Join  |  Login  |   Cart    

Notary Rotary
Disclosure of the HUD prior to refinance signing question
Notary Discussion History
 
Disclosure of the HUD prior to refinance signing question
Go Back to November, 2013 Index
 
 

Posted by Notary On The Go on 11/4/13 11:41am
Msg #491193

Disclosure of the HUD prior to refinance signing question

Can someone smarter than me please explain this for me? I thought lenders were required to disclose the HUD at least one day prior to the closing. This instruction taken from the HUD webpage is confusing me. I'm just wondering why borrowers are not provided with a copy of the HUD prior to our appearance at the signing table.

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/ramh/res/sc2sectg


HUD-1 Settlement Statement. One business day before the settlement, you have the right to inspect the HUD-1 Settlement Statement. This statement itemizes the services provided to you and the fees charged to you. This form is filled out by the settlement agent who will conduct the settlement. Be sure you have the name, address, and telephone number of the settlement agent if you wish to inspect this form. The fully completed HUD-1 Settlement Statement generally must be delivered or mailed to you at or before the settlement. In cases where there is no settlement meeting, the escrow agent will mail you the HUD-1 after settlement, and you have no right to inspect it one day before settlement.

Reply by Linda_H/FL on 11/4/13 11:48am
Msg #491196

They have the right to see it...

and upon request, yes, Lenders are REQUIRED to disclose it - they can't tell the borrower "you'll see it at the table" -

I don't know if there's any "law" that requires them to PROVIDE it 24 hours in advance. The latest regs of a couple years ago may have spelled that out..I'm not clear on that.

Reply by HSH/WA on 11/4/13 12:30pm
Msg #491204

Re: If there is any money involved, ie a check needed

or a big sum coming back I always ask if that is what they are expecting? Check it out before you print or call the BO; then as part of the confirmation mention the money aspect. Sometimes that leads to the BO calling their LO and getting it straightened out before you print and drive.

Reply by Notary On The Go on 11/4/13 12:40pm
Msg #491205

problem is no one is calling the borrower and BO is in the field and says they should have been provided a copy. TC says yes, it must have been sent. Lender says no it doesn't.

Isn't this wonderful. But, I'm sure a code of conduct for notaries will solve "what goes on at the signing table"

Reply by HSH/WA on 11/4/13 12:59pm
Msg #491206

Re: If BO is stating he should have been

sent a HUD1, tell him to work it out with his LO and let you know if he wants you to print and drive. Don't waste your time and money unless the BO is ready and willing to sign. If the BO wants to get pissy over the "law", big red flag. Best to turn it back, fee can equal the potential down the road problems.

Reply by Jack/AL on 11/4/13 4:46pm
Msg #491222

Re: If BO is stating he should have been

In most cases, I'm doing a signing of documents for a refinance. I remind borrowers that they have not one, but three days to reconsider, and to get their concerns resolved by contacting their LO. They might not have seen it one day before SIGNING, but they're seeing it at least three calendar days before the closing. The actual closing, disbursement, funding will not happen until after the three day right-to-cancel has ended. I've not had any problem on this matter at a purchase or sale. Typically, folks involved have been curious and in contact with the sales persons, loan officers, etc., to the point of kinda/sorta/maybe at least knowing what to expect on the HUD-1.

Reply by CarolF/NC on 11/4/13 6:39pm
Msg #491250

Jack/AL be careful, I believe that is a violation of the new

Certified Signing Specialist code of conduct

3.7. Exercise of Rescission Option
The Certified Signing Specialist will not recommend that a borrower proceed with the signing of any closing document on the grounds that the rescission option provides three business days to thoroughly read loan documents, ask questions of the lender and decide whether to consummate the transaction, but will recommend that the borrower contact the lender’s representative immediately before signing the documents.

Reply by CarolF/NC on 11/4/13 6:41pm
Msg #491251

Re: If BO is stating he should have been

only that will violate the new Code of ConductSmile

3.7. Exercise of Rescission Option
The Certified Signing Specialist will not recommend that a borrower proceed with the signing of any closing document on the grounds that the rescission option provides three business days to thoroughly read loan documents, ask questions of the lender and decide whether to consummate the transaction, but will recommend that the borrower contact the lender’s representative immediately before signing the documents.

Reply by jba/fl on 11/4/13 6:42pm
Msg #491252

There is, at this time, no code of conduct and/or CSS. Don't

jump the gun here. don't be part of the problem


Reply by CarolF/NC on 11/4/13 7:06pm
Msg #491257

Oh but there is a code of conduct, just not

enforceable and there is a code of conduct because the mortgage industry is not doing their job, so let's pile more responsibility on the notary that we want to pay $50.00 to.

Reply by JanetK_CA on 11/4/13 4:47pm
Msg #491224

Re: If BO is stating he should have been

I can't count how many times the reason given for late docs is that title is waiting for HUD approval from the lender. I've also been told that it isn't automatic that the LO is sent a copy of the HUD once it's finalized. (Or at least approved. In my part of the country - and state - the HUD is very frequently labeled "estimated" for refi's. It gets finalized when the closing agent pulls a final payoff demand and is preparing for disbursement.

But I almost always recommend that a borrower try to get a copy of the HUD prior to our appointment and review it with the LO before we meet. I've had several occasions where there were issues and another HUD is generated before I even leave for the appointment. This has resulted in a good number of grateful borrowers. It sure saves a lot of my time, too. Of course, it's not always possible, but it's worth trying for, in my experience.

Reply by HSH/WA on 11/4/13 10:32pm
Msg #491289

Re: So sweet if we could email the HUD1 to BO?

But, in my experience, it only becomes an issue if BO is writing a check or is getting back more than a few bucks.


 
Find a Notary  Notary Supplies  Terms  Privacy Statement  Help/FAQ  About  Contact Us  Archive  NRI Insurance Services
 
Notary Rotary® is a trademark of Notary Rotary, Inc. Copyright © 2002-2013, Notary Rotary, Inc.  All rights reserved.
500 New York Ave, Des Moines, IA 50313.