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:
Anonymous
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.
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!
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.
4 comments:
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.
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!
If I did not sign a HUD Addendum before my loan closed on a bank owned house, can I gey out of the loan?
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.
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