Section 1: Mortgagee Information.To be completed by ... - HUD 2025

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When a mortgagor defaults on a loan insured by FHA, the mortgagee can assign the mortgage to HUD and receive the benefits of the FHA mortgage insurance. The mortgage then becomes a HUD-held mortgage and if the mortgage cannot be reinstated, HUD Multifamily Property Disposition forecloses on the property.
While it is customary that settlement agents prepare the final HUD, it is the mortgage originators responsibility to ensure that a HUD is given for all transactions covered by RESPA.
Share: If youre in the process of buying a house, youve probably come across several unfamiliar acronyms, like HUD. For many prospective home buyers, the U.S. Department of Housing and Urban Development (HUD) can be the key that unlocks the door to homeownership.
The settlement agent shall complete the HUD-1 to itemize all charges imposed upon the Borrower and the Seller by the loan originator and all sales commissions, whether to be paid at settlement or outside of settlement, and any other charges which either the Borrower or the Seller will pay at settlement.
On a cash deal, the settlement statement is prepared by the settlement agent, which in almost all cases is the purchasers attorneys office, and typically the statement is not completed and circulated until one or two days before the scheduled closing date.

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The law doesnt require either party to be responsible for drafting a settlement agreement. You can choose to draft it yourself and offer it to them if you want to settle or they will offer you one if they want to settle.
The HUD-1 Settlement Statement is a document that lists all charges and credits to the buyer and to the seller in a real estate settlement, or all the charges in a mortgage refinance. If you applied for a mortgage on or before October 3, 2015, or if you are applying for a reverse mortgage, you receive a HUD-1.

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