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#1836627 - 07/25/13 08:51 PM
HUD Settlement Date (RESPA)
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Junior Member
Joined: Oct 2012
Posts: 43
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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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#1836629 - 07/25/13 08:53 PM
Re: HUD Settlement Date (RESPA)
LAK
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Platinum Poster
Joined: Jan 2006
Posts: 642
Missouri
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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
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10K Club
Joined: Nov 2002
Posts: 20,654
The Swamp
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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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My opinion only. Not legal advice. Say you'll haunt me - Stone Sour
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#1836751 - 07/26/13 02:02 PM
Re: HUD Settlement Date (RESPA)
LAK
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10K Club
Joined: Jul 2001
Posts: 83,227
Galveston, TX
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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
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Power Poster
Joined: Aug 2001
Posts: 7,351
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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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#1836826 - 07/26/13 03:11 PM
Re: HUD Settlement Date (RESPA)
RR Joker
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Power Poster
Joined: Aug 2001
Posts: 7,351
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I've seen that too, swiggles, and it makes me cringe. 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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The more you sweat in training, the less you bleed in battle.......
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#1836996 - 07/26/13 05:54 PM
Re: HUD Settlement Date (RESPA)
LAK
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Power Poster
Joined: Aug 2001
Posts: 7,351
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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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The more you sweat in training, the less you bleed in battle.......
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#1837166 - 07/27/13 02:20 AM
Re: HUD Settlement Date (RESPA)
LAK
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10K Club
Joined: Oct 2006
Posts: 14,390
Cheeseheadland
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Word.
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