My institution does not charge its customers for the cost of pulling a credit report. Therefore, we have to use the HUD-1. My question regards how to reflect the processing fee and any other borrower charged fee on the HUD-1 that is "withheld from proceeds", or basically rolled into the refinance (such as flood determination). I have found that the loan officers are preparing the HUD-1 and it reflects that the processing fee is listed on line 303 as Cash from borrower. However, the borrower is not paying this in cash, it is being rolled into the loan. Is this correct, or am I missing something. I really appreciate any help that anyone can provide.

You need to check how these charges are being input to the doc prep software. Based on what you are saying it appears the LOs are reflecting the charges are being paid in cash instead of being added to the loan amount.

They are not listing the loan amount on the HUD-1. My first thought is that the refinance/renewal amount should go on line 202, but I cannot determine where to put the old loan amount to offset. With there being no seller, line 101 does not appear to be proper.

The amount of the new loan would go on Line 202.

Loans to be paid off go on Lines 104 and/or 105. If you have more than two then list the additional ones on an addendum.

So, even if the loan number is staying the same and we are merely "renewing" the loan (that is what the loan officers call it, I still think it is refinancing because the old note is being replaced by the new note, even if the number is the same), we would always have the new loan amount on line 202 and the old loan amount on line 104 and/or 105? Really, the difference is only a $100 processing fee, but in order for it to reflect a zero at the bottom (since the borrower is not paying anything out of pocket at closing), we need to list both amounts? Just want to be ready when the loan officers howl.

thank you so much for your help thus far!

If you are having a new note signed then you are refinancing the existing obligation. Leaving the account number the same has absolutely no bearing whatsoever on the definition of a refinancing.


The new loan amount, whether a purchase or refinancing, goes on line 102 and in the case of a refinancing, internal or external, the amount of the loan being refinanced goes on Line 104 - 105.

It's not a renewal, it's a 'same number' refi, but LO's tend to call them 'renewals'. Terminology only seems to matter to us compliance-types.

As Dan mentioned...paying it in cash or adding to the new loan is done within your platform system. It will affect your bottom line.

You have to list both amounts...that's what a settlement statement is...it's a formal version of a disbursement sheet, which also would reflect both pieces of the total transaction.

Otherwise, it would appear your borrower is getting the majority of the money back at closing.

The new loan amount, whether a purchase or refinancing, goes on line 102

This should be Line 202.