[Code of Federal Regulations]
[Title 24, Volume 5]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR3500.10]

[Page 265]
 
                 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 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)