HUD Instructions - Where Does the Point Go

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Question:

When the customer pays a point to reduce his rate, where should it be listed on the HUD Settlement Statement, as an origination fee or a discount fee?

Answer:

The instructions for completing the HUD-1 are contained in Appendix A to Regulation X. The instructions state, "Line 802 is used to record the loan discount or “points” charged by the Lender, and, if it is computed as a percentage of the loan amount, enter the percentage in the blank indicated."

First published on BankersOnline.com 11/29/04