Correcting Variances on HUD w/different Processors

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Question:

We are conducting an internal audit on RESPA. We have noted several variances on the HUDs with different processors. The section titled Loan terms at the end of the HUD that has information concering the rates and dates and payment dates on variable rate loans is filled out different with each processor. Is that something we need to correct and if so what is the best way to do this. Some are not filled in at all.

Answer:

The "Loan Terms" section is a required field and must be completed accurately. As the creditor is responsible for the accuracy of the HUD-1, in its entirety, this section should be reviewed prior to consummation just as you should review all other sections. RESPA requires that the borrower receive a correct HUD-1, so the only "cure" is to provide an amended HUD-1. While there is currently no specific fine for incorrect disclosure of this section, there is always the possibility of alleged UDAP violations for not properly disclosing this information.