CDA Form 101 Mortgagors Certification of Actual Costs

What Is CDA Form 101?

CDA Form 101, titled Mortgagors Certification of Actual Costs, is a standardized document used in many jurisdictions when a property owner (the mortgagor) is seeking a deed of trust, mortgage, or other financing arrangement. The form requires the mortgagor to certify the exact amount of costs that have been incurred in connection with the transaction, ensuring that the lender receives a true and accurate figure.

The certification helps protect both the lender and the borrower. Lenders rely on the certified costs to calculate loantovalue ratios, interest, and fees, while borrowers gain clarity that no hidden or undisclosed charges are being imposed.

Key Elements of the Form

Although the exact layout may differ by state, the following sections are commonly found on CDA Form 101:

• Borrower Information: Name(s) of the mortgagor(s) and mailing address.
• Property Description: Legal description, parcel number, and address of the secured property.
• Loan Details: Principal amount, interest rate, term, and any adjustablerate provisions.
• Cost Breakdown: A lineitem list of all costs associated with the loan, including appraisal fees, title search, recording fees, attorney fees, and any prepaid interest.
• Certification Statement: A sworn declaration that the figures are correct, signed and dated by the mortgagor(s) and often notarized.
• Instructions for Completion: Guidance for filling out the form, often provided by the lender or the recording office.

Why the Certification Matters

The certification portion of CDA Form 101 is more than a formality. It creates a binding statement that the borrower has reviewed and approved the disclosed costs. If a dispute later arises over fees, the signed certification can be used as evidence in court or arbitration.

Additionally, many state recording statutes require a certified cost statement before a deed of trust can be recorded. Failure to provide a properly completed Form 101 may delay closing, cause a lien to be deemed invalid, or trigger penalties for noncompliance.

Common Pitfalls to Avoid

1. Omitting Small Fees: Even seemingly minor items such as courier charges or document preparation fees must be listed. Omissions can be interpreted as intentional concealment.
2. Using OutofDate Forms: Lenders periodically update the form to reflect changes in state law or recording requirements. Always request the latest version from the lender or the local recorders office.
3. Incorrect Totals: Arithmetic errors are a frequent cause of delays. Doublecheck every subtotal and the final total before signing.
4. Failure to Notarize: Most jurisdictions require a notary public to witness the mortgagors signature. An unsigned or nonnotarized form is typically rejected.
5. Signing Under Duress: The certification must be made voluntarily. Any sign of coercion could render the document voidable.

StepbyStep Guide to Completing CDA Form 101

Step 1 Gather Documentation

Collect all invoices, settlement statements, and fee schedules related to the loan. A settlement statement (HUD1 or Closing Disclosure) is especially helpful because it already itemizes most costs.

Step 2 Fill in Borrower and Property Information

Enter the full legal names of all mortgagors exactly as they appear on the loan documents. Use the official parcel number and the legal description from the deed.

Step 3 Enter Loan Details

Copy the principal, interest rate, and term directly from the loan agreement. Do not round figures unless instructed.

Step 4 Itemize Costs

List each cost on its own line, using the description found on the supporting invoice. Include:

• Appraisal
• Credit report
• Title insurance (owners and lenders)
• Recording fees
• Escrow/settlement agent fees
• Attorney fees
• Prepaid interest
• Escrow deposits for taxes and insurance

Sum the amounts to obtain the Total Actual Costs.

Step 5 Review and Sign

Carefully reread the certification statement. Verify that the total matches the sum of the itemized costs. Sign and date the form in the presence of a notary public.

Step 6 Attach Supporting Documents

Attach copies of all invoices, the Closing Disclosure, and any other records that substantiate the figures. Keep the originals for your own records.

Step 7 Submit

Provide the completed and notarized Form 101 to the lender or the title company, who will forward it to the county recorder for filing.

Legal References

While the exact citation varies, many states reference the form under their realproperty or mortgage statutes. Examples include:

• California Civil Code 2954.1
• Texas Property Code 51.002
• Florida Statutes 689.25

Consult local legislation or a realestate attorney to confirm the applicable authority in your jurisdiction.

Frequently Asked Questions

Do I need a lawyer to complete Form 101?

No, the form can be completed by the mortgagor with the assistance of the lender or title company. However, obtaining legal advice is prudent if you have questions about specific fees or suspect an error.

Can I amend the form after signing?

Amendments require a new certification and notarization. Most lenders will ask you to submit a corrected form before the loan closes.

What happens if the certified amount is later found to be inaccurate?

The lender may demand repayment of the difference, adjust the loan balance, or, in severe cases, pursue legal action for misrepresentation.

Conclusion

CDA Form 101 is a critical component of the mortgage closing process. By accurately certifying actual costs, mortgagors protect themselves from hidden charges and help lenders meet legal recording requirements. Careful preparation, thorough review, and proper notarization are the three pillars of a successful submission.

For further guidance, contact your lenders closing department, a qualified realestate attorney, or the county recorders office.