Bulletin: NL000011

Date:
April 10, 1991
To:
All Issuing Offices
RE:
Settlement Certification - HUD-1 Addendum - Single Family FHA - Insured Transactions

Dear Associates:

  1. New HUD certification (June 1, 1991)

    HUD has recently issued Mortgagee Letter 91-9. This letter requires settlement agents to execute an Addendum to HUD-1 Settlement Statement and Certification on single-family FHA-insured transactions closed after June 1, 1991.

    You will be instructed that you may not disburse loan proceeds if you have actual knowledge that the source of funds is not as described in the closing instruction. You must contact the mortgage lender for further instructions.

    You may secure copies of the Addendum and Certification from Stewart Forms and Information.

    For those issuing offices in Texas, Fabian S, Gomez III, Title Insurance Manager, confirmed that the certification will not constitute a violation of new Procedural Rule P-35.

  2. Escrow account statement - RESPA transactions (April 1, 1991)

    HUD has issued new regulations concerning escrow account statements. These regulations obligate and lender to give the borrower at closing or within forty-five days after closing an escrow account statement. These regulations are effective April 1, 1991.

    We expect that lenders will require that the initial statement be provided to the borrower at closing. The statement may be included in the HUD-1 or attached as an additional page.

You may secure revised HUD-1 forms or Addendum shortly from Stewart Forms and Information.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
5.16 Escrow Closings
Exceptions Manual:
None
Forms:
None