Which type of loan will use a HUD 1 in place of a closing disclosure quizlet?

last reviewed: SEP 04, 2020

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Which type of loan will use a HUD
What type of loan uses a closing disclosure?
Who completes the HUD
In which section of the HUD

The HUD-1 Settlement Statement is a document that lists all charges and credits to the buyer and to the seller in a real estate settlement, or all the charges in a mortgage refinance.

If you applied for a mortgage on or before October 3, 2015, or if you are applying for a reverse mortgage, you receive a HUD-1. In transactions that do not include a seller, such as a refinance loan, the settlement agent may use the shortened HUD-1A form.

If you applied for a mortgage after October 3, 2015, for most kinds of mortgage loans you receive a form called the Closing Disclosure instead of a HUD-1.

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-$3,200/365 = $8.76712329 (do not round)
-Jan-31, Feb-28, Mar-31, Apr-30, May-31, Jun-30, Jul -31, Aug-31, Sep-30, Oct 31, Nov-26=330 days X $8.76712329 = $2,893.15 (rounded to cents)
-Here we would debit the seller: $2,893.15 and credit the buyer $2,893.15

- closing information (Includes date issued, closing date, disbursement date, settlement agent, file number, property address, and sales price)
- transaction information ( includes names and addresses for both the borrowers and sellers and the lender's name)
- loan information (Includes the loan term, purpose of the loan, product type, loan type and loan ID number)
-loan term (Gives the exact figures for the loan amount, interest rate, and monthly principal and interest payment, and indicates whether any of those amounts can increase after closing)
-projected payments (Shows the actual payments the borrower will make for principal & interest and mortgage insurance, an estimated amount for the escrow payment, and the total estimated monthly mortgage payment)
-costs at closing (Shows the borrowers' total closing costs and the total amount of cash the buyers need to close the loan)

-Origination charges - Points, application fees, and underwriting fees
-Services the borrower did not shop for - Appraisal, credit report, flood determination fee, flood monitoring fee, tax monitoring fee, and tax status research fee.
-Services the borrower did shop for - Pest inspection, survey fee, title insurance binder, lender's title insurance, settlement agent fee, and title search.
The total loan costs for this borrower come to $4,694.05.

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Which type of loan will use a HUD

A HUD-1 form is most commonly used for reverse mortgages and mortgage refinance transactions. Now, for most kinds of mortgage loans, borrowers receive a form called the Closing Disclosure instead of a HUD-1 form.

What type of loan uses a closing disclosure?

A Closing Disclosure is a five-page form that provides final details about the mortgage loan you have selected. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage (closing costs).

Who completes the HUD

The settlement agent shall complete the HUD-1 or HUD-1A, in accordance with the instructions set forth in appendix A to this part. The loan originator must transmit to the settlement agent all information necessary to complete the HUD-1 or HUD-1A. (1) In general.