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#961183 - 05/19/08 03:24 PM Taxes on HUD
biz Offline
Diamond Poster
Joined: Nov 2005
Posts: 1,032
Midwest
I have a Sr Lending officer indicating that because taxes in this state are collected in arrears, (2008's are due in January, 2009)that listing them on the HUD is not necessary on refi's, seconds.

There are no exceptions for this in RESPA are there? Doesn't this fall back to the mortgage document and if it says the bank will require (and may escrow) taxes to be paid, then there is a requirement and they should be disclosed at the very least as a POC, even on seconds, refi's, the 20 part of an 80/20 loan?

That's what I'm getting out of previous posts including D. Dickenson's. Just needing some reassurance before I fight this battle . . . .again.

Thank you-as always.

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Lending Compliance
#961189 - 05/19/08 03:32 PM Re: Taxes on HUD biz
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,616
Bloomington, IN
IN RE taxes are collected in arrears also, just as you described.

If you make the loan in 2008, you will require the 2007 taxes to be current. Therefore you must disclose them.
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#961190 - 05/19/08 03:32 PM Re: Taxes on HUD biz
Skittles Offline
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Skittles
Joined: Sep 2002
Posts: 13,963
TN
No, there are no exceptions. You are correct.
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#992087 - 07/10/08 03:16 PM Re: Taxes on HUD biz
biz Offline
Diamond Poster
Joined: Nov 2005
Posts: 1,032
Midwest
I obviously agree with the both of you, but the loan officer's response includes a Q&A from Compliance Action, vol. 10, No.13, 11/05, which states HUD has backed off from the tax issue.
True or False? And even though HUD has backed off, and OTS regulated institution would still follow the reg correct?

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#992095 - 07/10/08 03:19 PM Re: Taxes on HUD biz
waldensouth Offline
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waldensouth
Joined: Nov 2001
Posts: 7,979
FINALLY ABOVE the gnat line
the FDIC is still looking for this. It is part of their exam program. You may wish to contact your regulator and ask them.

I have a letter from Washington, a FIL, and the procedures from our field office to back me up when I get these questions. PM me your real e-mail address and I can forward that to you if you're interested.
Last edited by waldensouth; 07/10/08 03:21 PM.
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