- June 30, 2010
- All Issuing Offices
- RESPA - HUD's Suggested Course of Action when Disagreement with Lender's Instructions on Preparation of the 2010 HUD-1
HUD has verbally suggested a course of action for closing service providers to follow when the Lender's Instructions for preparation of the 2010 HUD-1 are inaccurate or confusing under RESPA regulations or HUD's FAQs. HUD's suggestions are:
a. Communicate with the Lender (in writing) and educate the lender as to the statute, regulation and HUD's FAQs on the issue;
b. Document your file with your questions, objections and comments and the Lender's responses;
c. If the Lender does not change its Instructions, follow the Lender's written instructions so long as such are not fraudulent.
d. Contact HUD if the Lender continues to misinterpret the applicable regulations and FAQs.
Recurring disagreements or problems with any particular Lender should be brought to the attention of your company's management who can contact HUD by calling 202-708-0502, by email to firstname.lastname@example.org, or by mail to:
Director, Office of RESPA and Interstate Land Sales US Department of Housing and Urban Development
451 7th Street, SW
Washington, DC 20410
While Stewart Title Guaranty Company has reviewed the Final RESPA Rule, we remind you that settlement services are outside the scope of our agency contract. Information, interpretations and views of Stewart Title Guaranty Company as to the new HUD-1 and Final RESPA Rule are offered as a courtesy only and expressly do not constitute legal advice. You may or may not agree with or follow such views and interpretations. You are advised to consult your own legal counsel in making all decisions regarding laws and regulations pertaining to escrow and closing matters.
If you have any questions relating to this or other bulletins, please contact Stewart Legal Services or your local underwriting personnel.
For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.
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.
- Bulletins Replaced:
- Related Bulletins:
- SLS2009002 RESPA Reform 2009 - NEW HUD-1, NEW HUD-1A, Average Cost Pricing, and Required Use
- SLS2010001 RESPA Rule and New HUD-1 Form - HUD-1 State Underwriter List
- SLS2010010 Updates on RESPA and 2010 HUD-1
- Underwriting Manual:
- Exceptions Manual: