Thread Starter: Anonymous
Title: Re: curing tolerance violations on the HUD
|
Thank you for your response! That was my thoughts; however, someone in my bank pointed out the following from the RESPA FAQ's from HUD (section 4 & 5 #9)
Q: How is a potential tolerance violation that is corrected by the lender shown on the HUD-1?
A: The settlement agent must prepare a revised HUD-1 that states the actual charges paid by the borrower and seller. If the lender pays for a portion of a charge to cure a potential tolerance violation, the amounts for the charge shown on page 2 of the HUD-1 must be corrected to show the actual amount charged to the borrower. The settlement agent should include on a blank line in the applicable series a notation that the lender has made a P.O.C. payment of a specified amount to correct a potential tolerance violation. After the revised HUD-1 has been prepared by the settlement agent, the settlement agent must provide the revised HUD-1 to the borrower, the lender, and the seller as appropriate.
|
|
|
|
