Wednesday, March 28, 2007

query: title endorsements how to show on HUD-1

Good question. I like to disclose the endorsements on the next separate line beneath the title premium line of the HUD. Here's a typical endorsement disclosure on my HUDs.

Loan Policy Endorsements 710 & 900 (short form policy 100 & 300 included) $200.00

FYI - In Pennsylvania our ALTA endorsements have different numbers.

Note that the endorsements are for the benefit of the lender, not the owner.

The 710 is an adjustable rate endorsement and the 900 is the environmental lien endorsement.

A short form or instant loan policy when issued in PA includes in the body, the restrictive covenant and survey endorsements.

If I had endorsements being issued for the benefit of the owner, I would list them on a separate line to distinquish them from the lender's endorsements.

That's how I do it. Hope that helps.

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