We do a “simo close” for example an 80-10-10 transaction, that is 80% purchase-10% Equity Line for down payment and 10% cash down. We have a closing agent prepare the HUD-1 and we prepare a HUD-1A for the Equity Line. It is my understanding that an Equity Line is exempt from the RESPA HUD-1A requirements as long as we have given our upfront early disclosures. My question, if we give a HUD-1A and it is incorrect or we do not have a copy of it in our file (not returned from the closing agent) do we have a RESPA violation for an incorrect disclosure?

When referring to the home equity line of credit, you are correct that RESPA does not apply if early disclosures are given correctly.
So, not having a copy of any HUD would not be a RESPA violation. And if RESPA is not applicable, I would not keep a copy of any HUD. You never know about some examiners and whether or not they will write you up for not really knowing when RESPA does/does not apply. Why take chances?

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You never know about some examiners and whether or not they will write you up for not really knowing when RESPA does/does not apply. Why take chances?

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I understand your concern, but there is no violation for using a HUD 1-A Settlement Statement in this instance. In fact RESPA's Appendix A encourages its use.

If you use it, it should be accurate. But since it is not required I would fight any citation a regulator would try to give me as long as my other disclosures were accurate.