Posted by Dennis D Broadbooks on 12/2/09 8:26am
Msg #312731

New HUD-1 & GFE

I'm inserting links to copies of the new HUD-1 & GFE for review here on NotRot. If this has already been discussed, I apologize in advance. I tried looking for any previous postings & only saw one which didn't go into much detail.

http://bnsllc.com/HUD-1.pdf
http://bnsllc.com/GFE.pdf

Is there not going to be a place for signatures on the HUD-1 on the new form?

Reply by Frances Kany on 12/2/09 8:29am
Msg #312732

I had looked these over before but I have the same question, no signature lines?

Reply by ReneeK_MI on 12/2/09 8:32am
Msg #312734

Up to the Lender and/or title to add if they want them n/m

Reply by Dennis D Broadbooks on 12/2/09 8:34am
Msg #312735

What Kind of Changes...

...are legally allowed to be made to these forms, Renee?

Reply by ReneeK_MI on 12/2/09 9:08am
Msg #312744

Re: What Kind of Changes...

Hmm - well, I'm not an atty so I'm not touching the question as asked, but ... HUD never did require the signatures, not then and not now. (Just as the TILA doesn't require signatures on their required disclosures, but we do regularly see signature lines on these, too.)

You also have state regulations of both the lender and the title/settlement agent to satisfy, not JUST Hud ...and just as we see signature lines (or signature pages) now, I'll be good money we'll keep seeing them.

Reply by Dennis D Broadbooks on 12/2/09 9:28am
Msg #312754

No Attorney Here Either...

...but it would make sense to me there must be a set of regulations somewhere along the line providing legal direction as to what can be done to the basic language of these forms. If signatures can be added, what else? Are individual states allowed to adopt their own version of the form without regard to the federal standard? Inquiring minds would like to know.

Reply by PAW on 12/2/09 9:49am
Msg #312758

Re: No Attorney Here Either...

My understanding is that the form HUD-1/HUD-1a is not explicitly required, but some type of Settlement Statement must be provided. Certain language must also be provided. Many origination and title software packages use a 'locally designed' form, but contain the required elements as specified by HUD & RESPA rules. Signatures are not a required element, as far as I know, but the HUD designed forms do include an optional signature page (formerly page 3 of a HUD-1).

Reply by BrendaTx on 12/2/09 9:53am
Msg #312760

My understanding as well. n/m

Reply by ReneeK_MI on 12/2/09 11:37am
Msg #312795

Dennis - you might enjoy Reg X

(I swear I posted this earlier, but ...guess I only imagined it?!)

Reg X spells out what you're looking for, anyway - in nice, chewy legaleze! =)

Reply by Linda_H/FL on 12/2/09 8:41am
Msg #312738

Settlement Agent Certification missing too...

IMO, any lender with half a brain is going to want borrowers to sign off on the HUD...can't imagine passing a HUD by the borrowers without getting signatures as to acceptance..wow.

Reply by Linda_H/FL on 12/2/09 8:41am
Msg #312739

Settlement Agent Certification missing too...

IMO, any lender with half a brain is going to want borrowers to sign off on the HUD...can't imagine passing a HUD by the borrowers without getting signatures as to acceptance..wow.

Reply by Linda_H/FL on 12/2/09 8:42am
Msg #312740

Woops...sorry... n/m

Reply by Linda_H/FL on 12/2/09 8:36am
Msg #312736

Page 3 of the HUD should be fun at the table!!.. n/m

Reply by PAW on 12/2/09 9:03am
Msg #312743

New HUD Signatures

The HUD-1 and 1a does not contain signatures. It was designed to be used in conjunction with Form OMB No. 2502-0265 which states:

I have carefully reviewed the HUD-1 Settlement Statement and to the best of my knowledge and belief, it is a true and accurate statement of all receipts and disbursements made on my account or by me in this transaction. I further certify that I have received a copy of HUD-1 Settlement Statement.

Signed by all borrowers, buyers and sellers. (HUD-1a is signed by borrowers only since it is used for non-seller transactions.)

Then it is signed and dated by the settlement agent. The form also contains the following:

The HUD-1 Settlement Statement which I have prepared is a true and accurate account of this transaction. I have caused or will cause the funds to be disbursed in accordance with this statement.

(Signature of Settlement Agent) (date)

WARNING: It is a crime to knowingly make false statements to the United States on this or any other similar form. Penalties upon conviction can include a fine or imprisonment. For details see: Title 18 U.S. Code Section 1001 and Section 1010.

Reply by ReneeK_MI on 12/2/09 9:17am
Msg #312748

OMB No. 2502-0265 IS the Hud-1 ...

? now you've confused me!

This is the signature blurb used on the current Huds - most likely will be the same blurb they'll add to the new one, but it's not a Hud Form.

If I had time, I'd look but I suspect the reference to Title Code is Clue #1 - this is likely the regulation (not from HUD) that results in Huds being signed...

Reply by PAW on 12/2/09 9:26am
Msg #312753

Sorry for the confusion

The form number is the same, but it's now page 4 instead of page 3. (I forgot to include "page 3 of 3" in my original post.) A lot of companies use locally generated Settlement Statements or those that are prepared by origination and title software programs. HUD has designed a signature page to be included, but has not made it mandatory that it be used. I'm sure, as time progresses, we will see an increase in locally designed and prepared Settlement Statements, since the use of the HUD form isn't mandatory either. Only the contents of the form is what is required to appear on any locally designed forms.

Reply by RobinS/MI on 12/2/09 10:33am
Msg #312767

Re: Sorry for the confusion

Paul, My understanding of the use of the HUD if the loan is a Freddie Mac or Fannie May, it is a requirement for the NEW HUD to be used.

Reply by Claudine Osborne on 12/2/09 10:46am
Msg #312771

Re: Training

I was fortunate enough to attend a live training class on the GFE & HUD with First American title and it was very informative!

The signature is not required, but we will be seeing lenders adding this. There are a lot of changes to the HUD. The GFE info will be incorporated into this and I believe it will be confusing for all of us for a while!

Reply by Claudine Osborne on 12/2/09 10:47am
Msg #312773

Re: Training

Forgot to mention the fact that all loan info, payments, interest etc will be on here too..No need to find this info in advance for bo. I like this very much!

Reply by ReneeK_MI on 12/2/09 11:24am
Msg #312787

If the loan falls under RESPA regulations ...

then the new forms (Hud/GFE) must be used - that would include FHA, VA, and any federally related mortgage.

It says (in HUD's FAQ page) that one of the changes to the regulations is that these specific forms must be used, although there are some very stingent rules allowing for some very logical 'revisions' - allowing, for example. the settlement agent to incorporate their name/logo, allowing them to add a few lines in specific places, allowing variences in font/page size, allowing for the addition of signature lines/verbiage and of course, anything required to satisfy state/local regulations.

The GFE they seem to be even more rigid on - disallowing the use of varient forms or even very 'logical' changes specific to certain products. One of the examples used was in the event of loan payments being made other than monthly - they require the information to be RE-CALCULATED relative to monthly, rather than using the 'actual' numbers.

The Hud-1 to be used - the one on HUD's site - is 3 pages, haven't seen the one Paul's referring to?

I have to say ...I find it unsettling to see Robin's name on posts. =(

Reply by PAW on 12/2/09 11:53am
Msg #312799

Re: Sorry for the confusion

I believe that is true. But the point is, it is not a HUD/RESPA requirement, it is a lender choice which format they wish to use.

Reply by Laura_V on 12/2/09 10:51am
Msg #312776

Thanks, Dennis.

I'll post the links on my websites when I come up for air - prob at Xmas LOL!

Reply by RobinS/MI on 12/2/09 5:54pm
Msg #312852

The New Hud is going to be used by most title companies, so you need to be prepared on the changes that go in effect January 1, 2010.

Reply by Tess on 12/2/09 11:41am
Msg #312797

Re: I love it!


Page 3 will give the borrower a one page breakdown with all the important information on the type of loan they are getting, upfront. They will know immediately if they were fed a load of bull patties on the type of loan they have, or if they were fed any on the GFE figures.

However, I feel this may increase our time at the table, as the borrowers may want to pull out the GFE they previously received, and compare it to what they see on page 3. I also fear that we may see some that are not filled out, then what?

Reply by Claudine Osborne on 12/2/09 6:08pm
Msg #312857

Re: I love it!

We can expect to see these new forms before the end of Dec..

Reply by JanetK_CA on 12/6/09 12:31am
Msg #313208

Re: I love it!

I've already been seeing borrowers pulling out their GFE and comparing line by line. Must be lots of engineer types in my neck of the woods... (jk) Actually, I've seen this increase since the so-called mortgage meltdown. Lots of savvy borrowers are now paying much more attention to the details. Probably a very healthy thing, however frustrating it might be sometimes.