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#1221143 - 07/23/09 02:41 PM split closing, two HUD-1s?
Mint Julep Offline
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Mint Julep
Joined: Oct 2007
Posts: 1,152
Tennessee
Even though I've worked in a title company and done loan review and had all the compliance training ... I'm trying to get some opinions on something we got and have been told by a title company.

Documents arrived from title company and included two HUD-1s, one signed by seller and one by buyer. Figures in fields 100-120 on buyer's side do not match. In fact, there is a $104,000 difference in the total on line 120.

Loan processor called title company and questioned it. Title company said it was okay because seller was only signing for his side and the numbers were correct by the time the buyer signed their version.

None of us are comfortable with this. I'd prefer to see one HUD.

Thoughts? Comments? Suggestion?
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#1222323 - 07/24/09 06:52 PM Re: split closing, two HUD-1s? Mint Julep
Mint Julep Offline
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Mint Julep
Joined: Oct 2007
Posts: 1,152
Tennessee
Bump this up in hopes of some response.

I've talked to another title company and they say "no problem". I've talked to an attorney at a title underwriter and he says "make them fix it".

Just wanting more input before I go back to the processor. It is going to cause a fuss if I tell her to get it fixed and I want to feel certain of my position.
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#1222351 - 07/24/09 07:11 PM Re: split closing, two HUD-1s? Mint Julep
Tesla Offline
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I don't think this meets the Instructions for use of the HUD-1 form under HUD's Reg X. I guess I am assuming this is a purchase, too.

I don't have anything specific to cite for you, so this is just my opinion. I would demand a new HUD-1 completed with the both parties to the closing information completed as described in instructions.
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#1222471 - 07/24/09 08:24 PM Re: split closing, two HUD-1s? Tesla
rlcarey Online
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Galveston, TX
"Documents arrived from title company and included two HUD-1s, one signed by seller and one by buyer. Figures in fields 100-120 on buyer's side do not match. In fact, there is a $104,000 difference in the total on line 120."

In who's favor? The buyer or the seller? Sounds like a perfect opportunity for the closing agent to be assisting in mortgage fraud. How can the transactions even begin to reconcile?
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#1222774 - 07/27/09 02:59 PM Re: split closing, two HUD-1s? rlcarey
Mint Julep Offline
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Mint Julep
Joined: Oct 2007
Posts: 1,152
Tennessee
Ski,

Construction to perm, single close.

RL,

I'm not certain in whose favor this goes. Line 303 matches on each HUD. All numbers on the seller's side match on both.

Let me give you the figures by line from Section J, seller signed version:
101. 142,000 contract sales price
103. 5,386.31 settlement charges to borrower
104. 288,450.00 cost to build
105. 102,715.99 available for const
120. 538,552.30 gross amount due
201. 3,000 deposit
202. 387,405 principal of loan
205. 104,376.31 1st draw
211. 725.99 county tax
220. 495,507.30 total paid by borrower

And then from the buyer signed version:
101. 142,000 contract sales price
103. 5,386.31 settlement charges to borrower
105. 286,789.68 available to draw
120. 434,175.99 gross amount due
201. 3,000 deposit
202. 387,405 principal new loan
211. 725.99 county tax
220. 391,130.99 total paid by borrower

Addtional thoughts or comments?
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