I am just beginning to work on some internal auditing so I have a lot of unanswered questions. I have been testing some new real estate loans. I was checking for the HUD-1/HUD-1A. We have a HUD for loans where RESPA applies as well as when it does not. I had a question concerning the HUD when RESPA does not apply. Our loan officers are saying that the attorneys are giving a HUD for all real estate loans in the closing package. But, they are telling me that the HUD is not a necessary document when it is not a RESPA loan. Therefore, on the construction loans, we have a HUD in the file but it is not always signed by the borrower. I am not sure if this is a problem or not. I don't want to take the word of the loan officers and I can't seem to find the answer to my question anywhere else. Can someone help?

Many attorneys and title companies use check writing software that pulls information from the settlement statement. That may account for the times you get a form when it is not required.

If the loan officer is accepting it as a closing statement from the closing attorney, the customer should sign it to accept it as well.

You are right not to take the word of the loan officers. They are in sales, not compliance or documentation. The reason you have a job is to make sure they do their's.