[WSBARP] FINAL UPDATE: Who gets to see the HUD-1

Thu Feb 27 12:29:30 PST 2014

Thank you again for all of the responses.  Here is what I have discovered
(underlining is mine):

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  (My comment:  c & d have to do with the buyer waiving or not
showing up)

Appendix A to Part 3500--Instructions for Completing HUD-1 and HUD-1A
Settlement Statements; Sample HUD-1 and HUD-1A Statements:

Lines and columns in section J which relate to the Borrower's transaction
may be left blank on the copy of the HUD–1 which will be furnished to the
Seller. Lines and columns in section K which relate to the Seller's
transaction may be left blank on the copy of the HUD–1 which will be
furnished to the Borrower.

Section J. Summary of Borrower's Transaction. (My comment:  Section covers
Lines 101 – 303) 

Section K. Summary of Seller's Transaction. Instructions for the use of
Lines 101 and 102 and 104–112 above, apply also to Lines 401–412. Line 420
is for the total of Lines 401 through 412. (My comment:  Section also
covers Lines 501-603)

All of this is to say that leaving the information out is permitted and
disclosing it does not seem to be required.  It doesn’t provide a FIRM
answer but holding to the policy is, at least, not a violation of anything
from what I have been able to determine and, in conjunction with my
earlier update, provides some clarity.

Thanks,

Rich Holland

From: wsbarp-owner at lists.wsbarppt.com
[mailto:wsbarp-owner at lists.wsbarppt.com] On Behalf Of Rich Holland
Sent: Thursday, February 27, 2014 11:31 AM
To: wsbarp at lists.wsbarppt.com
Subject: [WSBARP] UPDATE: Who gets to see the HUD-1

I have had many direct responses asking about ‘off list’ responses.  So I
am posting this update and clarification.

WAC 308-124D-205 contemplates that the Broker receive a full statement
(both sides) when the transaction has closed.  To me, that means the
listing broker for the property.  The selling agent/broker gets paid, as I
remember it, based on a contract they have through the MLS etc. with
listing brokers.   It seems to me that the broker then can share that with
the selling broker if need be or desired (which they will) and we will be
using that as our policy (and of course providing it to the selling broker
if instructed).  If any one feels differently about that portion of this,
please let me know but it makes some logical sense in my not caffeinated
enough brain right now.  I am casting about for a good policy to stand on.

I have not yet found any response other than ‘general rule’, ‘our policy’,
‘what we do’ for why buyer and seller do not get to see the other side.
Again, we use those reasons in using that same policy, I am just hoping
someone can help me find the ground beneath that.  I have reached out to
the CFPB to see if they have a statement on the issue and if I hear
anything back, I will post it.  I appreciate all of the responses.

Thanks,

Rich Holland

From: Rich Holland 
Sent: Thursday, February 27, 2014 10:07 AM
To: 'wsbarp at lists.wsbarppt.com'
Subject: Who gets to see the HUD-1

General question here:

I have what may be an academic question and it may not be.  Do all parties
get to see all of the HUD-1?  I ask because it is routine for the Buyer
not to see the Seller side but the Seller demands to see the entire HUD
and, at the same time, the Buyer’s agent wants to see the entire HUD
(usually to see the commission split) – but in law that is the same thing
as showing the Buyer the entire HUD – which the Seller objects to.  I have
not been able to find the legal authority to show to squabbling parties
why or why not they get to see or do not get to see the entire HUD.  It
all seems to be ruled by “that’s what’s always been done” and, candidly,
that’s not a good enough reason to me so any guidance on an actual rule or
statute or opinion would be appreciated.

Sincerely,

Richard L. Holland

Pacific Northwest Legal & Escrow, P.S.

733 7th Avenue, Suite 110

Kirkland, WA 98033

425-836-6240  / 425-748-3901 (fax)

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Information provided on this list should not be considered legal advice.
As with all lists - let the reader beware! No warranties or
representations are made as to the accuracy of any information provided.
All opinions and comments in this message represent the views of the
author and do not necessarily have the endorsement of the Washington State
Bar Association nor its officers or agents. 

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