Tuesday, April 29, 2008

query: does a HUD-1 statement have to be signed

If the transaction falls under the Real Estate Settlement Procedures Act [RESPA], I say yes, it must be signed. The HUD-1 is a core disclosure under RESPA.

4 comments:

da said...

Not to start a trivial argument, but I'm fresh from a RESPA class given by HUD and bursting with info...

RESPA does not require the HUD-1 be signed. At all. It merely requires the form to be completed and given to the borrower for review (see the RESPA section on Uniform Settlement Statements.) FHA loans do require that the HUD-1 addendum be signed, but not necessarily the HUD itself.

The tradition (and requirement) of signing HUDs comes from private lenders, not RESPA.

I should note though, that having borrowers sign the HUD is often the surest way to avoid any arguments later about whether or not they actually saw the completed HUD-1.

Diane Cipa said...

da - Thanks and I agree but as a former lender and a title agent, I didn't want to confuse our readers. You are absolutely correct but real world is that RESPA transactions have lenders who will insist that the HUD-1 be signed. LOL ....so lenders rule cause they have the dough!

aarona said...

If I did not sign a HUD Addendum before my loan closed on a bank owned house, can I gey out of the loan?

Diane Cipa said...

The Note that you signed is the promise to repay, not the HUD-1. If you believe the mortgage lender has compliance problems that might allow you to rescind your transaction, you should consult an attorney.