Posted by Negrete on 3/15/10 7:58am
Msg #327268

How To Read The New HUD -1 Statement

Thought that some might like this news article.

http://www.ourbroker.com/closing/how-the-read-the-hud-1/

Reply by Linda Juenger on 3/15/10 8:35am
Msg #327274

"So what do we get after 36 years? The new HUD-1 is a vast improvement over the old model. It’s three letter-sized pages long rather than two legal pages"

I am not seeing this. I am seeing 3 if not 4 legal size pages. One is usually a grid which is blank. I also had one just Friday night that did not have the new Hud.

Reply by jba/fl on 3/15/10 9:45am
Msg #327291

Same here - extra page or two. Someone saw one and decided they were all the same? Perhaps that person saw the mutant form.?

Reply by CopperheadVA on 3/15/10 11:30am
Msg #327310

Agree - I'm seeing anywhere from 3 - 5 pages, legal size.

I think it's also confusing for the borrower to see the monthly P&I payment but the REAL payment including escrows is at the bottom of the same page. It should be all together so borrower does not get confused or just sees the P&I number and quits looking, not realizing that it's not the total payment figure.

Reply by cawest/PA on 3/15/10 11:45am
Msg #327318

so agreed and they bank on *us* to explain the entire new form to the borrowers at no extra cost and when we have to be cautious not to UPL

Reply by doglover/CA on 3/15/10 12:08pm
Msg #327323

Yes, I've noticed that more often these days, we are expected to do the job of what lender or escrow should be doing. Borrowers sometimes tell me that they were told that whomever comes( the notary) to bring the papers to be signed would be giving detailed explanations of the documents, whether or not we have had work experience in the mortgage industry, just as if they were doing the signing at an escrow office. One time I had a borrower call the loan officer about a documents that I did not want to get into detailed explanation in order to avoid UPL. The loan officer put me on the phone and told me I was "not doing my job".

Reply by cawest/PA on 3/15/10 12:35pm
Msg #327331

Friday night I had a *closing* where while I was on my way to the customer (after the closing was delayed several times because of wrong docs sent to me with wrong numbers), I had the LENDER calling me to ask to explain to the borrower as of why his loan would be 3000 dollars higher than expected (because of a tax problem etc ..) ... so yes we are expected to do their job and at the same time avoid a UPL (however I was pleasantly surprised that for all my tribulations with this one they added XXX to the original fee and the lender confirmed he would pay that XXX).
But in the end we are not Attorneys and it is quite tricky to find all the correct words that will not implicate us in a potential Suit.

Reply by Mdene_AZ on 3/15/10 1:29pm
Msg #327348

I'm glad I remember that I am the notary who is at the signing table to notarize signatures. I do not have to explain items on docs to BO. I do tell them what the doc is and generally what it contains and council them to call their lender if they question anything listed therein.

Reply by cawest/PA on 3/15/10 3:07pm
Msg #327371

and that is all what we should have to do and now I am wondering since many loans are going thru the internet if that is not the greatest reason as of why some borrowers are so poorly educated on the documents they will see.

Reply by dickb/wi on 3/15/10 2:45pm
Msg #327365

agreed...it's 4 legal size pages......... n/m

Reply by CF on 3/15/10 3:29pm
Msg #327380

Not too sure what the big and mysterious deal is?

The first 2 pages are the same and that is all I really worry about. As for the poster that refers to lender for any questions...wow your signings must take a loooooong time and your profitability must be real low. There is no way that I am not going to answer general questions and point out the obvious that is in black in white to save 20-45 minutes per phone call to their LO, if your even able to get in touch with them. That is not UPL it is the job of a Signing Agent.

Reply by Negrete on 3/15/10 4:53pm
Msg #327404

Re: Not too sure what the big and mysterious deal is?

I know I am about to get blasted but I could not agree more CF.

I wonder if the Title Companies have lowered the fees because of things like this ?

Reply by cawest/PA on 3/15/10 5:08pm
Msg #327406

Re: Not too sure what the big and mysterious deal is?

You might have a point there ... that or the economy

Reply by Claudine Osborne on 3/15/10 9:22pm
Msg #327449

Re: Not too sure what the big and mysterious deal is?

I agree with CF too..Gee if they ask and its in black and white in front of their noses why not point it out?? I does save time..

Reply by JanetK_CA on 3/16/10 4:20am
Msg #327467

Well, I was thinking the same thing, too.

An escrow officer client of mine recently mentioned that she was very frustrated because she was having trouble finding an NSA closer to her area who would do more than just point and sign. I feel that we earn our higher fees (and so did she) by being able to understand the HUD (among other things) and walk a borrower through it without getting into interpretation or giving advice. She felt that for someone to just say "sign here" and shrug their shoulders at any questions, she could just hire the notary at the corner store for the cheap rates we're always complaining about!

These things are not all that complicated and we should be able to deal with the vast majority of the questions that come up - since they usually deal with the same few things anyway. Quite often there are just simple things we can point out to a borrower that will satisfy them about the issue and we never have to bother calling the LO or the EO. If the question is about why a specific number is so much, we have no way of knowing that, for example. But if they are looking at the bottom line (which I find is often the case) wondering why their closing costs are so high, 90% of the time, I find it really has to do with understanding what is and is not included and we are able to work it out on our own.

Like Claudine said, it's right in front of their noses; they just need us to provide a little direction sometimes.