[Code of Federal Regulations]

[Title 24, Volume 5]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR3500.10]



[Page 276-277]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

 CHAPTER XX--OFFICE OF ASSISTANT SECRETARY FOR HOUSING--FEDERAL HOUSING 

        COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 3500_REAL ESTATE SETTLEMENT PROCEDURES ACT--Table of Contents

 

Sec.  3500.10  One-day advance inspection of HUD-1 or HUD-1A settlement 

statement; delivery; recordkeeping.



    (a) Inspection one day prior to settlement upon request by the 

borrower. The settlement agent shall permit the borrower to inspect the 

HUD-1 or HUD-1A settlement statement, completed to set forth those items 

that are known to the settlement agent at the time of inspection, during 

the business day immediately preceding settlement. Items related only to 

the seller's transaction may be omitted from the HUD-1.

    (b) Delivery. The settlement agent shall provide a completed HUD-1 

or HUD-1A to the borrower, the seller (if there is one), the lender (if 

the lender is not the settlement agent), and/or their agents. When the 

borrower's and seller's copies of the HUD-1 or HUD-1A differ as 

permitted by the instructions in appendix A to this part, both copies 

shall be provided to the lender (if the lender is not the settlement 

agent). The settlement agent shall deliver the completed HUD-1 or HUD-1A 

at or before the settlement, except as provided in paragraphs (c) and 

(d) of this section.

    (c) Waiver. The borrower may waive the right to delivery of the 

completed HUD-1 or HUD-1A no later than at settlement by executing a 

written waiver at or before settlement. In such case, the completed HUD-

1 or HUD-1A shall be mailed or delivered to the borrower, seller, and 

lender (if the lender is not the settlement agent) as soon as 

practicable after settlement.

    (d) Exempt transactions. When the borrower or the borrower's agent 

does not attend the settlement, or when the settlement agent does not 

conduct a meeting of the parties for that purpose, the transaction shall 

be exempt from the requirements of paragraphs (a) and (b) of this 

section, except that the HUD-1 or HUD-1A shall be mailed or delivered as 

soon as practicable after settlement.

    (e) Recordkeeping. The lender shall retain each completed HUD-1 or 

HUD-1A and related documents for five years after settlement, unless the 

lender disposes of its interest in the mortgage and does not service the 

mortgage. In that case, the lender shall provide its copy of the HUD-1 

or HUD-1A to the owner or servicer of the mortgage as a part of the 

transfer of the loan file. Such owner or servicer shall retain the HUD-1 

or HUD-1A for the remainder of the five-year period. The Secretary



[[Page 277]]



shall have the right to inspect or require copies of records covered by 

this paragraph (e).



(Approved by the Office of Management and Budget under control number 

2502-0265)