Paid outside closing
 | This article relies on a single source. (November 2025) |
Paid outside closing (POC)[1] is the fees or payments rendered outside normal title insurance and underwriting fees due at the time of closing a loan. When acquiring a mortgage or refinancing, a lender or broker may show that an appraisal fee is POC because the fee is usually due at the time of service, prior to closing. For a $0 closing cost loan, this is often refunded to the borrower at the time of closing.
Disclosure on closing forms
[edit]In United States mortgage disclosures, an item paid outside closing is a cost that is not paid from closing funds but would otherwise be disclosed on the closing form. Regulation Z provides that such items should be marked with the phrase "Paid Outside of Closing" or the abbreviation "P.O.C." and should include the name of the party making the payment.[2]
For this purpose, closing funds are funds collected and disbursed at the real estate closing. The designation therefore indicates how a cost was paid, rather than whether the cost is part of the loan estimate or closing disclosure process.[3]
References
[edit]- ↑ "Real Estate Settlement Procedures Act (Regulation X)". federalregister.gov. 20 December 2011. Retrieved 6 November 2025.
- ↑ "12 CFR § 1026.38 — Content of disclosures for certain mortgage transactions". Consumer Financial Protection Bureau. Retrieved 29 June 2026.
- ↑ "12 CFR § 1026.38 — Content of disclosures for certain mortgage transactions". Legal Information Institute, Cornell Law School. Retrieved 29 June 2026.
 | This finance-related article is a stub. You can help Wikipedia by adding missing information. |