Do We HUD-1 This HELOC?

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Question:

HELOCs subject to Section 226.5 of Regulation Z do not require a GFE or HUD-1. However, if our customer is using a closed end first mortgage and a simultaneously issued HELOC to purchase a home, do we need a separate HUD-1 for the HELOC?

Answer:

No. Whatever the loan's purpose, open-end lines of credit subject to the Reg. Z disclosures are exempt from the GFE and HUD Settlement Statement.

First published on BankersOnline.com 11/15/04