David, I scanned the new FAQ and found nothing related to payoffs and the escrow balance. I did see the question where "transferred" escrow balances are to be shown in the 200 serious. However, I read that to apply to an in-house refinancing and not when a payoff is received from an outside source.
3) Q: Where should the transferred escrow balance in a refinance transaction be listed on the HUD-1?
A: The transferred escrow balance should be listed as a credit in lines 204-209 of the HUD-1. I'm not going to be transferring any escrow balance to a new lender.
)." I believe you have per the direction of §3500.17(i)(4)(iii) to conduct a loan payoff (short year) statement.
That section requires you to perform the short year statement within 60 days of receiving a payoff, not quoting a payoff. Quoting a payoff does not automatically equate to receiving one. Therefore would you expect a bank to do a short year statement each time a payoff quote request was received?
Again, as you and I both said this is a gray area and I'm not sure there is a clear cut opinion from HUD. Like you David, I'm just offering an alternative opinion for discussion.
(I know what am I thinking and clear answer from HUD)
Do you have a clear answer from HUD?