[tressa]

Good afternoon,

A HELOC does not require a Closing Disclosure and under RESPA, the use of a HUD statement is exempted for open-end lines of credit (HELOC). Under RESPA, it states there is no objection to the use of the HUD statement in which its use is not legally required. All settlement agents prepare a HUD statement for HELOCs. My question is if a HUD statement is used for a HELOC transaction, and the bank pays the credit report fee, does it matter whether the credit report fee is disclosed as paid by the bank or left blank on the HUD statement?

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[jholzknecht]

It has been a long time I have had a HUD-1 question. According to Appendix A of Regulation X, “a loan originator (other than for no-cost loans), real estate agent, other settlement service provider, or other person pays for a charge that was included on the GFE, the charge should be listed in the borrower’s column on page 2 of the HUD–1, with an offsetting credit reported on page 1 of the HUD–1, identifying the party paying the charge.” Your bank is a loan originator.

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