[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: 24CFR3500.8]



[Page 274-275]

 

                 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.  3500.8  Use of HUD-1 or HUD-1A settlement statements.



    (a) Use by settlement agent. The settlement agent shall use the HUD-

1 settlement statement in every settlement involving a federally related 

mortgage loan in which there is a borrower and a seller. For 

transactions in which there is a borrower and no seller, such as 

refinancing loans or subordinate lien loans, the HUD-1 may be utilized 

by using the borrower's side of the HUD-1 statement. Alternatively, the 

form HUD-1A may be used for these transactions. Either the HUD-1 or the 

HUD-1A, as appropriate, shall be used for every RESPA-covered 

transaction, unless its use is specifically exempted,



[[Page 275]]



but the HUD-1 or HUD-1A may be modified as permitted under this part. 

The use of the HUD-1 or HUD-1A is exempted for open-end lines of credit 

(home-equity plans) covered by the Truth in Lending Act and Regulation 

Z.

    (b) Charges to be stated. The settlement agent shall complete the 

HUD-1 or HUD-1A in accordance with the instructions set forth in 

appendix A to this part.

    (c) Aggregate accounting at settlement. (1) After itemizing 

individual deposits in the 1000 series using single-item accounting, the 

servicer shall make an adjustment based on aggregate accounting. This 

adjustment equals the difference in the deposit required under aggregate 

accounting and the sum of the deposits required under single-item 

accounting. The computation steps for both accounting methods are set 

out in Sec.  3500.17(d). The adjustment will always be a negative number 

or zero (-0-). The settlement agent shall enter the aggregate adjustment 

amount on a final line in the 1000 series of the HUD-1 or HUD-1A 

statement.

    (2) During the phase-in period, as defined in Sec.  3500.17(b), an 

alternative procedure is available. The settlement agent may initially 

calculate the 1000 series deposits for the HUD-1 and HUD-1A settlement 

statement using single-item analysis with only a one-month cushion 

(unless the mortgage loan documents indicate a smaller amount). In the 

escrow account analysis conducted within 45 days of settlement, however, 

the servicer shall adjust the escrow account to reflect the aggregate 

accounting balance. Appendix E to this part sets out examples of 

aggregate analysis. Appendix A to this part contains instructions for 

completing the HUD-1 or HUD-1A settlement statements using an aggregate 

analysis adjustment and the alternative process during the phase-in 

period.



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

2502-0265 and 2502-0491)



[61 FR 13233, Mar. 26, 1996, as amended at 61 FR 58476, Nov. 15, 1996]