Posted by BarbaraL_CA on 10/20/06 8:53pm
Msg #154024

HUD Failed QC

Has anyone ever come across this before?
The final HUD had in light gray block print diagonally across the page "HUD FAILED QC" and at the bottom right corner in the same light gray block print it said "DO NOT CLOSE"

I had the borrower call the Title Co. about it and they said not to worry about it, she could go ahead and sign it. ..so, borrower signed it. The borrower told the Title Co. that the notary has done many of these and never came across this before, and the girl at the Title Co. said she had never seen it before either.

Quite honestly, if I were the borrower I wouldn't have signed it.

Reply by Kate/CA on 10/20/06 8:59pm
Msg #154026

If I was TC I'd be calling the lender.

Reply by SueW/Tn on 10/20/06 9:07pm
Msg #154027

Would you keep us posted??? n/m

Reply by BarbaraL_CA on 10/20/06 9:14pm
Msg #154029

Re: Would you keep us posted???

If there is a problem with it the borrower will let me know. I've done 5 signings for this borrower in the past. If I don't hear from the borrower then I won't know. I may call her in a week or so and see if anything came of it. I'm curious also.

Reply by JanetK_CA on 10/21/06 1:46am
Msg #154107

I had the same experience - from a tc outside of CA. I got basically the same response (I called the title company since I saw this before I left for the appt.), but I think there was also some reference to CA being an escrow state and that it was still a preliminary doc - equiv to our common "Estimated " Settlement Statement.

Reply by BarbaraL_CA on 10/21/06 10:24am
Msg #154166

This was an Arizona Title Co. and the property was in Arizona. Borrower in CA.

Reply by faceynotary on 10/21/06 10:08am
Msg #154155

I agree. If I were the borrower, I would not have signed it either. A failed HUD- that doesn't even sound kosher...

Reply by faceynotary on 10/21/06 10:08am
Msg #154156

I agree. If I were the borrower, I would not have signed it either. A failed HUD- that doesn't even sound kosher...

Reply by Gary_CA on 10/21/06 1:00pm
Msg #154235

Re: HUD Failed QC... What?

If the HUD failed QC (whatever the hell that means) why print and/or send it on?

I mean if the hud's just plain bad (i.e. doesn't balance) then you fix it right?

And if failed QC means it exposes some underwriting problem... then you pick up the phone and everything comes to a screeching halt, right?

But tag it and print it???? and obviously they have a template for it with the grey block and all.

Sometimes I think the big banks have a janitor smoking pot next to the A/C intake duct at their underwriting department.

Reply by BarbaraL_CA on 10/21/06 3:41pm
Msg #154264

Re: HUD Failed QC... What? - I agree...

these docs were sent over night to the borrower, so I didn't even see them until I was with the borrower... unreal, huh?