Posted by Karla/OR on 7/26/13 2:13am
Msg #478083

Inquiring Minds . . .

Does anyone have an answer as to why some HUD statements show in the heading "Estimated," some show "Final," and some show neither???

TIA

Reply by BobbiCT on 7/26/13 6:57am
Msg #478091

"Estimated", "Final", "Revised" on HUD-1

Simple programming/software answer. I work with three different HUD-1 programs at the closing end. NONE of them allow me, as the user, to add the above in the program. It is rubber stamp time if I want to.

At the intial loan officer, underwriter, commitment end the program has "estimated" in it and "revised" (when the estimate is revised).

In 30 years I've never seen a HUD-1 with "Final" printed on it. KISS: The "final" has the closing date, funding date, and all parties have signed it, which may make it redundant. Happy to say in my world "revised final" has never come up; if it isn't correct, borrowers refuse to sign until there is a correct HUD (change is almost always to no cash from borrower to have $XXX+ certified check at signing.

I'd love to hear from others who work with the "system."

Reply by JanetK_CA on 7/26/13 2:10pm
Msg #478147

Re: "Estimated", "Final", "Revised" on HUD-1

I don't work "with the system", but in my part of the state (I've heard that things are done differently in Northern California - go figure...), escrow/title nearly always provides an "estimated" HUD and Settlement Statement. The "Final" is generated at the end (after RTC period) when they fund and monies are actually disbursed. They get a final payoff from the old lender and know what all the miscellaneous fees are going to be at that point, and have confirmed what has and has not already been paid by the borrower(s).

It's also very common to include a refundable pad (which varies, depending on the size of the loan), or as I saw it worded yesterday "buyer funds held for final accounting", to make sure they have enough to cover any surprises or variances. What ever doesn't get used gets returned to the borrowers. (Of course, these days, the variances have to stay within the required legal guidelines, or it triggers re-disclosure, but these kinds of things are usually small amounts relative to the size of the loan.)