Posted by BetsyMI on 7/8/06 1:01pm
Msg #131777

"Estimated" HUD in package

In many closing packages I will find both the latest HUD and another that says something like "estimated" HUD. The figures usually don't agree with the figures on the latest HUD.

I usually do not have the borrowers sign the "estimated" HUD and I've never been called about it. Do you all do the same?

I also have seen sometimes 2 or 3 1003's in the package. Do you have them sign both if there are two?

Reply by MistarellaFL on 7/8/06 1:24pm
Msg #131781

I have found an estimated HUD to be common in CA lender packages as the "final HUD".
I do have them sign all the HUDs, final and estimated, whatever is in the loan package.
I also have them sign as many 1003's as are provided in the package.
It is my understandng that the paperwork has been forwarded to me to have the
brw's sign, unless it has been dictated to me to have them waive signing certain forms
that have been designated by the hiring party.

Reply by BetsyMI on 7/8/06 1:40pm
Msg #131782

I agree that I try to have all docs signed but it's difficult to try to encourage someone to sign an "estimated" HUD with figures that are different than the final HUD. I have found borrowers to be somewhat leary of signing off on figures that are not accurate, as would I be.

Reply by MistarellaFL on 7/8/06 1:49pm
Msg #131785

Even the final HUD is truly an estimated HUD, because if final payoff amounts are
different than what is listed, the brw's cash out may be higher or lower than the
amt. listed, and they would be responsible for any underpayments to their creditors.
Additionally, if it is a previous HUD, I direct them to the actual date listed on that form,
and show them that these were figures based upon THAT DAY's totals. They were
probably supposed to close on THAT particular day, but for whatever reason, they didn't.
The one that is valid for correct info, is the one with the signing date.
Never had a brw refuse to sign an earlier dated one, but if they did, I'd proceed with the signing and put a sticky note on it with the brw's objection(s) and their signature on the
note.
Not to be construed as legal advice.

Reply by Becca_FL on 7/8/06 1:55pm
Msg #131786

Many times the estimated HUD is included with the lenders closing instructions. The estimated HUD may not have all payoffs, title fees and other fees. Unless it is a CA TC the estimated HUD from the lender serves as a guide for the TC. Some lenders are very picky about what lines are to show certain fees. I do have all docs in the pkg signed. Now, CA uses estimated HUDs and generally will send the borrower the final HUD when the loan funds.

Hope this helps.

Reply by BetsyMI on 7/8/06 1:56pm
Msg #131787

Yes it does help. Thank you both!

Reply by PAW on 7/8/06 10:29pm
Msg #131838

Just to throw in my two cents on this subject.

I don't have the borrowers sign the "lender's" HUD if it is included in the lender's package. But I do have them sign the title companies HUD. I have found that if it is a CA lender and/or title company, most often it will be an Estimated HUD because CA is an escrow funding state. FL, on the other hand, is a table funding state and therefore the "final" HUD is the commonly accepted and preferred document at the signing. I've actually had two cases where the borrowers flatly refused to sign the HUD (and continue the signing of the other documents) until a FINAL HUD was provided to them. One borrower (a FL licensed Real Estate attorney) refused and was told that a final HUD would not be prepared until funding. The attorney said he would find another lender, which he did.

As for multiple 1003's - that's pretty common as well. Technically, the 1003 is supposed to be kept up to date throughout the loan process. If the terms change, a new 1003 is supposed to be created. More often than not, what I see is a broker's 1003 with the preliminary stuff that the borrowers never signed and then a final 1003 with the correct loan information.

Along these same lines, I see more and more broker docs being included with all the other docs. I guess brokers aren't getting them signed when they should or the not telling the borrowers they really do need to sign them and get them back to the broker. Of course, there's always the case where the broker never actually provided them in the first place. (I hope I'm never guilty of that as I pursue my new supplemental career.)