Escrow Thursday: HUD-1 Explained

Hud-1 Explained

Sections A-I: Lender’s name and address, Settlement Agent info, Buyer’s loan type, settlement date and property address.

Section L: Settlement Charges

Section 800: Items payable in connection with the new loan.

Line 801: Loan origination fee

Line 802: Loan Discount

Line 803: Appraisal fee

Line 804: Credit Report fee

Line 808: Tax service fee

Line 809: Document preparation fee

Line 810: Flood certification fee

Line 811: Processing fee

Line 812: Yield spread premium

Section 900: Items required by lender to be paid in advance.

Line 902: Mortgage insurance premiums due at settlement

Line 903: Hazard insurance premiums paid at settlement for immediate insurance on the property.

Lines 904, 905: Miscellaneous items possibly collected by the lender, such as flood insurance, mortgage life insurance, credit life insurance and disability insurance premiums.

Section 1000: Reserves deposited with lender, itemization of funds collected from the borrower by the lender for costs like those in Section 900. But lines 1001-1007 are used to start the borrower’s escrow account, from which the lender will pay the following year’s premiums.

Line 1008: Escrow adjustment to make sure the lender is not collecting more escrow funds than are allowed.

To Be Continued…..

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