer: Yes, you are required to check these lists on all transactions.

 Lender Transfers

Question 35: What do I do if another lender refuses to transfer a case to me? Can I get another case number and appraisal?

Answer: See HOC Reference Guide - Chapter 2, Page 2-17, and 4000.2, REV-3, Paragraph 4-2 and 4000.4, Paragraph 1-16.

Question 36: What compensation can the transferring lender expect to receive?

Answer: Reference HUD Handbook 4000.2 REV-3, Chapter 4, which outlines HUD's current position on lender transfers.

NOTE: That the borrower can pay a maximum origination fee of one percent in obtaining a FHA-insured mortgage.

Automated Underwriting System (AUS)

Question 37: Can an AUS fee be charged to the borrower?

Answer: The lenders may charge a credit report fee in addition to the AUS fee in certain circumstances. If an updated report is required after the scoring of the loan in TOTAL, the borrower(s) may be charged for the additional report required.

Question 38: What, if any, documentation is required to show a loan was
approved via an AUS?

Answer: See Reference Guide - Chapter 2, Page 2-14.

Loan-to-Value Ratios

Question 39: Which loan-to-value ratio do we use when determining the length of time that a borrower will be required to pay monthly Mortgage Insurance Premiums (MIP)?

Answer: The applicable loan-to-value ratio would determine the length of time the borrower would be required to pay monthly Mortgage Insurance Premiums (MIP). Reference Mortgagee Letter 00-38 and 00-46.

Note: Currently, CHUMS and the FHA Connection are calculating the loan-to-value ratio using the base loan amount divided by the appraised value. The systems have been modified to notify lenders when the loan balance at which the 78% threshold, excluding the Upfront MIP, in which it would be eligible for the cancellation of the annual MIP. The required loan balance data will be available to lenders via the Case Query Screen located in the FHA Connection Single Family Origination section and the Portfolio and Advance Notice.

Mortgage Insurance Premiums (MIP)

Question 40: What is MIP?

Answer: Through its FHA Single Family Insurance Programs, HUD provides insurance for mortgages placed by private lenders and is designed to encourage lenders to make credit available in areas and to borrowers who may not otherwise qualify for conventional loans on affordable terms. FHA's role is essentially that of an insurance company. All borrowers must pay a mortgage insurance premium (MIP) to offset the insurance risk involved.

Question 41: How long will the borrower be expected to pay this premium?

Answer: The borrower is required to pay an upfront MIP and a monthly MIP, for a specific number of years, based on the LTV calculated at time of underwriting. Borrowers are now required to pay an upfront MIP and monthly MIP on all condominiums and 203(k) loans. Reference Mortgagee Letter 00-38, 00-46, and 05-38.

Question 42: At what point, or LTV percentage, can the MIP be terminated?

Answer: On loans closed on or after January 1, 2001, MIP will be terminated for mortgages with a term more than 15 years, provided the MIP has been paid for at least 5 years and have an LTV less than or equal to 78%; or for mortgages with a term 15 years and less serviced, in which the LTV ratios are 90% and greater and the LTV ratio is less than or equal to 78% and the MIP has been paid for at least 5 years. Mortgages with a term 15 years and less serviced and with a LTV ratio of 89.99% and less will not be charged annual MIP. Reference Mortgagee Letter 00-38 and 00-46.

Question 43: When is a 3.8% MIP factor used?

Answer: On streamline refinance transactions (either with or without an appraisal) where the most recent FHA-insured loan was closed prior to 7/1/91. (Refer to the table attachment in Mortgagee Letter 97-37)

Question 44: How does a borrower obtain information about MIP refunds?

Answer: They can call 1 800 697-6967 for information.

Mortgage Limits

Question 45: Where can I find the FHA mortgage limits?

Answer: See Mortgage Limits page.

Question 46: A borrower wants to purchase a property where the rear part of the lot is located in one county, and the remaining property is located in another county.  Which mortgage limit prevails?

Answer: The county limit is determined by the property address.

Question 47: What is the new website for the maximum mortgage limits?

Answer: https://entp.hud.gov/idapp/html/hicostlook.cfm

Non-Purchasing Spouses

Question 48: Can a non-purchasing spouse be added to title at closing?

Answer: ONLY if required by state law in order to perfect a valid and enforceable first lien. In some states, the non-purchasing spouse may be required to either sign the security instruments or documentation evidencing that he or she is relinquishing all rights to the property. Reference HUD Handbook 4155.1 REV-5, Paragraph 2-2. D.

Premium Pricing

Question 49: Can premium pricing be used to pay such things as down payment, collections and judgments?

Answer: See HOC Reference Guide - Chapter 2, Page 2-6, HUD Handbook 4155.1 REV-5, Paragraph 1-9. J.; Mortgagee Letters 94-7 and 97-26.

Principal Reductions

Question 50: If I discover the loan we closed is over-insured, how do I calculate the principal reduction?

Answer: Recalculate the base loan amount and the UFMIP to determine the new loan amount. This amount should be subtracted from the closed loan amount to reduce the principal.

Principal Residences

Question 51: If my principal residence is currently covered by an FHA-insured mortgage, can I purchase another principal residence with an FHA-insured mortgage?

Answer: Only under the following situations described below:

a) Relocation - Relocating to another area not within a reasonable commuting distance from the current principal residence. There is no need to reduce the principal balance. Reference to HUD Handbook 4155.1 REV-5, Paragraph 1-2. A.

b) Increase in Family Size AND the outstanding mortgage balance on the present property is paid down to 75 percent or less LTV exclusive of any financed MIP.

1 - A current residential appraisal must be used to determine LTV compliance.
2 - The borrower must provide satisfactory evidence of the increase in dependents and how the property no longer meet the family needs.See Reference Guide - Chapter 2, Page 2-02.

c) Vacating a jointly owned property; Please Note: Situation cited in HUD Handbook 4155.1 REV-5, Paragraph 1-2. C. is only meant to be one example of an acceptable situation.

d) Non-occupying co-borrower; On a case-by-case basis, a relative could be a non-occupying co-borrower on more than one FHA-insured property. For example, Mom and Dad are non-occupying co-borrowers on both son and daughter's FHA-insured mortgages. Reference to HUD Handbook 4155.1 REV-5, Paragraph 1-2. D.

Refinances

For all refinances, the case binder must include the payoff statements and the calculations used for the Mortgage Credit Analysis Worksheet. Also, submit the refinance cost breakdown form or a similar form that identifies payoff and closing costs used to calculate the loan amount. The maximum (statutory) mortgage limit cannot be exceeded.

Question 52: What is the calculation for a streamline refinance with an appraisal?

Answer: The new loan amount (before adding UFMIP) cannot exceed the lesser of:

• Multiply the appraised value (excluding closing costs) by the appropriate loan-to-value factor for the property value and the state in which it is located. 4155.1 REV-5, Appendix II
  
  
• · The sum of the allowable payoff amount* (from data on the payoff statement) for the existing FHA insured first lien, closing costs, reasonable discount points and the prepaid expenses necessary to establish the escrow account, and subtract any refund of upfront mortgage insurance premiums (UFMIP). The existing first lien may include the interest charged by the servicing lender when the payoff is not received on the first day of the month as is typically assessed on FHA mortgages, but may not include delinquent interest.

• The insured FHA mortgage amount (which includes financed UFMIP) of the loan being refinanced. This amount should be taken from the Refinance Netting Authorization.
  
  
• The sum of the allowable payoff amount* (from data on the payoff statement) for the existing FHA insured first lien, closing costs, reasonable discount points and the prepaid expenses necessary to establish the escrow account, and subtract any refund of upfront mortgage insurance premiums (UFMIP). The existing first lien may include the interest charged by the servicing lender when the payoff is not received on the first day of the month as is typically assessed on FHA mortgages, but may not include delinquent interest.
  
  
• Allowable Payoff Amount is the sum of: Unpaid Principal Balance PLUS total interest due PLUS late fees, escrow shortages and pre-payment penalty (if applicable) MINUS remaining buydown funds (if applicable).
  
  
• This will allow those homeowners who have paid down additional principal or whose mortgages have otherwise amortized sufficiently to add some or all of the closing costs to the new mortgage. This will reduce the amount of cash required at closing.

Answer: The new loan amount (before adding UFMIP) cannot exceed the lesser of:

• Multiply the appraised value (excluding closing costs) by the appropriate loan-to-value factor for the property value and the state in which it is located. [4155.1 REV- 5, Appendix II]
  
  
• The sum of the allowable payoff amount* (from data on the payoff statements) for each lien (first lien, any purchase money second mortgages, junior liens over 12 months old), closing costs, reasonable discount points, the prepaid expenses necessary to establish the escrow account, borrower paid repairs required by the appraisal, and any property related liens minus any refund of UFMIP. Delinquent interest may not be financed into the new loan. Second/junior liens of less than 12 months may not be included without documenting that the criteria in Paragraph 1-11 A. 2. of 4155.1 REV-5 has been met.

* Allowable Payoff Amount is the sum of: Unpaid Principal Balance PLUS total interest due PLUS late fees, escrow shortages and pre-payment penalty (if applicable) MINUS remaining buydown funds (if applicable).

NOTE: Subordinate liens, including credit lines, regardless of when taken, may remain outstanding provided the insured mortgage meets the eligibility criteria for mortgages with secondary financing as described in HUD Handbook 4155.1 REV-5, Paragraph 1-13.**Please Note: The underwriter is responsible for evaluating the borrower's overall credit including any liens and/or derogatory credit.

Question 55: What is the calculation for a cash-out refinance?

Answer: In addition to the 85% CLTV of the appraised value, FHA will insure a cash-out refinance of up to 95% of the appraiser's estimate of value based on the eligibility conditions that must be met. Reference HUD Handbook 4155.1 REV-5, Paragraph 1-11 B and Mortgagee Letter 05-43.

NOTE: The property must have been owned one year and owner occupied.

Question 56: Can prepaids be included in the calculation for both no-cash out refinances and streamline refinances with an appraisal? How much?

Answer: See Mortgagee Letter 01-12, and 4155.1 REV-5, Paragraphs 1-11 A. 2 and 1-12 B.

Question 57: Can liens be subordinated on streamline refinances?

Answer: Subordinate financing may remain in place without regard to the total indebtedness against the property on streamline refinances, with or without appraisals. Reference HUD Handbook 4155.1 REV-5, Paragraph 1-12. D. 11.

Question 58: On no-cash out refinances?

Answer: Subordinate liens, including credit lines, regardless of when taken, may remain outstanding provided the insured mortgage meets the eligibility criteria for mortgages with secondary financing as described in HUD Handbook 4155.1 REV-5, Paragraph 1-13. See Question No. 1 under "Secondary Financing".

Question 59: On Cash out refinances?
Answer: Yes, as long as the new base mortgage plus the subordinated lien (combined LTV) does not exceed 95 percent of the appraised value.

Question 60: Does the $50 increase in mortgage payments apply to ARMs refinanced to fixed -rate mortgages?

Answer: No! The $50 latitude applies only when a principal residence is refinanced to a shorter term mortgage. Reference HUD Handbook 4155.1 REV-5, Paragraph 1-12. D. 5.

Note: In light of the increase in mortgage amounts over the past several years, the applicable latitude has been increased to no more than 20 percent. See Mortgagee Letter 2005-43.

Question 61: Can individuals be added to title on streamline refinances?

Answer: New individuals may be added to title on a streamline refinances without credit worthiness review and without triggering due-on-sale clauses. Reference HUD Handbook 4155.1 REV-5, Paragraph 1-12 D. 9.; Mortgagee Letter 94-7

Question 62: Under what circumstances can individuals be deleted from title on streamline refinances?

Answer: Individuals can be deleted from the title on a streamline refinance only under the circumstances described in paragraph 1-12 C of 4155.1 REV-5, or:

a) When an assumption of a mortgage not containing a due-on-sale clause occurred more than six months previously and the assumptor can document that he or she has made the mortgage payments during this interim period; or

b) Following an assumption of a mortgage in which the transferability restriction (due-on-sale clause) was not triggered, such as in a property transfer resulting from a divorce decree or by devise or descent, and the assumption or quit-claim of interest occurred more than six months previously and the remaining owner-occupant can demonstrate that he or she has made the mortgage payments during this time.

[4155.1 REV-5, Paragraph 1-12 D.9]

Question 63: Can an investor reduce his term on a streamline refinance transaction without an appraisal?  The proposed P&I payment would increase, but would remain within the $50 limit; is this acceptable?

Answer: The investor may refinance for a shorter term; however, the P&I must be reduced.

Note: Investors can only refinance the unpaid principal balance.

[4155.1 REV-5, Paragraph 1-12 D.5] The $50 latitude is not available for mortgages on investment property.

Question 64: Can a borrower refinance a conventional loan to an FHA loan on a property with delinquent taxes, and that lien is now in a first lien position?

Answer: The delinquent taxes could be included in the determination of the loan amount since they are property related; however, the circumstances surrounding the sale of the property for non-payment of taxes must be addressed when reviewing the borrowers credit history.  The non-payment of taxes must have been due to extenuating circumstances beyond the borrowers control.

Secondary Financing

Question 65: Can the sum of all financing exceed 100 percent LTV?

Answer:

1. The FHA-insured first mortgage, when combined with any second mortgage or other junior liens from government agencies may not result in cash back to the borrower. The sum of all liens cannot exceed 100 percent of the cost to acquire the property. The cost to acquire is the sales price plus allowable borrower-paid closing costs, discount points, repair and rehabilitation expenses, and prepaid expenses. The cost to acquire may exceed the appraised value of the property under these types of government assistance programs. The FHA insured first mortgage cannot exceed the FHA statutory limit for the area where the property is located. The combined indebtedness, however, may exceed the FHA statutory limit.

2. If provided by other organizations and private individuals, the combined amounts of the first and second mortgages cannot exceed the applicable loan-to-value (LTV) ratio. (Maximum LTV for the state and property value, per Appendix II of Handbook 4155.1 REV-5.)

[Handbook 4155 REV-5, Paragraph 1-13]

Sweat Equity

Question 66: Can a borrower receive cash back at closing from a gift of sweat equity?

Answer: Only if the borrower’s investment (earnest money deposit, POCs, etc.) plus the gift of sweat equity exceeds the required investment.  Example:  Borrower’s father gives a gift of sweat equity in the amount of $2,000.  The borrower’s earnest money deposit is $1,000 and the statutory investment is $3,000.  In this scenario, the borrower could not receive cash back.  However, if the borrower’s earnest money deposit was $2,000, he/she could receive $1,000 cash back at closing.

Tax Credit

Question 67: Can the tax credit be applied toward the borrower's required investment?

Answer: The borrowers must have their own minimum investment assets verified by the lender at underwriting.  Seller real estate tax credits cannot be used to offset minimum investment requirements; however, the tax credit may mean that actual cash brought to closing is less, or even result in cash back.  This is acceptable.  The borrowers minimum investment verification is mandatory, regardless of the actual cash brought to or received at closing.