Construction Loans, Permanent Loans & HUD Disclosure

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Question:

On a construction loan, we disclosed the costs of the loan on the GFE. When construction was completed, we processed the permanent financing (loan), and closed. What do we need to disclose on the HUD? (Everything from the original loan and GFE too?) or just what is involved with this permanent loan?

Answer:

You should disclose the costs that are involved for the permanent loan. That being said, bear in mind that some costs, such as hazard insurance, should be redisclosed because they are a condition of the permanent loan as well as the construction loan. However, fees such as inspection fees for the construction loan do not need to be redisclosed.

First published on BankersOnline.com 05/19/03