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October 29
Documenting an Applicant's Intent to be a Joint Applicant;
David Dickinson

November 4
Issues with Deceased Customers;
Mary Beth Guard and John Burnett

November 5
Vault Burglaries, Floods, Fires & Other Disasters;
Dave McGuinn

November 6
MLO v LO - Who Has to Do What?;
Jack Holzknecht and Mary Beth Guard

November 13
Domestic Violence & Workplace Violence: There Is A Link;
Shelly Collins and Dana Turner

November 18
Understanding USPAP and Regulatory Guidelines for Appraisal and Evaluation Compliance Reviews;
Eric Collinsworth



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#1672634 - 03/02/12 02:17 PM Taxes on HUD document
unknown_to_me Offline
New Poster

Registered: 01/25/12
Posts: 9
I understand that taxes should not be disclosed on the GFE, however, how is your bank disclosing property taxes in the following situations?

1. The customer is purchasing a house.
2. The customer is refinancing their home.
3. The customer is refinancing their home where the 1st half of the taxes are currently due and the first payment isn't until after the taxes are due.

We currently disclose taxes in the 900 series (POC Borrower)and in the 1300 series when they are due before the first payment is to be made.

I've read a few posts that contradict our assumption of disclosing taxes in the 900 series as it doesn't meet the definition of a settlement service in 3500.2 . However, I see 3500.2(13) mentions the service involving real estate taxes. Can someone tell me how taxes does not meet the definition of a settlement service?

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RESPA
#1672652 - 03/02/12 02:34 PM Re: Taxes on HUD document [Re: unknown_to_me]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 50412
Loc: Galveston, TX
Property tax payments go on page 1.
_________________________
The opinions expressed are my own, take them or leave them.

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#1672662 - 03/02/12 02:45 PM Re: Taxes on HUD document [Re: unknown_to_me]
unknown_to_me Offline
New Poster

Registered: 01/25/12
Posts: 9
In every situation? Would you be able to give me additional guidance on where to find this in RESPA or the FAQ document?

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#1672674 - 03/02/12 02:50 PM Re: Taxes on HUD document [Re: unknown_to_me]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 50412
Loc: Galveston, TX
Property taxes are not a settlement charge. Taxes would have to be paid whether this involves a loan or not. If they don't belong on page 1, why are their specific lines designated for them? I'm sure that it is the instructions to the HUD-1 for those line items.
_________________________
The opinions expressed are my own, take them or leave them.

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#1672716 - 03/02/12 03:24 PM Re: Taxes on HUD document [Re: unknown_to_me]
unknown_to_me Offline
New Poster

Registered: 01/25/12
Posts: 9
Currently, we use lines 104-105 on page 1 for our payoff off the loan(s) that are currently being refinanced. Where would those charges now be listed?

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#1672850 - 03/02/12 05:31 PM Re: Taxes on HUD document [Re: unknown_to_me]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 50412
Loc: Galveston, TX
Property taxes go in the 210 and above series and 510 and above series (have you even looked at the form?).
_________________________
The opinions expressed are my own, take them or leave them.

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#1672857 - 03/02/12 05:38 PM Re: Taxes on HUD document [Re: unknown_to_me]
RulesFollower Offline
100 Club

Registered: 10/17/11
Posts: 185
Unknown, anything that could create a lien on the property if left unpaid belongs on page 1. This includes prior liens, property taxes and homeowner association dues.

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#1672970 - 03/05/12 09:59 AM Re: Taxes on HUD document [Re: unknown_to_me]
unknown_to_me Offline
New Poster

Registered: 01/25/12
Posts: 9
I agree that the taxes go in the series rlcarey has noted above in a purchase transaction. However, our lenders like to list the taxes as POC in the 900 series in a refinance transaction. Where are others listing the taxes in a refinance.

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#1672976 - 03/05/12 10:06 AM Re: Taxes on HUD document [Re: unknown_to_me]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 50412
Loc: Galveston, TX
"However, our lenders like to list the taxes as POC in the 900 series in a refinance transaction."

Whether they "like to" or not, on what basis are they listing these items?? Unless taxes are being paid in conjunction with a refinance transaction, they do not appear on the HUD-1.
_________________________
The opinions expressed are my own, take them or leave them.

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#1702333 - 05/23/12 09:54 AM Re: Taxes on HUD document [Re: unknown_to_me]
arye23 Offline
Gold Star

Registered: 03/09/11
Posts: 294
I'm bringing this back up.

Randy, they are probably an FDIC-Chicago regulated institution that is trying to follow CHIRO Bulletin 14-2005, which instructed their banks to disclose real estate taxes on the GFE and HUD as a POC item.

The reason I'm bringing this back up is that I had a discussion with an FDIC examiner recently who said that they are still following that bulletin, even though it is 7 years old and you can't do POC items on the GFE. Taxes do not meet the definition of a settlement charge and unless you are doing pro-rated taxes as part of a purchase, escrowing, or paying delinquent (disbursement), they have no place on the HUD. I'm trying to get more information on this. This opinion only exists to my knowledge in the Chicago region of FDIC...
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CRCM

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#1716302 - 07/02/12 01:33 PM Re: Taxes on HUD document [Re: unknown_to_me]
Soccer Dad Offline
Member

Registered: 05/24/04
Posts: 65
Loc: IL: Will
Bump Is there any more information for Chicago FDIC Institutions?

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