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The NEW HUD-1 - A Line by Line Walk-Through
Webinar
February 17, 2010 9-10 a.m. CST
Presenter Ms. Christine Sisseck Dennis Schwartz & Assoc., Attorneys At Law 1446 Heritage Dr Mc Kinney, TX 75069-3286 972.562.1966 [email protected] Panelists Mr. Alan Jackson Dennis Schwartz & Assoc., Attorneys At Law 106 Blue Sky Court Georgetown, TX 78633 512.863.6845 [email protected] Ms. Charlotte M. Meyer Robertson & Anschutz 10333 Richmond Ave., Suite 550 Houston, TX 77042 713.980.9520 [email protected]
Ms. Janet S. Minke, CTIA Alliant National Title Insurance Company 7967 S FM 51 Boyd, TX 76023-3810 303.647.4047 [email protected] Mr. Charles H. Newman, III Beadles, Newman & Lawler 3500 Hulen Fort Worth, TX 76107 817.731.6469 [email protected] Mr. Dennis Schwartz Dennis Schwartz & Assoc., Attorneys At Law 1446 Heritage Dr Mc Kinney, TX 75069-3286 972.562.1966 [email protected]
Alan W. Jackson Compliance Administrator Schwartz and Associates Al has extensive experience in the residential mortgage business including loan production, loan servicing, regulatory compliance and government relations. Previously he served as Vice President of Government Relations at CitiMortgage, Inc. (St. Louis), and Vice President of Compliance and Government Issues at Principal Residential Mortgage, Inc. (Des Moines). Al has participated in various working groups of the Mortgage Bankers Association, Financial Services Roundtable, and the Consumer Mortgage Coalition, and is past chair of the Principal Financial Group Political Action Committee. Al obtained a Bachelor of Science degree in Mathematics & Business from Minnesota State University, and attended graduate school at the University of Colorado and Drake University Law School Christine Sisseck Operations Manager Schwartz and Associates Christine has been with Schwartz & Associates, a real estate document preparation Texas law firm, for 20 years. Employed in the mortgage industry since 1985, she has a broad and detail knowledge of residential real estate regulations and compliance matters, as well as experience in all phases of loan production, closing and operations. Prior to Schwartz & Associates, she worked at Merrill Lynch Mortgage, First Union Mortgage and Gregory Gregg & Associates. Christine attended Missouri Southern State College in Joplin, Missouri. Her expertise, attention to detail and commitment to accuracy in document preparation have been instrumental in taking Schwartz & Associates from a start-up operation to a national document preparation firm with a reputation for knowledge and quality.
CHARLOTTE M. MEYER Attorney at Law
Robertson & Anschutz 10333 Richmond Avenue
Suite 550 Houston, Texas 77042
713-980-9520 [email protected]
EDUCATION B.A. in Journalism, South West Texas State University - 1980 J.D., South Texas College of Law - 1986
PROFESSIONAL ACTIVITIES Texas Land Title Association – Education Committee Certification Committee Legal Issues Committee Texas Mortgage Bankers Association The College of the State Bar of Texas Texas Association of Mortgage Attorneys
LICENSURES AND CERTIFICATIONS State Bar of Texas United States – Southern, Eastern, Western and Northern Districts Courts of Texas Texas Board of Legal Specialization – Residential Real Estate Texas Board of Legal Specialization – Farm and Ranch Real Estate Certified Title Insurance Associate
PUBLICATIONS AND ARTICLES Tierra Grande Magazine – “Recognizing Mortgage Fraud” (January 2006) Co-Author State Bar of Texas 28th Annual Advanced Real Estate Law Course – “The Non-Borrowing Spouse in
Real Estate Transactions” (2006) Co-Author Texas Mortgage Lending Law & Practices Deskbook – Contributing Author Texas Mortgage Bankers Association Annual Education Seminars – “Fraud, Closing and Disclosing”
(2006) Author and Lecturer Texas Mortgage Bankers Association/Texas Land Title Association – “The New RESPA Road: Where
Lenders and Title Intersect” (2009) Panelist Texas Land Title Association Regional Seminars –
“The Legal Perspective – Deceased Real Property” (2004) Author and Lecturer “Advanced Title Examinations and Underwriting – Easements” (2006) Author and Lecturer “Liabilities and Responsibilities of a Notary Public” (2006) Author and Lecturer “Lost in Translation –Lender Lingo” (2007) Author and Lecturer “Ad Valorem Taxation” (2008) Lecturer “Foreclosure and Its Various Alternatives” (2009) Author and Lecturer “RESPA and the New HUD-1 – Hands On, How To Workshops” (2009) Lecturer
JANET S. MINKE Vice President, Underwriting Support Services
Alliant National Title Insurance Company Toll-free: 877-788-9800 x440
Direct: 303-647-4047 Mobile: 817-832-5656
EDUCATION • BA in Social Science from University of North Texas, 1970 • Texas Secondary Teaching Certificate
TITLE INSURANCE EXPERIENCE Ms. Minke entered the title insurance industry as an escrow assistant and conveyancer in a fee attorney office in Fort Worth, Texas, in 1970. Shortly thereafter, the attorney retired, selling his closing offices to Guardian Title Company, where Ms. Minke remained until 1994, progressing from escrow assistant to commercial escrow officer and eventually to Executive Vice President. Since that time, she has held various regional and national roles with major national title insurance companies where for the past 10 years she was a Business Process Manager and Corporate Trainer. She has recently moved into her current position with Alliant National, where she is available to respond to underwriting questions, as well as providing training and education for the company’s partner agents.
TEXAS LAND TITLE ASSOCIATION ACTIVITIES AND HONORS • Honors: Title Woman of the Year – 2006
Professional Excellence Award – Outstanding Underwriter Support, 2005 Peggy Hayes Teaching Excellence Award, 1995 President’s Award for Outstanding and Exemplary Contribution, 1992-93 Outstanding Young Title Person, 1985-86
• Current Chair: Education Committee • Current Member: Certification Task Force, Regulatory Committee
TEACHING AND TRAINING ACTIVITIES • TLTA and NMLTA Land Title School and Texas Land Title Institute • State Bar of Texas: Advanced R E Law Course – 2006; Agricultural Law Course – 2009 • TLTA, OLTA, NMLTA and NAPMW Conferences and Seminars • Underwriter Agency Seminars and Training in Texas, New Mexico and Oklahoma
PUBLICATIONS - Articles in TLTA News • Money-Saving Ideas That Everyone Can Use, 1988 • Proper Time Management Ensures Efficient Closings, 1989 • Tips Help Clarify Procedural Rules, 1991 • Training Today’s Workforce: Educating for Excellence, 1997
Charles H. Newman Biography Charles H. Newman is a founding partner and Chairman of the Board of Beadles, Newman & Lawler, P.C. Beadles, Newman & Lawler is a real estate law firm whose primary focus is the preparation of residential and commercial closing documents and is located in Fort Worth, Texas. The firm clients include national and regional banks, mortgage companies as well as title companies.
Mr. Newman’s career started in the title industry. From 1978 to 1999, he was Chairman of the Board and Chief Executive Officer for Trinity Western Title. Trinity Western Title was purchased by Alamo Title and ultimately by Fidelity National Title. He was honored as Title Man of the Year by the Texas Land Title Association in 1981 and he served as President of the Texas Land Title Association from 1982 to 1983. Mr. Newman is Board Certified in Commercial and Residential Real Estate Law by the Texas Board of Legal Specialization. He is a member of the State Bar of Texas, the Texas College of Real Estate Attorneys, the National Mortgage Bankers Association and the Texas Mortgage Bankers Association. He received his Bachelor of Arts from Washington & Lee University in Lexington, Virginia and his Juris Doctorate from the University of Texas School of Law in Austin, Texas. Charles is in high demand as a speaker. His presentations combine an informal style with humor and real world examples. His topics include Federal Regulatory Compliance, real estate and title related issues.
Executive Biography: Dennis P. Schwartz
Founder
DocsDirect (Schwartz & Associates)
Dennis P. Schwartz is founder of McKinney, Texas-
based Schwartz & Associates real estate law. Since 1989,
Schwartz & Associates has specialized in residential loan
document preparation for mortgage lenders of all sizes.
Under Schwartz’s leadership, Schwartz & Associates has developed DocsDirect
Online, a Web-based mortgage document solution that offers the flexibility
needed to handle the array of lender channels and loan programs offered by their
clients.
From 1996 to 2001, Mr. Schwartz was general counsel for the Texas
Mortgage Broker Association and is currently general counsel to the Tarrant
County Mortgage Broker Association and Dallas Association of Mortgage
Brokers. He was a member of the Board of Directors for the Texas Association of
Mortgage Brokers from 2002 - 2008.
Mr. Schwartz was a key participant in drafting legislation and
communicating with state political figures for the passage of the Texas mortgage
broker licensing and home equity constitutional amendment. He is an active
member of many other associations, including the State Bar of Texas, National
Mortgage Brokers Association and the Independent Bankers Association of
Texas.
Mr. Schwartz began practicing law in 1976 with the Tarrant County District
Attorney’s office. From 1977 until 1983, he was a litigator in a general practice
law firm. He began his focus on real estate law in 1983 representing numerous
savings and loan associations. Since 1989, he has limited his practice to
residential real estate lending document preparation representing banks,
mortgage brokers and wholesale lenders nationwide.
After receiving his Bachelor’s degree from Sarah Lawrence College in
1973, Mr. Schwartz received his Juris Doctor from Southern Methodist University
in 1976.
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PresenterChristine Sisseck, Schwartz & Associates, McKinney
PanelistsAlan Jackson, Schwartz & Associates, McKinney
Charlotte M. Meyer, CTIA, Robertson & Anschutz, HoustonJanet S. Minke, CTIA, Alliant National Title Insurance Company, Dallas
Charles H. Newman, III, Beadles, Newman & Lawler, DallasDennis Schwartz, Schwartz & Associates, McKinney
Welcome to Today’s WebinarPresented by
Independent Bankers Association of Texas and
Texas Land Title AssociationFebruary 17, 2010
Purpose of this presentation is to provide a detailed line by line instruction on how to complete the HUD1 Settlement Statement.
Whether you are a loan originator, processor, underwriter, closer, doc prep attorney or closing agent, everyone needs to have an understanding of the GFE and HUD1 as they now go
hand in hand.
It is truly a collaborative effort for all parties.
RealEstateSettlementProceduresAct
1974RESPA Introduced
19961st RESPA Reform
2002Additional Reform Process began
March 14, 2008Proposed New Rule released
November 17, 2009Final New Rule published
January 1, 2009Portions Final New Rule effective
January 1, 2010Final New Rule effective
RealEstateSettlementProceduresAct
RESPA Reformimpacts all parties in
a real estate transaction
LendersTitle ProvidersSettlement AgentsMortgage BrokersRealtorsBuildersBuyers – BorrowersSellers
New RESPA Final RuleConsumer Protection Act
Greater Disclosure of Loan Terms and Settlement Fees
New standardized forms
Encourages consumer to shop for loan and service providers
Fees disclosed upfront must be closer to the actual fees collected at closing
Lender bound to settlement charges and terms disclosed in GFE, subject to certain tolerances
Goal was clarity, transparency and accuracy
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New RESPA Final RuleNew Good Faith Estimate
New HUD‐1 Settlement Statement
Service Provider List
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HUD‐1 Settlement StatementHUD‐1 Settlement Statement(HUD1) itemizes all the settlement charges
incurred with a federally related mortgage loan.
HUD‐1A is an abbreviated version of the HUD1 that can be used if there is no seller involved in the transaction, such as for refinances.
New Standardized HUD1 Settlement Statement – 3 pages
Re‐designed HUD1 Page 2 references GFE Block numbers
New Page 3 directly compares GFE estimated charges with final HUD1 charges
Tolerance Restrictions0% Bucket10% BucketUnlimited Bucket
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HUD1 Settlement StatementLender’s Responsibility
Must provide all information from GFE and Loan Terms to Settlement Agent in order to complete HUD1 properly
Settlement Agent’s ResponsibilityMust properly prepare and complete HUD1
Borrower’s RightMay request review of HUD1 one day prior to settlement
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Suggestions on what to provideLender is responsible for providing SettlementAgent with all the information from GFE and LoanTerms necessary to properly complete the HUD‐1
Suggested forms to provide to Settlement Agent:
Last Good Faith Estimate disclosed to consumerServicer Provider List disclosed to consumerComprehensive Closing InstructionsSample of items for HUD‐1 which reflect
800 series for Page 2 of HUD1Loan Summary Information for Page 3 of HUD‐1
HUD1 – Page OneSummary of Transaction
Identification of Loan and Parties to TransactionSummary of Borrower’s TransactionSummary of Seller’s TransactionBottom Line Amount Due from/to Borrower and Seller
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HUD1 – Page One
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HUD1 – Page TwoListing of All Settlement Charges
Same Series or Grouping of Fees
Line Items have been renamed or repositioned
Reference to corresponding GFE Block Number
“Inside” and “Outside” Column Line Items
Total of Borrower and Seller Column
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HUD1 – Page Two
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HUD1 – Page ThreeComparison Chart
Estimated GFE Fees vs. Actual HUD1 FeesCharges That Cannot Increase (0%) Charges That in Total Cannot Increase More Than 10%
Charges That Can Change (Unlimited)
Key Loan TermsInitial Loan Terms”Red Flag” Items
Adjustments in rate and paymentNegative AmortizationPrepayment PenaltiesBalloon Payments
Escrow Account SummaryTotal Monthly Payment
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HUD1 – Page One, 200 series200. Amounts Paid by or in Behalf of Borrower
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HUD1 – Page One, 200 series200. Amounts Paid by or in Behalf of Borrower
Credits to Borrower reflected in Lines 204 ‐ 209From Seller for Closing Costs (HUD‐1 Seller‐paid items FAQ 1 & 2)
From Lender for POC items or payment of Closing CostsFrom Third Party (HUD‐1 200 Series FAQ 4)
Credits to Cure Tolerance Violations may be reflected in Lines 204‐209 (Section 4 and 5 – Right to cure and tolerance violations FAQ 12)
Second Lien Proceeds (HUD‐1 200 Series FAQ 1)
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HUD1 – Page One, 500 series500. Reductions in Amount Due to Seller
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HUD1 – Page One, 500 series500. Reductions in Amount Due to Seller
Credits to Borrower reflected in Lines 504 – 509From Seller for Closing Costs
(HUD‐1‐Page 1, HUD‐1 Seller‐paid items FAQ 1 & 2)
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HUD1 – Page TwoPre‐2010 (Old) HUD1
If Seller pays fee, listed in Seller ColumnIf Borrower pays fee, listed in Borrower Column
New 2010 HUD1If fee disclosed on GFE, no matter who pays fee, listed in Borrower ColumnIf Seller or Third Party pays fee that was disclosed on GFE
Charge must be shown inside Borrower Column on HUD1 Page 2Offset by reflecting Credit to Borrower on HUD1 Page 1 in Lines 204‐209 If paid by Seller, also a Charge to Seller must be reflected on HUD1 Page in Lines 506‐509
(HUD‐1‐General FAQ 6, HUD‐1 Seller‐paid items FAQ 1 & 2)
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HUD1 – Page Two“Borrower Responsible Fees”
Fees that are typically Borrower Costs or normally paid by Borrower
Should have been disclosed on GFE, no matter who ultimately pays for the fees at closing
Will be reflected in Borrower Column on HUD1 Page 2, no matter who ultimately pays for the fees at closing
If fee is being paid by seller, lender or third party, shown in Borrower Column on HUD1 Page 2 and a credit is shown on HUD1 Page 1
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HUD1 – Page Two“Seller Responsible Fees”
Fees that are typically Seller Costs or normally paid by Seller
Were not disclosed on GFEIf disclosed on GFE, then must be reflected in Borrower ColumnOn HUD1 Page 2 and show as seller credit on HUD1 Page 1
Will be reflected in Seller Column on HUD1 Page 2
Exception to above rule:On a purchase transaction, Owner’s Title Policy must always bedisclosed on GFE no matter if seller responsible fee, therefore mustalways be reflected inside Borrower column on HUD1 Page 2 andoffset by credit on HUD 1 Page 1 (HUD‐1 Seller‐paid items FAQ 1)
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HUD1 – Page Two“Inside the Columns” ‐ Aggregate Totals, except 801, are reflected “inside the columns”
“Outside the Columns” – If fees are itemized, normally shown indented “outside the columns”
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HUD1 – Page TwoGFE Block Number Reference ‐ HUD1 Lines on Page 2 have a cross reference to GFE Block Number*
*The dollar amount reflected should be the amount to be collected at closing not theamount disclosed on GFE.
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HUD1 – Page TwoRoll‐up Lines ‐ Line item is a total of individual fees which may or may not be itemized in a particular series
Roll‐up Line – 703, 801, 803, 1001, 1101, 1201, 1203, 1301 are an aggregate total of individual feesTypically collected inside the column the Borrower column (except 801)Typically the first line item in a series (except 703, 803, 1203)
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HUD1 – Page Two, 700 series700. Total Real Estate Broker Fees
All Charges that are due the Real Estate Broker/Agent (not disclosed on GFE)701 Listing Agent Commission
Dollar Amount onlyIndividual Line ItemOutside the Column
702 Selling Agent CommissionDollar Amount onlyIndividual Line ItemOutside the Column
703 Total CommissionDollar Amount onlyRoll‐up (down) LineInside the Column
704 OtherDollar AmountIndividual Line ItemInside the Column
These fees are not disclosed by Originator on GFE, not part of loan transaction, not reflected onHUD1 Page 3.
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HUD1 – Page Two, 800 series800. Items Payable in Connection with Loan
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HUD1 – Page Two, Line 801801. Our Origination Charge
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HUD1 – Page Two, Line 801801. Our origination charge (HUD‐1 800 series FAQ 1)
All Charges that Originator will receive for compensationAdministrative FeeApplication FeeBroker FeesCommitment FeeCourier/Delivery FeeIn‐house AppraisalLender Inspection FeeDocument Preparation Fee (even if paid to third party) (HUD‐1 800 series FAQ 2)
MERS Fee (HUD‐1 800 series FAQ 9)
Origination FeeProcessing FeeUnderwriting FeeVerification FeeWire FeeService Fees paid directly to OriginatorMiscellaneous FeesYield Spread Premium (for table funding brokers)
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HUD1 – Page Two, Line 801801. Our origination charge
Roll‐up Line“Outside the Columns”Does include YSP, but does not include Discount PointsNo POC items (HUD‐1 800 series FAQ 4)
If individual fee included in 801 was prepaid/POC, amount prepaid/POC must shown as credit or refunded to Borrower on HUD1Page 1 in 200s
Disclosed in Block 1 on GFEZero Tolerance BucketAny increase must be cured by Lender reimbursement
HUD Line 801 = GFE Block 1 = 0% Tolerance Bucket31
HUD1 – Page Two, Line 801801. Our origination chargeIRS 1098 Reporting of Actual Origination Points allowed(HUD‐1 800 series FAQ 10)
PercentageDollar AmountOutside the Columns
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HUD1 – Page Two, Line 802802. Your Credit or Charge (Points) for the specific interest rate chosen
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HUD1 – Page Two, Line 802802. Your Credit or Charge (Points) for the specific interest rate chosen
Zero, if no credit and no chargeCredit (HUD‐1 800 series FAQ 5)
Charge
A credit and charge cannot occur together in same transaction
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HUD1 – Page Two, Line 802802. Your Credit or Charge (Points) for the specific interest rate chosen
CreditMust be equal to or greater than credit disclosed on GFEYield Spread Premium for Table Funding Brokers“No cost” Loan Credit
Fees being paid through interest rateCredit given used to offset all fees
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HUD1 – Page Two, Line 802802. Your Credit or Charge (Points) for the specific interest rate chosen
ChargeMust be equal to or less than charge disclosed on GFEDiscountEscrow Waiver FeeBuydown
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HUD1 – Page Two, Line 802802. Your Credit or Charge (Points) for the specific interest rate chosen
Individual Fee Line“Outside the Columns”No POC items
No longer reflect YSP payment from lender to broker on HUD1No Percentage shown
Disclosed in Block 2 on GFEZero Tolerance BucketAmount should match amount disclosed in GFE Block 2
Any credit for rate chosen cannot decreaseCredit can increase since it would benefit borrower
Any charge for rate chosen cannot increaseCharge can decrease since it would benefit borrower
HUD Line 802 = GFE Block 2 = 0% Tolerance Bucket
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HUD1 – Page Two, Line 803803. Your Adjusted Origination Charges
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HUD1 – Page Two, Line 803803. Your Adjusted Origination Charges
Line 801 +/‐ Line 802 = Line 803
May be a negative number if Credit in Line 802 exceeds Charge in Line 801
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HUD1 – Page Two, Line 803803. Your Adjusted Origination Charge
Roll‐up (down) Line of 801 and 802“Inside the Columns”No POC items
Disclosed in Block A on GFEZero Tolerance BucketAmount should match amount disclosed in GFEBlock A
HUD Line 803 = GFE Block A = 0% Tolerance Bucket
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HUD1 – Page Two, Line 804 ‐ 807
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HUD1 – Page Two, Line 804 ‐ 807
Individual Fee Lines ( Appraisal Fee: HUD‐1 800 series FAQ 6, 8 & 11)“Inside the Columns”POC items are reflected “outside the columns”Payable to the appropriate service providerLines cannot be renamed or used for any other item
Disclosed in Block 3 on GFE10% Tolerance Bucket – aggregate total, even if POCFees payable to third party other than Originator
HUD Line 804, 805, 806, 807, 800s inside the column fees =GFE Block 3 = 10% Tolerance Bucket
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HUD1 – Page Two, Line 808 ‐899Blank lines for additional fees in 800 series
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HUD1 – Page Two, Line 808 ‐ 899Blank lines for additional fees in 800 series
Any Charges for services that Originator requires use of a particular provider, that do not have a specific line item and disclosed in GFE Block 3
Final Inspection FeeMCC Fee
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HUD1 – Page Two, Line 808 – 899
Individual Fee Lines“Inside the Columns” if Required Services Lender Selects and disclosed in GFE Block 3POC items are reflected “outside the columns”, if Required Services Lender Selects and disclosed in GFE Block 3Payable to the appropriate service providerAdditional lines can be added if necessary by separate page
Disclosed on Block 3 on GFE10% Tolerance Bucket – aggregate total, even if POCFees payable to third party other than Originator
HUD Line 804, 805, 806, 807, 800s inside the column fees =GFE Block 3 = 10% Tolerance Bucket
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HUD1 – Page Two, Line 808 ‐ 899Blank lines for additional fees in 800 series
Any Charges for services that Originator rolled into Line 801 payable to a third party
Document Preparation FeeIRS Transcript FeeVerification of Employment Service Fee
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HUD1 – Page Two, Line 808 – 899Blank lines for additional fees in 800 series
ITEMIZATION IS ALLOWED “OUTSIDE THE COLUMNS”(HUD‐1 800 series FAQ 7)
Individual Fee Lines“Outside the Columns” if part of Origination Charges disclosed in GFE Block 1 and rolled up into Line 801, if
Payable to third partyRequired by state lawRequired by program guidelines or federal agency
0% Tolerance BucketFees rolled up into 801 must not be reflected “inside the columns”Payable to appropriate party
HUD Line 801 = GFE Block 1 = 0% Tolerance Bucket
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HUD1 – Page Two, 900 series900. Items Required by Lender to Be Paid in Advance
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HUD1 – Page Two, Line 901901. Daily Interest Charges
The charge for the amount of interest on new loan due from date of settlement until first day of next month or first day of normal payment cycle
Date of Disbursement/Funding
First Day of the Coming Month
Amount of Interest to be collected Daily(Loan Amount x Interest Rate divided by Per Diem Factor [360, 365 or 366] = Amount of Daily Interest)
Total Amount of Interest to be collected or credited at Closing(Number of Days of Interest Due at Closing x Amount of Daily Interest = Total Interest Due at Closing)*
(If interest credit: Number of Days of Interest Credit Due at Closing x Amount of Daily Interest = Total InterestCredit Due at Closing*) (HUD1 900 series FAQ 2)
*Interest credit is shown as a negative number
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HUD1 – Page Two, Line 901901. Daily Interest Charges
Individual Fee Line“Inside the Columns”Line cannot be renamed or used for any other item
Disclosed in Block 10 on GFEUnlimited Tolerance BucketCredit reflected if short pay/interest credit applies
HUD Line 901 = GFE Block 10 = Unlimited Tolerance Bucket
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HUD1 – Page Two, Line 902902. Mortgage Insurance Premium
Number of months Premium coversConventional = 1 month – Loan Term, depends on coverage plan required by loan program and/or selected by LenderFHA = Loan Term
Payable to Conventional = MI CompanyFHA = FHA
Total Amount of MI Premium due at closing
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HUD1 – Page Two, Line 902902. Mortgage Insurance Premium
Individual Fee Line“Inside the Columns”Line cannot be renamed or used for any other item
Disclosed in Block 3 on GFE10% Tolerance Bucket – aggregate totalPayable to appropriate entity
HUD Line 902 = GFE Block 3 = 10% Tolerance Bucket
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HUD1 – Page Two, Line 903903. Homeowner’s Insurance
Number of years Premium coversPurchase = 1 Year is usually collected at closingRefinance = 0 – 1 Year, depends on if additional payment or coverage is necessary to meet investor guidelines
Payable to insurance company/agentTotal Amount of Insurance Premium due at closing or collected outside of closing, as appropriate
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HUD1 – Page Two, Line 903903. Homeowner’s Insurance
Individual Fee Line“Inside the Columns”POC items are reflected “outside the columns”Line cannot be renamed or used for any other item
Disclosed in Block 11 on GFEUnlimited Tolerance BucketPayable to insurance company
HUD Line 903 = GFE Block 11 = Unlimited Tolerance Bucket
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HUD1 – Page Two, Line 904, 905Blank Lines for additional fees in 900 series
Flood Insurance (HUD‐1 900 series FAQ 1)
Other required property protection insuranceVA Funding FeeUSDA Guarantee Fee
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HUD1 – Page Two, Line 904, 905Blank Lines for additional fees in 900 series
Individual Fee Line“Inside the Columns”
POC items are reflected “outside the columns”Payable to appropriate entity
If property insuranceDisclosed in Block 11 on GFEUnlimited Tolerance
If program insurance/guarantee feeDisclosed in Block 3 on GFE10% Tolerance Bucket – aggregate total
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HUD1 – Page Two, 1000 series1000. Reserves Deposited with Lender
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HUD1 – Page Two, Line 10011001. Initial Deposit for your escrow account
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HUD1 – Page Two, Line 10011001. Initial Deposit for your escrow account
All Charges that lender requires borrower to place into a reserve or escrow account at settlement to be applied to recurring charges that lender pays on behalf of borrower (HUD1 1000 series FAQ 1)
Condo Content InsuranceEarthquake InsuranceHomeowner’s InsuranceFlood InsuranceMortgage InsuranceProperty TaxesWindstorm/Hail Insurance
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HUD1 – Page Two, Line 10011001. Initial Deposit for your escrow account
Total Amount to be collected at closing to begin the borrower’s escrow/impound account for the loan
Includes Line 1002 – 1006 (and additional 1000s items if applicable)Less Aggregate Adjustment (typically 1007 or last line in 1000s)
Roll‐up Line“Inside the Columns”Disclosed in Block 9 of GFEUnlimited Tolerance BucketLine cannot be renamed or used for any other itemDoes not include amount to bring property taxes current at closing
HUD Line 1001 = GFE Block 9 = Unlimited Tolerance Bucket
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HUD1 – Page Two, Line 1002 ‐ 1006
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HUD1 – Page Two, Line 1002 ‐ 1006Individual Escrow Line Items to be collected at closing to begin the borrower’s escrow/impound account for the loan
1002. Homeowner’s Insurance1003. Mortgage Insurance1004. Property Taxes (itemization of individual taxes, such as city, county and school is no longer required on HUD1) (HUD‐1 – 1000 series FAQ 3)
1005. – 1006. Blank lines to be used if needed for other property insurance
Each applicable escrow item must reflectNumber of months to be collected at closingMonthly amount of escrow item (Total divided by 12)Total amount for individual escrow item to be collected at closing
“Outside the Columns”Individual lines “roll up” into Line 1001
Lines cannot be renamed or used for any other itemAdditional lines can be added if necessary, but Aggregate Adjustment line must always be last line in 1000s (HUD1 1000 series FAQ 2)
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HUD1 – Page Two, Line 10071007. Aggregate Adjustment
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HUD1 – Page Two, Line 10071007. Aggregate Adjustment
Amount that must be credited back to borrower from establishment of escrow account through aggregate accounting method
__________________________________________________________Individual Line Item“Outside the Columns”Shown on 1007, but must always be last line in 1000s(HUD‐1 1000 series FAQ 2)
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HUD1 – Page Two, 1100 Series1100. Title Charges
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HUD1 – Page Two, Line 11011101. Title services and lender’s title insurance
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HUD1 – Page Two, Line 11011101. Title services and lender’s title insurance
All Charges for services that Title/Settlement Agent requires and Title Insurance Costs to protect the Lender (HUD‐1 – 1100 series FAQ 1 – 5 , 15 & 23)
Attorney Fee representing title companyClosing FeeCourier FeeE‐Doc FeeEscrow FeeHandling FeeLender’s Title Insurance Premium (HUD‐1 – 1100 series FAQ 7 & 10)Lender’s Title Endorsement PremiumNotary FeeSettlement FeeTax Certificate Fee on non‐purchase transactionsTexas Guaranty Fee for Lender’s Loan PolicyTitle Binder/Commitment Fee (HUD‐1 – 1100 series FAQ 14)Title Examination FeeWire Fee
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HUD1 – Page Two, Line 11011101. Title services and lender’s title insurance
Roll‐up Line“Inside the Columns”Does include 1102 Settlement or Closing Fee and 1104 Lender’s Title Insurance PremiumDoes NOT include 1103 Owner’s Title Insurance Premium
Disclosed in Block 4 on GFE10% Tolerance Bucket – aggregate totalUnlimited Tolerance Bucket – if Borrower chooses a title/settlement agent not on the listIf Originator permits Borrower to shop for a title/settlement agent, must provide at least one option on the service provider list given to Borrower at time GFE is disclosedFees payable to title/settlement agentFees payable to third parties must be itemized “outside the columns” in 1100s
HUD Line 1101, 1102, 1104, 1100s= GFE Block 4= 10% Tolerance Bucket
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HUD1 – Page Two, Line 11021102. Settlement or closing fee
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HUD1 – Page Two, Line 11021102. Settlement or Closing Fee
Individual Fee Line“Borrower Responsible” Fee – typical borrower costs
“Outside the Columns”, no matter who is actually paying fee“Rolls up” into Line 1101
“Seller Responsible” Fee – typical seller cost“Inside the Columns” on 1102 in Seller column
if paid by seller and not disclosed on GFE
Reflect payable to third party, if applicable (not the Settlement Agent)
(HUD‐1 1100 series FAQ 13, 15 & 16)
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HUD1 – Page Two, Line 11031103. Owner’s Title Insurance
All Charges for Title Insurance to protect the BorrowerOwner’s Title Insurance PremiumOwner’s Title Endorsement PremiumTexas Guaranty Fee for Owner’s Policy
Owner’s Title Policy Premium must be disclosed on GFE on purchase transactions. If there is a charge for Owner’s Title Insurance Premium at closing, it must be collected from Borrower regardless of who has agreed to pay. If agreed to be paid by seller or other party, a credit will be reflected on HUD1 Page 1.
71
HUD1 – Page Two, Line 11031103. Owner’s Title Insurance
Individual Fee Lines (HUD‐1 1100 series FAQ 12)
“Inside the Columns”Lines cannot be renamed or used for any other item
Disclosed in Block 5 on GFE10% Tolerance Bucket – aggregate totalUnlimited Tolerance Bucket – if Borrower chooses a title/settlement agent not on the listIf Originator permits Borrower to shop for a title/settlement agent, must provide at least one option on the service provider list given to Borrower at time GFE is disclosedFees payable to third party other than Title/Settlement Agent
HUD Line 1103 = GFE Block 5 = 10% Tolerance Bucket
72
HUD1 – Page Two, Line 11041104. Lender’s Title Insurance
73
HUD1 – Page Two, Line 11041104. Lender’s Title Insurance
All Charges for Title Insurance Costs to protect the LenderLender’s Title Insurance PremiumLender’s Title Endorsement PremiumTexas Guaranty Fee for Lender’s Policy
Please note: RESPA does not require itemization of endorsements
74
HUD1 – Page Two, Line 11041104. Lender’s Title Insurance
Individual Fee Lines“Rolls up” into Line 1101 (HUD‐1 1100 series FAQ 7, 10 & 21)
“Outside the Columns”Lines cannot be renamed or used for any other item
Disclosed in Block 4 on GFEIf Originator permits Borrower to shop for a title/settlement agent, must provide at least one option on the service provider list given to Borrower at time GFE is disclosedFees payable to third party other than Title/Settlement Agent
HUD Line 1101 = GFE Block 4 = 10% Tolerance Bucket
75
HUD1 – Page Two, Line 1105, 1106Title Policy Limits
76
HUD1 – Page Two, Line 1105, 11061105. Lender’s Title Policy Limit (HUD‐1 1100 series FAQ 6)
Loan AmountIf negative amortization loan, maximum loan amountIf reverse mortgage loan, maximum claim amount
1106. Owner’s Title Policy LimitPurchase Price
Individual Line Items (not a fee)“Outside the Columns”Lines cannot be renamed or used for any other item
77
HUD1 – Page Two, Line 1107, 1108Agent and Underwriter portion of Title Insurance Premium
78
HUD1 – Page Two, Line 1107, 11081107. Agent’s portion of the total title insurance premium1108. Underwriter’s portion of the total title insurance premium (HUD‐1 ‐1100 series FAQ 8, 9, 19 , 20 & 22)
Individual Line Items“Outside the Columns”Lines cannot be renamed or used for any other itemPayable to appropriate partyTotal of 1107 and 1108 is equal to
Owner’s title premium, Line 1103, minus $5.00 TX Guaranty FeeLender’s title premium, Line 1104
HUD Line 1107 + 1108 = HUD Line 1103 ‐ $5.00 TX Guaranty Fee + HUD Line 1104
79
HUD1 – Page Two, Line 1109 ‐ 1199Blank lines for additional fees in 1100 series
80
HUD1 – Page Two, Line 1109 ‐ 1199Blank lines for additional fees in 1100 series
Any Charges for title or settlement related services that do not have a specific line item
Attorney Fees for Seller representationAttorney Fees for Borrower representation (HUD‐1 – 1100 series FAQ 11)
___________________________________________Individual Fee Lines“Inside the Columns” if not part of Line 1101Payable to the appropriate service providerAdditional lines can be added if necessary by separate pageNot Disclosed on GFE, if not required by Lender or Title as a part of the loan or settlement transaction
81
HUD1 – Page Two, Line 1109 ‐1199Blank lines for additional fees in 1100 series
ITEMIZATION IS ALLOWED “OUTSIDE THE COLUMNS”(HUD‐1 800 series FAQ 17 & 18)
Individual Fee Lines“Outside the Columns” if part of Title services and Lender’s Title Insurance disclosed in GFE Block 4 and rolled up into Line 1101, if
Payable to third partyRequired by state law
Fees rolled up into 1101 must not be reflected “inside the columns”Payable to appropriate party
HUD Line 1101 = GFE Block 1 = 0% Tolerance Bucket
82
TDI Requirements & Audit Guidelines700 Series – TDI Bulletin 160 requires settlement agent to itemize “outsideof column” names of any third parties who will receive a portion of the realestate commission from settlement.
Line 1107 – TDI Audit Guidelines require settlement agent to itemize“outside of column” on an additional line any amount of title insurance premiumbeing paid to a third party for “title examination” or “closing the transaction” andamount should be subtracted from amount shown in Line 1107.(HUD‐1 – 1100 series FAQ #22)
HUD1 – Page Two, 1200 series1200. Government Recording and Transfer Charges
84
HUD1 – Page Two, Line 12011201. Government recording charges
85
HUD1 – Page Two, Line 12011201. Government Recording Charges (HUD‐1 – 1200 series FAQ 1 & 2)
All Charges for recording loan and title documents upon settlement that are normal borrower costs
Assignment Recording FeeCounty Recording FeeDeed Recording FeeGovernment RecordingDeed of Trust/Mortgage/Security Instrument Recording FeePower of Attorney Recording FeeRelease Recording FeeState Recording Fee
86
HUD1 – Page Two, Line 12011201. Government recording charges
Roll‐up Line“Inside the Columns”Does include 1202 Itemized Document Recording Fees
Disclosed in Block 7 on GFE10% Tolerance Bucket – aggregate totalFees payable to title company or government agencyAdditional specific recording fees may be itemized “outside the columns” in 1200s
HUD Line 1201 = GFE Block 7= 10% Tolerance Bucket87
HUD1 – Page Two, Line 12021202. Deed/Mortgage/Release recording charges
88
HUD1 – Page Two, Line 12021202. Deed/Mortgage/Release recording charges
Itemized Charges for recording specific documents uponsettlement
Deed Recording Fee*Deed of Trust/Mortgage/Security Instrument Recording FeeRelease Recording Fee*
*Deed and Release Recording Fees, if seller responsibleFees and are not required to be disclosed on the GFE(HUD‐1 – 1200 series FAQ 5)
89
HUD1 – Page Two, Line 12021202. Deed/Mortgage/Release recording charges
Individual Fee Line“Borrower Responsible” Fee – typical borrower costs
“Outside the Columns”, no matter who is actually paying fee“Rolls up” into Line 1201
“Seller Responsible” Fee – typical seller cost“Inside the Columns” on 1202 in Seller column
if paid by seller and not disclosed on GFE(HUD‐1 – 1200 series FAQ 5)
90
HUD1 – Page Two, Line 12031203. Transfer Taxes
Roll‐up Line“Inside the Columns”Does include 1205 Itemized Document Tax/Stamps
Disclosed in Block 8 on GFE0% Tolerance BucketFees payable to government agency or departmentAdditional specific state/transfer fees/taxes may be itemized “outside the columns” in 1200s
HUD Line 1203 = GFE Block 8= 0% Tolerance Bucket
91
HUD1 – Page Two, Line 1204, 12051204. City/County tax/stamps1205. State tax/stamps
Itemized Charges for recording specific documents upon settlement
Deed Tax/Stamp*Deed of Trust/Mortgage/Security Instrument Tax/Stamp
*Deed tax/stamp, if seller responsible fees and are not required tobe disclosed on the GFE(HUD‐1 – 1200 series FAQ 6)
92
HUD1 – Page Two, Line 1204,12051204. City/County tax/stamps1205. State tax/stamps
Individual Fee Line“Borrower Responsible” Fee – typical borrower costs
“Outside the Columns”, no matter who is actually paying fee“Rolls up” into Line 1203
“Seller Responsible” Fee – typical seller cost“Inside the Columns” on 1203 in Seller column
if paid by seller and not disclosed on GFE(HUD‐1 – 1200 series FAQ 6)
93
HUD1 – Page Two, Line 1206 ‐ 1299Blank lines for additional fees in 1200 series
94
HUD1 – Page Two, Line 1206 ‐ 1299Blank lines for additional fees in 1200 series
Any Charges for recording fees or transfer taxes/stamps do not have a specific line item and disclosed in GFE Block 7 or 8
Recording for POA (HUD‐1 – 1200 series FAQ 1)
Recording for Curative Work
___________________________________________Individual Fee Lines“Outside the Columns” if part of Line 1201 or 1203Additional lines can be added if necessary by separate page
95
HUD1 – Page Two, 1300 series1300. Additional Settlement Charges
96
HUD1 – Page Two, Line 13011301. Required Services that You can shop for(HUD‐1 – 1300 series FAQ 1, 2 & 4)
All Charges for services that Originator requires but that Borrower can chose the service provider (except title services and title insurance)
Pest InspectionSurvey
97
HUD1 – Page Two, Line 13011301. Required Services that You can shop for
Roll‐up Line“Inside the Columns”Does include Itemized Required Services disclosed “outside the columns”in Lines 1302, 1303 and 1300s
Disclosed in Block 6 on GFE10% Tolerance Bucket – aggregate totalUnlimited Tolerance Bucket – if Borrower chooses a title/settlement agent not on the listIf Originator permits Borrower to shop for a service provider, must provide at least one option on the service provider list given to Borrower at time GFE is disclosedFees payable to service provider
HUD Line 1301 = GFE Block 6= 10% Tolerance Bucket
98
HUD1 – Page Two, Line 1302, 13031302, 1303 – Blank lines for Required Services that You can shop for
Itemization of each Charge for services that Originator requires but that Borrower can chose the service provider(HUD‐1 – 1300 series FAQ 3)
Pest InspectionSurvey
99
HUD1 – Page Two, Line 1302, 13031302, 1303 – Blank Lines for Required Servicesthat You can shop for
Individual Fee Line“Borrower Responsible” Fee – typical borrower costs
“Outside the Columns”, no matter who is actually paying fee“Rolls up” into Line 1301
“Seller Responsible” Fee – typical seller cost“Inside the Columns” on 1302 & 1303 in Seller column
if paid by seller and not disclosed on GFE
100
HUD1 – Page Two, Line 1304‐1399Blank lines for additional fees in 1300 series
101
HUD1 – Page Two, Line 1304‐1399Blank lines for additional fees in 1300 series
Any Charges for additional fees that are not included in a specific category and were not required to be disclosed on GFE (HUD‐1 – 1300 series FAQ 1 & 5)
Home Warranty FeeHOA Transfer FeePre‐sale Inspections________________________________________________________
Individual Fee Lines“Inside the Columns” if not part of Line 1301Payable to the appropriate service providerAdditional lines can be added if necessary by separate pageNot Disclosed on GFE, if not required by Lender or Title as a part of the loan or settlement transaction
102
HUD1 – Page Two, Line 14001400. Total Settlement Charges
Total of all fees in Borrower’s columnAmount is carried forward to HUD1 Page 1 Line 103
Total of all fees in Seller’s columnAmount is carried forward to HUD1 Page 1 Line 502
103
HUD1 Roll‐up LinesROLL‐UP FEE
HUD LINE NUMBER(INSIDE COLUMN)
INDIVIDUAL FEES THAT ROLL‐UP
(OUTSIDE COLUMN)
703 701, 702
801 808 – 899 feesoutside column
1001 1001 ‐ 1099
1101 1102, 1104,1109 – 1199 feesoutside column
1201 1202,1206 – 1299 recording fees
outside column
1203 1204, 12051206 – 1299 transfer taxes
outside column
1301 1302, 13031304 – 1399
outside column104
HUD1, Page ThreeComparison Charts =Tolerance Buckets
105
HUD1, Page ThreeComparison Charts =Tolerance Buckets
Estimated Feesdisclosed at application on GFE Page 2
vs.Actual Fees
collected at closing on HUD1 Page 2
(HUD‐1 – Page 3 FAQ 3 , 4, 8 & 14)
106
HUD1 – Page ThreeCharges that Cannot Increase
O% Tolerance‐ Estimated Fees disclosed on GFE cannot increase at settlement on
HUD1
‐ Origination Fees (GFE 1/801)‐ Credit/Charge (GFE 2/802)‐ Adjusted Origination (GFE A/803)‐ Transfer Taxes (GFE 8/1203)
‐ Individual Block tolerance, not an aggregate total (Section 4 and 5 –Right to cure and tolerance violations FAQ 10)
‐ Dollar for Dollar Cure required if tolerance violation and must be reflected on HUD1
‐ Must be done at closing or no more than 30 calendar days after closing
HUD1 – Page ThreeCharges that Cannot Increase
O% Tolerance
HUD1 – Page ThreeCharges That in Total Cannot Increase More Than 10%
1O% Tolerance‐ Total of Estimated Fees disclosed on GFE cannot increase at
settlement on HUD1 more than 10% (HUD‐1 – Page 3 FAQ 2 & 8 )
‐ Required Services that Lender selects (GFE 3/804, 805, 806, 800s)‐ Title Services (GFE 4/1101)‐ Owner’s Title Policy (GFE 5/1103)‐ Required Services that Borrower can shop for (GFE 6/1301)‐ Recording Fees (GFE 7/1201)
‐ Aggregate Total‐ Individual Line Items must be reflected‐ Cure required if tolerance violation only for amount over 10%‐ Cure must be reflected on HUD1‐ Must be done at closing or no more than 30 calendar days after closing
HUD1 – Page ThreeCharges That in Total Cannot Increase More Than 10%
10% Tolerance
HUD1 – Page ThreeCharges That Can Change
Unlimited Tolerance‐ Total of Estimated Fees disclosed on GFE can increase at settlement
on HUD1
‐ Initial Escrow Deposit (GFE 9/1001)‐ Daily Interest charges (GFE 10/901)‐ Homeowner’s Insurance (GFE 11/ 903 or 900s*) *Other Property Insurances (Flood,
etc.)
If Borrower selected Service Provider NOT on the List:‐ Title Services (GFE 4/1101)‐ Owner’s Title Policy (GFE 5/1103)‐ Required Services that Borrower can shop for (GFE 6/1301)
‐ Individual Line Items must be reflected ‐ No Cure Required
HUD1 – Page ThreeCharges That Can Change
Unlimited Tolerance
Service Provider ListIf Borrower chooses a Service Provider
On the List ‐ 10% Tolerance Bucket – aggregate totalNOT on the List – Unlimited Bucket
If List not provided or no provider listed for services in Block 4, 5 or 6
Subject to 10% Tolerance Bucket – aggregate totalOriginator does not get benefit of Unlimited Bucket if they have not allowed Borrower to shop for services
Provider must beQualified service provider or Originator can rejectAble to provide service in Borrower’s area
113
The Bucket ListGFE BLOCK NUMBER HUD LINE NUMBER
or HUD SERIESTOLERANCE BUCKET
Block 1 801 0%
Block 2 802 0%
Block A 803 0%
Block 3 804, 805, 806, 807, 800s902, 900s
10%
Block 4* 1101, 1102, 1104, 1100s 10%
Block 5* 1103 10%
Block 6* 1301, 1300s 10%
Block 7 1201, 1202, 1200s 10%
Block 8 1203, 1204, 1205, 1200s 10%
Block 9 1001 Unlimited
Block 10 901 Unlimited
Block 11 903, 900s Unlimited*If provider not on the List *Unlimited
114
Cures of Tolerance ViolationsIf Amount exceeds tolerance limitation, it is the responsibility of Lender to cure and borrower always receives tolerance correction (Section 4 and 5 – Right to cure and tolerance violations FAQ 2, 5 & 13)
Cure can be made by:Offset any increase with a credit/reimbursement (Section 4 and 5 – Right to cure and tolerance violations FAQ 12)
Reducing Fee (Section 4 and 5 – Right to cure and tolerance violations FAQ 9)
Cure TimeframeAt closing and notated on HUD1Within 30 calendar days of closing and revised HUD1 issued
(Section 4 and 5 – Right to cure and tolerance violations FAQ 1, 3 )
115
Cures of Tolerance ViolationsHUD1 Page 3 ‐ 0% Tolerance Bucket
HUD1 Page 1 – Cure Credit – 200 series
116
HUD-1 Page 3 – FAQ #12 –states that cure from Page 1 should be carried over to HUD1 Page 3
Cures of Tolerance ViolationsHUD1 Page 3 ‐ 10% Tolerance Bucket
HUD1 Page 1 – Cure Credit – 200 series
117
HUD-1 Page 3 – FAQ #12 –states that cure from Page 1 should be carried over to HUD1 Page 3
HUD1 – Page Three, Loan Terms
118
HUD1 – Page Three, Loan TermsLender must provide this information in a format that permits theSettlement Agent to simply enter the necessary information in theappropriate spaces, without the Settlement Agent having to refer to
loan documents. (HUD‐1 – Page 3 FAQ 1 & 13)
Suggestions:1. Provide Sample or Pro forma HUD12. Provide an Addendum to Closing Instructions with this specific loan term information in similar format
HUD1 Page 3 does not need to be given to the Seller. (HUD1
General FAQ 4 & HUD‐1 – Page 3 FAQ 7)
119
HUD1 – Page Three, Loan Terms
120
HUD1 – Important Things to KnowTo properly complete the HUD1, Lender and Settlement Agent must know the following:
Is the fee a “borrower responsible” or “seller responsible” fee?
Was the fee disclosed on the GFE?
What Block Number was fee disclosed in on GFE?
What was the estimated amount of fee disclosed on GFE?
Did Lender fail to disclose on GFE as required?
123
HUD1 – Important Things to KnowTo properly complete the HUD1, Lender and Settlement Agent must know the following:
What Line Number should fee be disclosed in on HUD1?
What is the actual amount of fee to be collected/disclosed on HUD1?
Is it an individual line item fee or is it a part of a roll‐up line item fee?
Did the Borrower choose a Service Provider NOT on the List?
124
HUD1 – Important Things to KnowCannot change any Line Item label
Two loans – Two HUD1s
Old GFE – Old HUD1, New GFE – New HUD1
Settlement Agent does not have to stop closing if tolerance is violated; however, it is recommended that any violation be curedat closing.
Lender cannot pressure Settlement Agent or any Service Provider to reduce their charges to “cover the difference” in order to bring costs into compliance with tolerance limitations (RESPA Section 8a) (Section 4 and 5 – Right to cure and tolerance violations FAQ 6)
125
HUD1 – Items that can be Added to FormDate or Signature linesAdditional Pages (HUD1‐General FAQ 5 & 10)
Additional Lines
126
HELP?
Refer to RESPA Final Rule
Refer to RESPA Frequent Asked Questions (FAQs)
www.HUD.govwww.HUD.gov/RESPA/RESPA
127
A. Settlement Statement (HUD-1)
HUD-1Previous editions are obsolete Page 1 of 3
OMB Approval No. 2502-0265
( )
B. Type of Loan
6. File Number: 7. Loan Number: 8. Mortgage Insurance Case Number:1. FHA 2. RHS 3. Conv. Unins.
4. VA 5. Conv. Ins.
C. Note: This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown. Items marked“(p.o.c.)“ were paid outside the closing; they are shown here for informational purposes and are not included in the totals.
D. Name & Address of Borrower: E. Name & Address of Seller: F. Name & Address of Lender:
G. Property Location: H. Settlement Agent: I. Settlement Date:
Place of Settlement:
The Public Reporting Burden for this collection of information is estimated at 35 minutes per response for collecting, reviewing, andreporting the data. This agency may not collect this information, and you are not required to complete this form, unless it displays acurrently valid OMB control number. No confidentiality is assured; this disclosure is mandatory. This is designed to provide the parties toa RESPA covered transaction with information during the settlement process.
J. Summary of Borrower’s Transaction K. Summary of Seller’s Transaction
100. Gross Amount Due from Borrower 400. Gross Amount Due to Seller
101. Contract sales price 401. Contract sales price
102. Personal property 402. Personal property
103. Settlement charges to borrower (line 1400) 403.
104. 404.
105. 405.
Adjustment for items paid by seller in advance Adjustments for items paid by seller in advance106. City/town taxes to 406. City/town taxes to
107. County taxes to 407. County taxes to
108. Assessments to 408. Assessments to
109. 409.
110. 410.
111. 411.
112. 412.
120. Gross Amount Due from Borrower 420. Gross Amount Due to Seller
200. Amounts Paid by or in Behalf of Borrower 500. Reductions In Amount Due to Seller201. Deposit or earnest money 501. Excess deposit (see instructions)
202. Principal amount of new loan(s) 502. Settlement charges to seller (line 1400)
203. Existing loan(s) taken subject to 503. Existing loan(s) taken subject to
204. 504. Payoff of first mortgage loan
205. 505. Payoff of second mortgage loan
206. 506.
207. 507.
208. 508.
209. 509.
Adjustments for items unpaid by seller Adjustments for items unpaid by seller210. City/town taxes to 510. City/town taxes to
211. County taxes to 511. County taxes to
212. Assessments to 512. Assessments to
213. 513.
214. 514.
215. 515.
216. 516.
217. 517.
218. 518.
219. 519.
220. Total Paid by/for Borrower 520. Total Reduction Amount Due Seller
300. Cash at Settlement from/to Borrower 600. Cash at Settlement to/from Seller301. Gross amount due from borrower (line 120) 601. Gross amount due to seller (line 420)
302. Less amounts paid by/for borrower (line 220) ( ) 602. Less reductions in amount due seller (line 520)
303. Cash From To Borrower 603. Cash To From Seller
HUD-1Previous editions are obsolete Page 2 of 3
L. Settlement Charges
700. Total Real Estate Broker Fees
Division of commission (line 700) as follows:
701. $ to
702. $ to
703. Commission paid at settlement
704.
800. Items Payable in Connection with Loan
801. Our origination charge $ (fromGFE #1)
802. Your credit or charge (points) for the specific interest rate chosen $ (fromGFE #2)
803. Your adjusted origination charges (fromGFE A)
804. Appraisal fee to (fromGFE #3)
805. Credit report to (fromGFE #3)
806. Tax service to (fromGFE #3)
807. Flood certification (fromGFE #3)
808.
900. Items Required by Lender to Be Paid in Advance
901. Daily interest charges from to @ $ /day (fromGFE #10)
902. Mortgage insurance premium for months to (fromGFE #3)
903. Homeowner’s insurance for years to (fromGFE #11)
904.
1000. Reserves Deposited with Lender
1001. Initial deposit for your escrow account (fromGFE #9)
1002. Homeowner’s insurance months @ $ per month $
1003. Mortgage insurance months @ $ per month $
1004. Property taxes months @ $ per month $
1005. months @ $ per month $
1006. months @ $ per month $
1007. Aggregate Adjustment –$
1100. Title Charges1101. Title services and lender’s title insurance (fromGFE #4)
1102. Settlement or closing fee $
1103. Owner’s title insurance (fromGFE #5)
1104. Lender’s title insurance $
1105. Lender’s title policy limit $
1106. Owner’s title policy limit $
1107. Agent’s portion of the total title insurance premium $
1108. Underwriter’s portion of the total title insurance premium $
1200. Government Recording and Transfer Charges
1201. Government recording charges (fromGFE #7)
1202. Deed $ Mortgage $ Releases $
1203. Transfer taxes (fromGFE #8)
1204. City/County tax/stamps Deed $ Mortgage $
1205. State tax/stamps Deed $ Mortgage $
1206.
1300. Additional Settlement Charges
1301. Required services that you can shop for (fromGFE #6)
1302. $
1303. $
1304.
1305.
1400. Total Settlement Charges (enter on lines 103, Section J and 502, Section K)
Paid FromBorrower’sFunds atSettlement
Paid FromSeller’sFunds atSettlement
HUD-1Previous editions are obsolete Page 3 of 3
$123456 or %
NNoottee:: If you have any questions about the Settlement Charges and Loan Terms listed on this form, please contact your lender.
Comparison of Good Faith Estimate (GFE) and HUD-1 Charges Good Faith Estimate HUD-1
Charges That Cannot Increase HUD-1 Line Number
Our origination charge # 801
Your credit or charge (points) for the specific interest rate chosen # 802
Your adjusted origination charges # 803
Transfer taxes #1203
Charges That in Total Cannot Increase More Than 10% Good Faith Estimate HUD-1
Government recording charges # 1201
#1201
#1201
#1201
#1201
#1201
#1201
#____
Total
Increase between GFE and HUD-1 Charges
Charges That Can Change Good Faith Estimate HUD-1
Initial deposit for your escrow account #1001
Daily interest charges # 901 $ 2 /day
Homeowner’s insurance # 903
#1201
#1201
#1201
Loan Terms
YYoouurr iinniittiiaall llooaann aammoouunntt iiss $
YYoouurr llooaann tteerrmm iiss years
YYoouurr iinniittiiaall iinntteerreesstt rraattee iiss %
YYoouurr iinniittiiaall mmoonntthhllyy aammoouunntt oowweedd ffoorr pprriinncciippaall,, iinntteerreesstt,, aanndd $ includes
aanndd aannyy mmoorrttggaaggee iinnssuurraannccee iiss Principal
Interest
Mortgage Insurance
CCaann yyoouurr iinntteerreesstt rraattee rriissee?? No. Yes, it can rise to a maximum of XXX%. The first change will be
on [DATEDATE] and can change again every [DATEDATE] after
[DATEDATE] . Every change date, your interest rate can increase or decrease
by XXX%. Over the life of the loan, your interest rate is guaranteed to never be
lloowweerr than XXX% or hhiigghheerr than XXX%.
EEvveenn iiff yyoouu mmaakkee ppaayymmeennttss oonn ttiimmee,, ccaann yyoouurr llooaann bbaallaannccee rriissee?? No. Yes, it can rise to a maximum of $[AMOUNT].
EEvveenn iiff yyoouu mmaakkee ppaayymmeennttss oonn ttiimmee,, ccaann yyoouurr mmoonntthhllyy No. Yes, the first increase can be on and the monthly amount
aammoouunntt oowweedd ffoorr pprriinncciippaall,, iinntteerreesstt,, aanndd mmoorrttggaaggee iinnssuurraannccee rriissee?? owed can rise to $[DATEDATE].
The maximum it can ever rise to is $[DATEDATE].
DDooeess yyoouurr llooaann hhaavvee aa pprreeppaayymmeenntt ppeennaallttyy?? No. Yes, your maximum prepayment penalty is $[AMOUNT .
DDooeess yyoouurr llooaann hhaavvee aa bbaalllloooonn ppaayymmeenntt?? No. Yes, you have a balloon payment of $[AMOUNT] due in
XXX years on [DATEDATE].
TToottaall mmoonntthhllyy aammoouunntt oowweedd iinncclluuddiinngg eessccrrooww aaccccoouunntt ppaayymmeennttss You do not have a monthly escrow payment for items, such as property
taxes and homeowner’s insurance. You must pay these items directly yourself.
You have an additional monthly escrow payment of $[AMOUNT]
that results in a total initial monthly amount owed of $[AMOUNT]. This includes
principal, interest, any mortgage insurance and any items checked below:
Property taxes Homeowner’s insurance
Flood insurance
Good Faith Estimate (GFE)
Good Faith Estimate (HUD-GFE) 1
This GFE gives you an estimate of your settlement charges and loan terms if you are approved for this loan. For more information, see HUD’s Special Information Booklet on settlement charges, your Truth-in-Lending Disclosures, and other consumer information at www.hud.gov/respa. If you decide you would like to proceed with this loan, contact us.
Purpose
Summary of your settlement charges
AYour Charges for All Other Settlement Services (See page 2.) $ BYour Adjusted Origination Charges (See page 2.) $
Summary of your loan
Important dates
Total Estimated Settlement Charges $
OMB Approval No. 2502-0265
Only you can shop for the best loan for you. Compare this GFE with other loan offers, so you can find the best loan. Use the shopping chart on page 3 to compare all the offers you receive.
Shopping for your loan
Your initial loan amount is Your loan term is Your initial interest rate is Your initial monthly amount owed for principal, interest, and any mortgage insurance is
$ years % $ per month
Can your interest rate rise?
Even if you make payments on time, can your loan balance rise?Even if you make payments on time, can your monthly amount owed for principal, interest, and any mortgage insurance rise?
Does your loan have a prepayment penalty?
Does your loan have a balloon payment?
c No c Yes, it can rise to a maximum of %. The first change will be inc No c Yes, it can rise to a maximum of $
c No c Yes, the first increase can be in and the monthly amount owed can rise to $ . The maximum it can ever rise to is $ . c No c Yes, your maximum prepayment penalty is $
Some lenders require an escrow account to hold funds for paying property taxes or other property-related charges in addition to your monthly amount owed of $ . Do we require you to have an escrow account for your loan?c No, you do not have an escrow account. You must pay these charges directly when due.c Yes, you have an escrow account. It may or may not cover all of these charges. Ask us.
Escrow account information
Borrower
Property Address
Date of GFE
Name of Originator
Originator Address
Originator Phone Number
Originator Email
1. The interest rate for this GFE is available through . After this time, the interest rate, some of your loan Origination Charges, and the monthly payment shown below can change until you lock your interest rate.
2. This estimate for all other settlement charges is available through .
3. After you lock your interest rate, you must go to settlement within days (your rate lock period) to receive the locked interest rate.
4. You must lock the interest rate at least days before settlement.
A B+
c No c Yes, you have a balloon payment of $ due in years.
Understanding your estimated settlement charges
Good Faith Estimate (HUD-GFE) 2
Your Adjusted Origination Charges
Your Adjusted Origination Charges
Total Estimated Settlement ChargesA B+
3. Required services that we selectThese charges are for services we require to complete your settlement. We will choose the providers of these services.Service Charge
B Your Charges for All Other Settlement Services
9. Initial deposit for your escrow accountThis charge is held in an escrow account to pay future recurring charges on your property and includes all property taxes, all insurance, and other .
Your Charges for All Other Settlement Services
10. Daily interest chargesThis charge is for the daily interest on your loan from the day of your settlement until the fi rst day of the next month or the fi rst day of your normal mortgage payment cycle. This amount is $ per day for days (if your settlement is ).
A
1. Our origination charge This charge is for getting this loan for you. 2. Your credit or charge (points) for the specifi c interest rate chosen c The credit or charge for the interest rate of % is included in
“Our origination charge.” (See item 1 above.) c You receive a credit of $ for this interest rate of %. This credit reduces your settlement charges. c You pay a charge of $ for this interest rate of %. This charge (points) increases your total settlement charges. The tradeoff table on page 3 shows that you can change your total settlement charges by choosing a different interest rate for this loan.
11. Homeowner’s insurance This charge is for the insurance you must buy for the property to protect from a loss, such as fi re.
Policy Charge
Some of these charges can change at settlement. See the top of page 3 for more information.
4. Title services and lender’s title insuranceThis charge includes the services of a title or settlement agent, for example, and title insurance to protect the lender, if required.
5. Owner’s title insurance You may purchase an owner’s title insurance policy to protect your interest in the property.6. Required services that you can shop for
These charges are for other services that are required to complete your settlement. We can identify providers of these services or you can shop for them yourself. Our estimates for providing these services are below.Service Charge
7. Government recording chargesThese charges are for state and local fees to record your loan and title documents.
8. Transfer taxesThese charges are for state and local fees on mortgages and home sales.
$
$
$
These charges cannot increase at settlement:
Our origination charge
Your credit or charge (points) for the specifi c interest rate chosen (after you lock in your interest rate)
Your adjusted origination charges (after you lock in your interest rate)
Transfer taxes
The total of these charges can increase up to 10% at settlement:
Required services that we select
Title services and lender’s title insurance (if we select them or you use companies we identify)
Owner’s title insurance (if you use companies we identify)
Required services that you can shop for (if you use companies we identify)
Government recording charges
These charges can change at settlement:
Required services that you can shop for (if you do not use companies we identify)
Title services and lender’s title insurance (if you do not use companies we identify)
Owner’s title insurance (if you do not use companies we identify)
Initial deposit for your escrow account
Daily interest charges
Homeowner’s insurance
Using the tradeoff table
Good Faith Estimate (HUD-GFE) 3
InstructionsThis GFE estimates your settlement charges. At your settlement, you will receive a HUD-1, a form that lists your actual costs. Compare the charges on the HUD-1 with the charges on this GFE. Charges can change if you select your own provider and do not use the companies we identify. (See below for details.)
Understanding which charges can change at settlement
In this GFE, we offered you this loan with a particular interest rate and estimated settlement charges. However:
• If you want to choose this same loan with lower settlement charges, then you will have a higher interest rate.• If you want to choose this same loan with a lower interest rate, then you will have higher settlement charges. If you would like to choose an available option, you must ask us for a new GFE. Loan originators have the option to complete this table. Please ask for additional information if the table is not completed.
Your initial loan amount
Your initial interest rate 1
Your initial monthly amount owed
Change in the monthly amount owed from this GFE
Change in the amount you will pay at settlement with this interest rate
How much your total estimated settlement charges will be
The loan in this GFE
You will pay $ less every month
You will pay $ more every month
The same loan with lower settlement charges
The same loan with a lower interest rate
1For an adjustable rate loan, the comparisons above are for the initial interest rate before adjustments are made.
Use this chart to compare GFEs from different loan originators. Fill in the information by using a different column for each GFE you receive. By comparing loan offers, you can shop for the best loan.
Using the shopping chart
This loan Loan 2 Loan 3 Loan 4
Loan originator name
Initial loan amount
Loan term
Initial interest rate
Initial monthly amount owed
Rate lock period
Can interest rate rise?
Can loan balance rise?
Can monthly amount owed rise?
Prepayment penalty?
Balloon payment?
Total Estimated Settlement Charges
Some lenders may sell your loan after settlement. Any fees lenders receive in the future cannot change the loan you receive or the charges you paid at settlement.
If your loan is sold in the future
Your settlement charges will increase by $
Your settlement charges will be reduced by $$$
$
$
$
$
$
$
$
No change
No change
%%%
A. Settlement Statement (HUD-1)
HUD-1Page 1 of 3Previous edition are obsolete
B. Type of Loan
J. Summary of Borrower’s Transaction
100. Gross Amount Due from Borrower
C. Note:
400. Gross Amount Due to Seller
This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown. Items marked “(p.o.c.)” were paid outside the closing; they are shown here for informational purposes and are not included in the totals.
401. Contract sales price
106. City/town taxes to
to
to
to
to
to
to
to
to
to
to
to
406. City/town taxes
203. Existing loan(s) taken subject to 503. Existing loan(s) taken subject to
212. Assessments 512. Assessments
302. Less amounts paid by/for borrower (line 220) 602. Less reductions in amounts due seller (line 520)( ) ( )
213. 513.
214. 514. 215. 515. 216. 516.
218. 518.
217. 517.
219. 519.
102. Personal property
101. Contract sales price
402. Personal property
107. County taxes 407. County taxes
204. 504. Payoff of first mortgage loan
103. Settlement charges to borrower (line 1400) 403.
108. Assessments 408. Assessments
205. 505. Payoff of second mortgage loan
104. 404.
109. 409.
206. 506.
201. Deposit or earnest money 501. Excess deposit (see instructions)
210. City/town taxes 510. City/town taxes
105.
1.
D. Name & Address of Borrower:
G. Property Location:
E. Name & Address of Seller: F. Name & Address of Lender:
I. Settlement Date:H. Settlement Agent:
Place of Settlement:
2. 3.FHA RHS Conv. Unins. 6. File Number: 7. Loan Number: 8. Mortgage Insurance Case Number:
VA Conv. Ins.4. 5.
405.
110. 410.
207. 507.
202. Principal amount of new loan(s) 502. Settlement charges to seller (line 1400)
211. County taxes 511. County taxes
301. Gross amount due from borrower (line 120) 601. Gross amount due to seller (line 420)
111. 411.
208. 508.
112. 412.
209. 509.
120. Gross Amount Due from Borrower 420. Gross Amount Due to Seller200. Amount Paid by or in Behalf of Borrower 500. Reductions In Amount Due to seller
Adjustments for items unpaid by seller Adjustments for items unpaid by seller
220. Total Paid by/for Borrower 520. Total Reduction Amount Due Seller
303. Cash 603. CashFrom ToTo Borrower From Seller
300. Cash at Settlement from/to Borrower 600. Cash at Settlement to/from Seller
Adjustment for items paid by seller in advance Adjustment for items paid by seller in advance
K. Summary of Seller’s Transaction
OMB Approval No. 2502-0265
The Public Reporting Burden for this collection of information is estimated at 35 minutes per response for collecting, reviewing, and reporting the data. This agency may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. No confidentiality is assured; this disclosure is mandatory. This is designed to provide the parties to a RESPA covered transaction with information during the settlement process.
HUD-1Page 2 of 3Previous edition are obsolete
L. Settlement Charges
700. Total Real Estate Broker Fees
800. Items Payable in Connection with Loan
900. Items Required by Lender to be Paid in Advance
1000. Reserves Deposited with Lender
1100. Title Charges
1200. Government Recording and Transfer Charges
1300. Additional Settlement Charges
702. $ to
to
802. Your credit or charge (points) for the specific interest rate chosen
902. Mortgage insurance premium for months to
1002. Homeowner’s insurance months @ $ per month $
1102. Settlement or closing fee
1202. Deed $ Mortgage $ Release $
1302.
701. $
801. Our origination charge
901. Daily interest charges from to @ $ /day
1001. Initial deposit for your escrow account
1101. Title services and lender’s title insurance
1201. Government recording charges
1301. Required services that you can shop for
703. Commission paid at settlement
Division of commission (line 700) as follows :
803. Your adjusted origination charges
903. Homeowner’s insurance for years to
1003. Mortgage insurance months @ $ per month $
1103. Owner’s title insurance
1203. Transfer taxes
1303.
704.
804. Appraisal fee to
904.
1004. Property Taxes months @ $ per month $
1104. Lender’s title insurance
1204. City/County tax/stamps Deed $ Mortgage $
1304.
1005. months @ $ per month $
1105. Lender’s title policy limit $
1205. State tax/stamps Deed $ Mortgage $
1305.
1006. months @ $ per month $
1106. Owner’s title policy limit $
1206.
1007. Aggregate Adjustment -$
1107. Agent’s portion of the total title insurance premium to
1108. Underwriter’s portion of the total title insurance premium to
1109.
1110.
1111.
805. Credit report to
806. Tax service to
807. Flood certification to
808.
809.
810.
811.
Paid FromBorrower’sFunds at
Settlement
Paid FromSeller’s
Funds atSettlement
$
$
$
$
$
$
1400. Total Settlement Charges (enter on lines 103, Section J and 502, Section K)
(from GFE #1)
(from GFE #3)
(from GFE #2)
(from GFE #3)
(from GFE #10)
(from GFE #4)
(from GFE #3)
(from GFE #11)
(from GFE #9)
(from GFE #5)
(from GFE #7)
(from GFE #8)
(from GFE #6)
(from GFE #A)
(from GFE #3)
(from GFE #3)
$
$
HUD-1Page 3 of 3Previous edition are obsolete
Comparison of Good Faith Estimate (GFE) and HUD-1 Charrges
% $ or
Charges That In Total Cannot Increase More Than 10%
Good Faith Estimate
Good Faith Estimate
Good Faith Estimate
Total
Increase between GFE and HUD-1 Charges
HUD-1
HUD-1
HUD-1
Charges That Cannot Increase HUD-1 Line Number
Government recording charges
Charges That Can Change
Your initial loan amount is
Loan Terms
Note: If you have any questions about the Settlement Charges and Loan Terms listed on this form, please contact your lender.
Daily interest charges
Your initial interest rate is
Initial deposit for your escrow account
Your loan term is years
No
No
No
No
Property taxes Homeowner’s insurance
Flood insurance
No
Yes, it can rise to a maximum of %. The first change will be on
Yes, the first increase can be on and the monthly amount
Yes, it can rise to a maximum of $
Yes, your maximum prepayment penalty is $
Yes, you have a balloon payment of $ due in yearson .
You do not have a monthly escrow payment for items, such as property taxes and
You have an additional monthly escrow payment of $
that results in a total initial monthly amount owed of $ . This includes
principal, interest, any mortagage insurance and any items checked below:
homeowner’s insurance. You must pay these items directly yourself.
Principal
Interest
Mortgage Insurance
includes
%
Our origination charge
Your credit or charge (points) for the specific interest rate chosen
Your adjusted origination charges
Transfer taxes
Homeowner’s insurance
Your initial monthly amount owed for principal, interest, and any
mortgage insurance is
Can your interest rate rise?
Even if you make payments on time, can your loan balance rise?
Does your loan have a prepayment penalty?
Does your loan have a balloon payment?
Total monthly amount owed including escrow account payments
Even if you make payments on time, can your monthly
amount owed for principal, interest, and mortgage insurance rise?
$
# 1001
#
# 1201
# 901
#
# 903
#
# 801
#
#
# 802
#
#
# 803
#
#
#
# 1203
$ /day
$
and can change again every after . Every change date, your
interest rate can increase or decrease by %. Over the life of the loan, your interest rate is
guaranteed to never be lower than % or higher than %.
owed can rise to $ . The maximum it can ever rise to is $ .