HUD Fee Disclosures

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Question:

When a real estate purchase loan goes to a closing company they prepare and send the HUD for the bank to approve. When they disclose fees such as appraisal, credit report and flood they show the funds being paid to our bank instead of the actual service provider. Are we headed down a bad road?

Answer:

Yes, from the instructions: Section L. Settlement Charges. For all items except for those paid to and retained by the Lender, the name of the person or firm ultimately receiving the payment should be shown.

First published on BankersOnline.com 3/23/09