Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
MYSTERIES OF THE NEW HUD-1 UNCOVERED
August 18, 2009
UNCOVERED
Jim Gosdin, Deborah Yahner and Jennifer Dumas
[email protected]@stewart.comy @[email protected]
©2008 Stewart.
Purpose of RESPA Reform
Promote consumer
Rollups (FKA
loan shopping
(FKA GMPA)
Loan SummarySummary
(FKA Transcript)
©2009 Stewart.
Changes from Proposal
No Closing Script
No Volume Based
DiscountsDiscounts
30-Day Cure
Average Charge For All
©2009 Stewart.
Key Dates
January 16, July 16, January 1, y ,2009
y ,2009 (?)
y ,2010 +
(?)
Six / Twelve Infinity and
©2009 Stewart.
Months (?) Beyond
GFEGFEPage 1
©2009 Stewart.
GFE Page 1
C tibilit ith HUD 1/1ACompatibility with HUD-1/1A
Loan Terms
Summary of Settlement Costs (A+B) (Total Est. Charges)
©2009 Stewart.
GFEPage 2
©2009 Stewart.
GFE Page 2
Line 1 (origination): HUD 801
Li 2 ( dit/ h ) HUD 802Line 2 (credit/charge): HUD 802
Line A (adjusted orig.): HUD 803Line A (adjusted orig.): HUD 803
Line 3 (required): HUD 804 + ,902
Line 4 (title services): HUD 1101
Line 5 (owner’s policy): HUD 1103
©2009 Stewart.
Line 6 (required u shop): HUD 1301
GFE Page 2
Line 7 (govt. recording): HUD 1201
Li 8 (t f t ) HUD 1203Line 8 (transfer tax): HUD 1203
Line 9 (initial escrow): HUD 1001Line 9 (initial escrow): HUD 1001
Line 10 (daily interest): HUD 901
Line 11 (homeowner ins.): HUD 903
Line B (total other services)
©2009 Stewart.
A + B (total estimated charges)
GFEP 3Page 3
©2009 Stewart.
GFE Page 3
Explanation: (1) zero tolerance, (2) 10% tolerance, Tradeoff Table
( d(3) no tolerance (proposed, lower, higher
rate)
Shopping Chart
©2009 Stewart.
New HUD-1/1A
Use with Rollup Lines: Refer to New GFE 803, 1001, 1101,
1201, 1301GFE#
Compare GFE and HUD Charges
Disclose Loan Terms
Charges
©2009 Stewart.
New HUD-1/1A
Permissible Copies of HUD-1 AdvancePermissible Alterations in
HUD-1/1A
pto Seller, Buyer /
Borrower, Lender
Advance Inspection
Disclaimer / Disclose LoanDisclaimer / Signatures
Disclose Loan Terms
©2009 Stewart.
HUD-1Page 1
©2009 Stewart.
HUD-1 Page 1
Subordinate lien financing –currently (1) show net funding Taxes paid at closing –
whatever is customary y ( ) gin column in Line 204, (2) show loan amount outside column,
(3) do separate HUD for each loan
whatever is customary (1st, 2nd page)
Allowable Alterations in
©2009 Stewart.
HUD-1/1A
Items Paid By Seller or Third Party
If ll h If seller pa s chargesIf seller pays charges shown on GFE, credit
to borrower on Lines 204 - 209
If seller pays charges shown on GFE and
credit borrower, charge seller on gLines 506 - 509
You must also identifyYou must also identify on HUD any party
giving credit (paying) if the party isn’t seller
©2009 Stewart.
HUD Seller Credit Example
©2009 Stewart.
HUD-1Page 2
©2009 Stewart.
Broker Fees – 700 Series
Commission Amounts Must
No More Lines 701, 702: Split Amounts Must Be Shown
Commission Percentage (Alone)
Outside Column
Line 703 Total Commission Paid
Line 704 P.O.C. CommissionCommission Paid Commission
©2009 Stewart.
HUD 700 Series Example
©2009 Stewart.
Loan Charges – 800 Series
Line 801 (origination charge including YSP
Line 802 (add points; subtract YSP) –charge including YSP
and atty. doc. prep.) –Outside of Column
subtract YSP) –Outside of Column
(don’t say YSP)
Line 803 (adjusted orig. charge) – Inside Borrower’s Column
Line 804, et seq. –Inside Borrower’s
Column
Line 804, et seq. –Inside Borrower’s
C lBorrower s Column ColumnColumn
©2009 Stewart.
HUD Lines 801, 802 & 803 Example
©2009 Stewart.
HUD Lines 804 thru 808 Example
©2009 Stewart.
Items Paid in Advance – 900 Series
Lines 901 – 904 (i t t MIP
Show Charges (interest, MIP, homeowner’s
insurance)
gInside Borrower’s
Column
©2009 Stewart.
HUD 900 Series Example
©2009 Stewart.
Reserves Deposited With Lender – 1000 Series
Line 1001 (initial Lines 1002-1007 e 00 ( t adeposit) – Show
Inside Borrower’s Column
(specific deposits) –Show Outside
Borrower’s Column
©2009 Stewart.
HUD 1000 Series Example
©2009 Stewart.
Title Charges – 1100 Series
Show 1101 –Show Inside
Line 1101 –“Title Services
and Lender’s Title
Borrower’s Column Line 1101 –
Lender’s Title Insurance,
and Lender s Title Insurance” –
rollup
commitment, policy, abstract, endorsements, closing, search, g
title examination, settlement
©2009 Stewart.
Title Charges – 1100 Series
Line 1101 – Do Not Itemize
Payee not stated if
Unless Third Party Charges
settlement agent same as title company
No Mark Up of Third Party
Ch
Average Charges
Charges Treated Separately
©2009 Stewart.
Title Charges – 1100 Series
Line 1101 – No breakout if
Line 1102 – Show name outsidebreakout if
Administrative and Processing, such as
delivery, copying, wiring notary
name outside column if payee not same as Line 1101
wiring, notary, fed ex, in-house
employee Line 1102 –Settlement, escrow, , ,
closing, notary sign-up
©2009 Stewart.
Title Charges – 1100 Series
Line 1102 – Show Seller paid
Lines 1102, 1104 to 1108 – show outside
Line 1103 – Show basic Owner’sSeller paid
customary closing charge inside seller column
1108 show outside of borrower column
basic Owner s Policy in
buyer/borrower column. If seller pays for policypays for policy,
show credit on Line 204+ and debit
on line 506+
©2009 Stewart.
Title Charges – 1100 Series
Line 1103 – Either Line 1107 – Show A t’ ti f
Line 1108 – Show show extra charges
for enhanced coverage (extended,
Homeowner’s,
Agent’s portion of premium (not percentage)
Underwriter’s portion
endorsements) in Line 1103, with breakout outside column, OR show extra charge inshow extra charge in
Line 1109 in column. If no sale, shouldn’t
matter
©2009 Stewart.
Title Charges – 1100 Series
Line 1109+ –Show attorney’s
f f
Line 1109+ –Show
b ’fees for representing
seller in seller’s column
borrower’s attorney’s fees in borrower’s
column
Line 1109+ –Show attorney’s
fees for
Line 1109+ –Other charges
fees for preparing
deed/release etc. in seller’s
l
by name
©2009 Stewart.
column
HUD 1100 Series Example
©2009 Stewart.
HUD 1100 Series 3d Party Closing Example
©2009 Stewart.
Government Charges Inside Column – 1200 Series
Line 1201– Rollup tgovernment
recording charge to buyer/borrower
Line 1203 RollupLine 1203 – Rollup transfer taxes to buyer/borrower
Charges customarily/customarily/contractually
charged to seller can be shown in
©2009 Stewart.
seller’s applicable column
Government Charges Outside Borrower Column –1200 Series
Line 1202– Line 1204 – Line 1205 – StateLine 1202–Specific
government recording charge
City/County/Tax/ Stamp to buyer /
borrower
Line 1205 – State Tax/Stamps to
buyer/borrower
to buyer/borrower
Line 1206 – Other Show charges Recording and
Transfer Servicescustomarily paid
by seller in seller’s column
©2009 Stewart.
HUD 1200 Series Inside Column Example
©2009 Stewart.
HUD 1200 Series Outside Column Example
©2009 Stewart. 39
Other Charges – 1300 Series
Line 1301 – Rollup in Line 1302 + – Required
services outside column
pborrower column required services the borrower can
shop (survey, pest inspection))
Line 1302 + – Other charges of borrower/buyer
or seller inside columns (e.g. home warranties,
insurance, other inspections, taxes paid,
©2009 Stewart.
enhanced otp)
HUD 1300 Series Inside Column Example
©2009 Stewart.
HUD 1300 Series Outside Column Example
©2009 Stewart.
HUD-1HUD 1Page 3
©2009 Stewart.
HUDHUD Comparison
ChartChart
©2009 Stewart.
HUD Comparison Chart
Has 3 Comparison Charts:
Compares GFE and
HUD Charges
(1) Charges that can’t increase;
(2) Aggregate charges that can’t increase more than 10%;
(3) Charges that can change any %
©2009 Stewart.
HUD Comparison Chart
Loan Originator mustShows 0% and 10% aggregate tolerance compliance or violation
Loan Originator must identify third party
services selected by borrower and not on list
provided by Loan Originator, so not subject
to 10% tolerance limit
©2009 Stewart.
HUD Charges That Can’t Increase Example
©2009 Stewart.
HUD Chart 10% Tolerance Limit Example
©2009 Stewart.
HUD Chart 10% Tolerance Limit Example
©2009 Stewart.
HUD Chart Charges Can Change Example
©2009 Stewart.
Loan TTerms
©2009 Stewart.
HUD Loan Terms Chart
This Chart promotesThis Chart promotes borrower
understanding of loan terms and verification
th did ’t h
This chart is the substitute for the prior
proposed scriptthey didn’t change
L O i i t tLoan Originator must transmit info to closing agent to allow closer to
prepare the HUD,
©2009 Stewart.
p epa e t e U ,including last page
HUD Loan Terms
©2009 Stewart.
HUD Loan Terms
©2009 Stewart.
New Average Charge
Any settlementAverage Charge may Any settlement service provider may use Average Charge
apply to a Settlement Service (not loan amount
or value of property)
M st relate to a May not exceed totalMust relate to a Class of transactions
May not exceed total amounts paid a provider
for the services
©2009 Stewart.
New Average Charge
Class must includeClass must include period of time
(30 days to six months, keep record 3 years)
Class must include the geographic area
If use average chargeClass must include
type of loans
If use average charge, must use for all
transactions in class
©2009 Stewart.
Required Use
“Required use means a situation in which aperson’s access to some distinct service,property, discount, rebate, or other economicincentive, or the person’s ability to avoid aneconomic disincentive or penalty, is contingenteconomic disincentive or penalty, is contingentupon the person using or failing to use areferred provider of settlement services ”referred provider of settlement services.
Now Withdrawn
©2009 Stewart.
Now Withdrawn
Required Use
Settlement service providermay offer a combination of Must be optionaly
bona fide settlement services at total price lower than sum of individual market prices
(not builder)
Must be optional
Cannot be made up by higher p y gcosts elsewhere
©2009 Stewart.
(and all settlement service providers lived happily ever after)
We will have more webinars this year
happily ever after)
We will have one or more bulletins this year
We will provide an interactive HUD 1 as aWe will provide an interactive HUD-1 as a teaching tool
jgosdin@stewart com
©2009 Stewart.
NEW HUD-1AIM Development Update
August 18, 2009
Jennifer Dumas, SVP Product Development PropertyInfo Corporation
jdumas@stewart [email protected]
©2008 Stewart.
AIM New HUD Key Dates
AFW 4.1 new HUD
AFW 6.0 new HUD HUD
RolloutOctober
2009
HUDRollout
August 2009
AIM+ new HUD-1Rollout
©2009 Stewart.
RolloutSeptember
2009
AFW Title Insurance Screens
©2009 Stewart.
AIM+ Title Insurance Screens
©2009 Stewart.
AIM New HUD Training
AFW new HUDMonthly
AFW new HUD electronicMonthly
WebinarsSeptember 2009
electronic tutorials
November 2009
AIM+ new HUDMonthly AIM+ new HUD
electronicWebinars beginning
September 2009
electronic tutorials
October 2009
©2009 Stewart.
Customer Care – (877) 800-3132
2. Click on Downloads
1. Go to lifeline.propertyinfo.com
3. Click on New HUD Format
©2009 Stewart.
Q ti ?Questions?jdumas@stewart [email protected]
Customer Care – (877) 800-3132
©2009 Stewart.Customer Care – (877) 800-3132