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#1836627 - 07/25/13 08:51 PM HUD Settlement Date (RESPA)
LAK Offline
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Has anyone ever seen where the Date of Settlement on the HUD is anything other than the Note Date? If so please share. Thanks

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RESPA
#1836629 - 07/25/13 08:53 PM Re: HUD Settlement Date (RESPA) LAK
Tater Offline
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Missouri
Yes. A loan which is fully amortizing which is secured by the residence being purchased and the borrower's current primary residence could have a note date earlier than the consummation date of the purchase so as to allow rescission to expire before the purchase date.
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#1836684 - 07/26/13 12:36 PM Re: HUD Settlement Date (RESPA) LAK
RR Joker Offline
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There would only be one HUD involved in that bridge loan and consumation (as opposed to funding) would still be the same, IMHO.
Last edited by RR Joker; 07/26/13 12:36 PM.
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#1836751 - 07/26/13 02:02 PM Re: HUD Settlement Date (RESPA) LAK
rlcarey Online
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From the HUD-1 instructions:

The settlement date is the date of settlement in accordance with 24 CFR 3500.2, not the end of any applicable rescission period.

Settlement means the process of executing legally binding documents regarding a lien on property that is subject to a federally related mortgage loan. This process may also be called “closing” or “escrow” in different jurisdictions.
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#1836809 - 07/26/13 02:59 PM Re: HUD Settlement Date (RESPA) LAK
swiggles Offline
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For our secondary market program, the note date and settlement date always match. On in-house loans, however, I have seend different dates. For example, the bank has all of the documents ready for closing and the borrower misses the closing for one reason or another. The bank doesn't want to reprint all the docs, so they leave as is other than changing the settlement date on the HUD. But when booked to the system, the date that interest starts to accrue is the settlement date (the date the money is actually funded)....not the note date.
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#1836813 - 07/26/13 03:02 PM Re: HUD Settlement Date (RESPA) LAK
RR Joker Offline
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I've seen that too, swiggles, and it makes me cringe. eek
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#1836826 - 07/26/13 03:11 PM Re: HUD Settlement Date (RESPA) RR Joker
swiggles Offline
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Originally Posted By: RR Joker
I've seen that too, swiggles, and it makes me cringe. eek
That's true, because there's no need not to reprint these days. It's just a software date change and press the print button. It's NOT like the documents have be completely "re-typed" like in the old days and new hard copy docs delivered to the settlement agent by the bank.

I see it, but I discourage it.
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#1836923 - 07/26/13 04:28 PM Re: HUD Settlement Date (RESPA) LAK
Truffle Royale Offline

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There's more to it than just being lazy or not wanting to waste paper.

You have a legally binding contract from the date on the recorded document (mortgage/deed of trust) and the note. The HUD plays no part in the contractural aspect of a mortgage. It simply lists the costs and payments.

I wouldn't just discourage this practice...I'd outlaw it.

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#1836996 - 07/26/13 05:54 PM Re: HUD Settlement Date (RESPA) LAK
swiggles Offline
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I agree, Truff, but typically, though these occurances are rare (so I wouldn't label it as "practice"), the discovery is made after closing. I can "outlaw" all I want. But gaining perfect compliance, just as with anything, is impossible. I get my ruler out and rap the loan officer's knuckles and then wait for the next occurance.
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#1836999 - 07/26/13 05:59 PM Re: HUD Settlement Date (RESPA) LAK
RR Joker Offline
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The Swamp
Yeah, it's the same principal as drawing up the docs...and the borrower not wandering in until 2 weeks later to sign everything. cry
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#1837103 - 07/26/13 08:18 PM Re: HUD Settlement Date (RESPA) RR Joker
swiggles Offline
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cry cry cry cry !!!!!!
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#1837158 - 07/26/13 10:35 PM Re: HUD Settlement Date (RESPA) LAK
Truffle Royale Offline

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This must be the difference between keeping loans in-house and selling them on secondary.
Secondary simply would NOT accept a loan with different dates.
All the LOs we deal with know that so I have managed to outlaw it here.

When I worked in a bank mortgage dept., we were charged with preparing all loans so that they COULD be sold on secondary if a need ever arose to divest our portfolio. That's where I actually learned that everything must be dated correctly all the time...period.

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#1837166 - 07/27/13 02:20 AM Re: HUD Settlement Date (RESPA) LAK
#Just Jay Offline
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Word.
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