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TITLE 24 - HOUSING AND URBAN DEVELOPMENT
SUBTITLE B - REGULATIONS RELATING TO HOUSING AND URBAN DEVELOPMENT
CHAPTER XX - OFFICE OF ASSISTANT SECRETARY FOR HOUSING - FEDERAL HOUSING COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
PART 3500 - REAL ESTATE SETTLEMENT PROCEDURES ACT
Appendix E to Part 3500 - Arithmetic Steps
I. Example Illustrating Aggregate Analysis: ASSUMPTIONS: Disbursements: $360 for school taxes disbursed on September 20 $1,200 for county property taxes: $500 disbursed on July 25 $700 disbursed on December 10 Cushion: One-sixth of estimated annual disbursements Settlement: May 15 First Payment: July 1 Step 1_Initial Trial Balance ------------------------------------------------------------------------ Aggregate ----------------------------- pmt disb bal ------------------------------------------------------------------------ Jun....................................... 0 0 0 Jul....................................... 130 500 -370 Aug....................................... 130 0 -240 Sep....................................... 130 360 -470 Oct....................................... 130 0 -340 Nov....................................... 130 0 -210 Dec....................................... 130 700 -780 Jan....................................... 130 0 -650 Feb....................................... 130 0 -520 Mar....................................... 130 0 -390 Apr....................................... 130 0 -260 May....................................... 130 0 -130 Jun....................................... 130 0 0 ------------------------------------------------------------------------ Step 2_Adjusted Trial Balance [Increase monthly balances to eliminate negative balances] ------------------------------------------------------------------------ Aggregate ----------------------------- pmt disb bal ------------------------------------------------------------------------ Jun....................................... 0 0 780 Jul....................................... 130 500 410 Aug....................................... 130 0 540 Sep....................................... 130 360 310 Oct....................................... 130 0 440 Nov....................................... 130 0 570 Dec....................................... 130 700 0 Jan....................................... 130 0 130 Feb....................................... 130 0 260 Mar....................................... 130 0 390 Apr....................................... 130 0 520 May....................................... 130 0 650 Jun....................................... 130 0 780 ------------------------------------------------------------------------ Step 3_Trial Balance With Cushion ------------------------------------------------------------------------ Aggregate ----------------------------- pmt disb bal ------------------------------------------------------------------------ Jun....................................... 0 0 1040 Jul....................................... 130 500 670 Aug....................................... 130 0 800 Sep....................................... 130 360 570 Oct....................................... 130 0 700 Nov....................................... 130 0 830 Dec....................................... 130 700 260 Jan....................................... 130 0 390 Feb....................................... 130 0 520 Mar....................................... 130 0 650 Apr....................................... 130 0 780 May....................................... 130 0 910 Jun....................................... 130 0 1040 ------------------------------------------------------------------------ II. Example Illustrating Single-Item Analysis (Existing Accounts) ASSUMPTIONS: Disbursements: $360 for school taxes disbursed on September 20 $1,200 for county property taxes: $500 disbursed on July 25 $700 disbursed on December 10 Cushion: One-sixth of estimated annual disbursements Settlement: May 15 First Payment: July 1 Step 1_Initial Trial Balance ---------------------------------------------------------------------------------------------------------------- Single-item ----------------------------------------------------------- Taxes School taxes ----------------------------------------------------------- pmt disb bal pmt disb bal ---------------------------------------------------------------------------------------------------------------- June................................................ 0 0 0 0 0 0 July................................................ 100 500 -400 30 0 30 August.............................................. 100 0 -300 30 0 60 September........................................... 100 0 -200 30 360 -270 October............................................. 100 0 -100 30 0 -240 November............................................ 100 0 0 30 0 -210 December............................................ 100 700 -600 30 0 -180 January............................................. 100 0 -500 30 0 -150 February............................................ 100 0 -400 30 0 -120 March............................................... 100 0 -300 30 0 -90 April............................................... 100 0 -200 30 0 -60 May................................................. 100 0 -100 30 0 -30 June................................................ 100 0 0 30 0 0 ---------------------------------------------------------------------------------------------------------------- Step 2_Adjusted Trial Balance (Increase Monthly Balances To Eliminate Negative Balances) ---------------------------------------------------------------------------------------------------------------- Single-item ----------------------------------------------------------- Taxes School taxes ----------------------------------------------------------- pmt disb bal pmt disb bal ---------------------------------------------------------------------------------------------------------------- Jun................................................. 0 0 600 0 0 270 Jul................................................. 100 500 200 30 0 300 Aug................................................. 100 0 300 30 0 330 Sep................................................. 100 0 400 30 360 0 Oct................................................. 100 0 500 30 0 30 Nov................................................. 100 0 600 30 0 60 Dec................................................. 100 700 0 30 0 90 Jan................................................. 100 0 100 30 0 120 Feb................................................. 100 0 200 30 0 150 Mar................................................. 100 0 300 30 0 180 Apr................................................. 100 0 400 30 0 210 May................................................. 100 0 500 30 0 240 Jun................................................. 100 0 600 30 0 270 ---------------------------------------------------------------------------------------------------------------- Step 3_Trial Balance With Cushion ---------------------------------------------------------------------------------------------------------------- Single-Item ----------------------------------------------------------- Taxes School taxes ----------------------------------------------------------- pmt disb bal pmt disb bal ---------------------------------------------------------------------------------------------------------------- Jun................................................. 0 0 800 0 0 330 Jul................................................. 100 500 400 30 0 360 Aug................................................. 100 0 500 30 0 390 Sep................................................. 100 0 600 30 360 60 Oct................................................. 100 0 700 30 0 90 Nov................................................. 100 0 800 30 0 120 Dec................................................. 100 700 200 30 0 150 Jan................................................. 100 0 300 30 0 180 Feb................................................. 100 0 400 30 0 210 Mar................................................. 100 0 500 30 0 240 Apr................................................. 100 0 600 30 0 270 May................................................. 100 0 700 30 0 300 Jun................................................. 100 0 800 30 0 330 ---------------------------------------------------------------------------------------------------------------- [59 FR 53908, Oct. 26, 1994, as amended at 60 FR 8816, Feb. 15, 1995.
Redesignated at 61 FR 58479, Nov. 15, 1996]
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