HUD-1
Mortgage Insider » Glossary - Mortgage Terms » HUD-1
The HUD-1 is a document required by RESPA (Real Estate Setllement and Procedures Act, the controlling Federal law) to show actual charges and adjustments for all parties including the seller, buyer, agents, lenders, and all third parties.
HUD-1 Defined
Another name for the HUD-1 is the closing statement or settlement sheet.
A HUD-1 is signed by the buyer, seller, and closing agent at closing. For a refinance, only the borrower and closing agent sign the HUD-1.
The Good Faith Estimate is supposed to be an initial estimate of what will be on the final HUD-1. But, it doesn’t always work that way.
The Good Faith Estimate is used more to get a borrower in the door than to accurately disclose the charges, fees, and adjustments. Many borrowers don’t see the real charges until the final HUD-1 at closing and by then it is too late.
Federal law allows for the HUD-1 to prepared for review 24 hours in advance of the closing…but only if the borrower request it.
So request it. This is one weapon in the fight against last minute charges or “bait-n-switch” tactics.
People in the mortgage industry just call it “the HUD”. It confuses some borrowers because they think is has to do with a special HUD mortgage or HUD home but it is just an abbreviation of the full document name.
Author: The Mortgage Insider
Date: August 29, 2008
Tags by Post Closing Statement, HUD-1, Settlement Sheet
Technorati Closing Statement, HUD-1, Settlement Sheet
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Should the seller get a copy of the HUD-1 also?
Yes…buyer, seller, both agents, mortgage lender, mortgage broker, and title company or closing agent….all get a copy of the HUD1.
If you lost your copy you could contact any one of the above to get another…however it is the title company that is required to provide you with another copy.
I requested a copy from the bank on a current Home Equity Line of Credit that I have had for 8 years and they don’t have one on file. Aren’t they required to have it?
Thanks!
Josh,
It’s the title company that closed the loan that will have the copy of the HUD1 you’re looking for. Of course, you, the borrower, and the bank, the lender, both got a copy at closing as well.
If you lost yours it’s conceivable, the lender lost there’s too.
Paul,
Excellent question and “no” they are not public record even though they are federally controlled.
I guess one could still request a HUD-1 through the Freedom of Information Act, but walking down to the local court house, won’t produce anything.
RKB
Are HUD 1 settlement sheets public record?