I have read differing information about completing the "new HUD". What are you supposed to do about taxes and insurance when you aren't required to escrow for them? We used to show them as POC but I was thinking I read that you can't show them as POC anymore and we aren't for sure what line to put these on. Can anyone help? Thanks!

This is only an opinion, take it as you will...

NOTHING on the GFE may be shown as POC.

Real Estate "Property" Taxes only go on the GFE if it is being escrowed. Real Estate "Property" Taxes only go on the HUD-1 if the borrower will pay it at settlement, will need to be shown in the 500 and 900 series of the HUD-1.

Homeowners Insurance goes in Block 11 of the GFE. It is shown on Line 903 of the HUD-1. If Homeowners Insurance is POC, it should be shown on the HUD-1 as 900.00 POC (Borrower). On page 46 of the RESPA FAQs (as of 1-28-10)in the HUD-1 900 series section there is an example of how to show insurance POC.

Consider verifying with your banks examiner.

Good luck.

We've never put Taxes in the 900 series. If borrower owed we put them in 104-105, if seller owed we put them in the 500 series.

Where do you show the taxes on the HUD1A??

Thanks for your help.

We put them in Section M - items paid to others - Lines 1501-1515.

If they are not being escrowed or paid at closing, they do not go on the GFE, HUD1 or HUD1A.

What do you exactly mean paid at closing? Thanks for your help.

Paid at closing means a check is cut by the closer to pay the bill.

So,property taxes would be included in the loan amount and the bank or whomever is the closer would cut the check?


Thanks again.

OR - "could" be included. If not included in the loan amount, the borrower would have to bring funds to closing.

Thanks for your help.

We had in the past put taxes and insurance costs as POC on the HUD and GFE. I know you can't show anything as POC on the GFE but we didn't know about showing them on the HUD, when we don't escrow. So how would you handle pro-rated taxes that are paid at closing by the seller.

The way you handle pro-rated taxes did not chnage. That will be handled the same way you have always done it.

We used to show what approximate insurance and taxes were to be for the year as POC as information for the borrower. I take it we don't do that anymore on either the GFE or the HUD. We do not require insurance to be paid up front. So, we don't list it, right? We wouldn't list estimated real estate taxes either then, right?

Thanks for your help!

Correct.

David,
Can you give me some background on why you said "You don't list taxes on the HUD-1/1A unless they are delinquent or due before the first payment or in the escrow (1000s)."?

We have a loan that shows tax-exempt on the title work, but when borrower buyers the land it will no longer be tax-exempt. We are showing tax-exempt on the HUD-1, but we aren't sure if that is right or not because we know he will owe taxes...we just don't know how much.

If they are due before the first escrow payment, and we are disbursing the payment at closing & showing the taxes on the HUD, where would this be placed? Our title companies are putting in the 1300's, and NOT included in 1301. We have been putting them on 904, but it's showing tolerance cures for them, because we had not disclosed them on the GFE. Is this correct? Do we need to re-disclose?

Similar question
If we are using loan proceeds to pay past due taxes and to pay the hazard insuance where do they go on the HUD 1. If this is a HPML are we allowed to settle the loan without proof of insurance if the insurance will be purchaes with the loan proceeds.

jerseygirl, you should be handling the payment of that insurance premium, imho. Then you have proof. Particularly on a loan where the taxes were already delinquent AND combined with the fact you have an HPML and have to establish your escrow account for future t&I!

On non-escrowed and escrowed... We include the taxes that need to be paid, so they are current at closing in the 1300 lines. For instance we had one state that taxes are due 11/1/10 so this was a big issue the past couple of weeks. The taxes show as a lien since they are due and payable.

We used to put them in line 904. Then they were showing up on the GFE. The examiners did not like the taxes showing up anywhere on the GFE. AT ALL! We put them on the 1300 lines after speaking to several people. We mark them as a fee the Borrower can choose the provider for.

They should be listed in the 100's on the HUD-1 or Section M of the HUD-1A.

Thank you for your help David! Do you happen to know where that is stated? I seem to be getting a lot of conflicting information, and I am trying to show proof to my supervisors, so that we can get this process changed.

Where does it state in the regulation about the property taxes not being listed on the HUD-1 if there is no escrow? I've looked and looked and can't find it. Please help!

Bump
Where does it state in the regulation about the property taxes not being listed on the HUD-1 if there is no escrow?