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#1431103 - 08/18/10 11:30 PM HUD-1's with technical errors
KeepComplying Offline
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Joined: May 2010
Posts: 3

If HUD-1's received from settlement companies have technical errors and the lender can clearly substantiate no cure will be required regardless of whether the corrections are made;

Does the lender need to go back to the settlement agent to make the corrections?

and; If the technical errors are not fixed and a revised HUD-1 is not received within 30 days, will the lender be subjected to RESPA violations?

Any feedback is greatly appreciated.

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RESPA
#1431110 - 08/19/10 12:16 AM Re: HUD-1's with technical errors KeepComplying
Truffle Royale Offline

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Posts: 17,395
Please define 'technical' error.

Does the lender need to go back...YES

if revised HUD-1 not sent within 30 days...YES

I know of no 'outs' in RESPA that give wiggle room like you're looking for. HUD seems to want perfection from the banks on the GFE and HUD or the bank will pay the difference, either in cures or penalties. I don't think anyone's really been examined on the new RESPA yet so it's hard to say for sure. If you look around in these threads tho, you'll see that people are opting to redisclose even if they're past the 30 days just as a means to cya.

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#1431506 - 08/19/10 05:32 PM Re: HUD-1's with technical errors Truffle Royale
KeepComplying Offline
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Joined: May 2010
Posts: 3
Thanks Truffle-

My definition of technical error could include some of the following issues that would NOT result in a cure regardles if corrected:

- Fees and services omitted or not identified in the correct section of the comparison chart.
- Errors or incomplete items in loan terms section.
- Owners title/transfer taxes in sellers column on page 2.

Your comments reinforced my perspective of the requirements. After 8 months, I can't believe the settlement companies still do not understand how to properly complete the HUD-1...

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