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#150057 - 01/14/04 09:16 PM POC Taxes on HUD
vaca Offline
Junior Member
vaca
Joined: Jun 2002
Posts: 37
Our Mortgage Company software (FICS) does not allow us to put in POC for real estate taxes in Line 1004. It does not allow any POCs in the 1000 Lines Section. For normal residential transactions it's not a problem because we do put in the appropriate amounts but on seconds, including purchase money seconds, we need to have the Taxes POC on the HUD. Would it be acceptable to place those on Line 905?

I apologize if this has been addressed previously, I did a search and could only find POC Insurance discussed.

Thanks for your help!

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#150058 - 01/14/04 09:43 PM Re: POC Taxes on HUD
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Would it be OK to put these on line 905? Not really. The question is: why won't FICS allow you to comply with the regulation?

Typically, insurance and taxes are discussed together. I would bet if you go back and do the searches again, you will find this discussed together with the insurance questions.
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#150059 - 01/14/04 10:03 PM Re: POC Taxes on HUD
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
The 1000 series is to record the monies collected as reserves for when an escrow is being set up. I have never seen these as POCs. They are usually collected at closing, not outside of closing. (BTW, my software package does not give a POC option for the 1000 series either.)

For your purchase money second mortgages are you setting up an escrow? If not then why are you collecting/showing reserves? If you're trying to show the annual amounts have been paid as POC then they should be in the 900 series.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#150060 - 01/15/04 04:34 PM Re: POC Taxes on HUD
vaca Offline
Junior Member
vaca
Joined: Jun 2002
Posts: 37
No, we are not setting up escrow or collecting for them. That is correct that we just want to show the annual amount of the taxes even though they are paying them on their own (POC).

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#150061 - 01/15/04 05:14 PM Re: POC Taxes on HUD
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
If that's the case RE taxes would be shown in the 800 series and Haz. Ins. in the 900 series.

BTW, we no longer disclose the RE Taxes, only the Haz. Ins.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#150062 - 01/16/04 04:03 PM Re: POC Taxes on HUD
vaca Offline
Junior Member
vaca
Joined: Jun 2002
Posts: 37
Thank you very much for your help; I appreciate it!

Our 800 series is completly full. The only other option I can see is 1303. RESPA's Appendix A says this is for any other "not referable to the categories listed above." But this would not be the case since the 800 series would be the appropriate spot to put this informational POC taxes data. Any thoughts?

I am also curious as to why you no longer disclose the POC taxes and only disclose the POC hazard insurance. Thanks.

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#150063 - 01/16/04 04:30 PM Re: POC Taxes on HUD
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
We also have a case where our 800 lines are depleted. What we do, and this is with the blessing of our examiner (FDIC), is we disclose it in the 1300 series but reference the 800 series. If we have to put something on line 1305 as an example it would look like this:

1305. Line 8XX Courier Fees to Whomever $XX.XX

We no longer disclose the RE taxes because it is no longer required in the Chicago Region of the FDIC. In the most recent exam (8/03) this was discussed with our examiner and no problems arose. However, I advise that you check with your examiner before you stop disclosing the RE taxes. Apparently this depends on what area you are in and who your examining authority is.

RU 2003-14
RESPA - Disclosure of Real Estate Taxes
The disclosure of annual real estate taxes on the Good Faith Estimate (GFE) and HUD-1 or HUD-1A Settlement Statements is not required at this time.

Disclosure of annual estimates of required insurance premiums (examples: hazard, flood, or private mortgage insurance) will continue to be required on the GFE and HUD-1 or HUD-1A Settlement Statements.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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