Understanding The HUD-1 Form, Part 1
Let’s look at this form used in all home sales and refinances. You know most of this already, but maybe we can offer a few tips. Today we examine the header of the HUD settlement statement form, sections A through I.
Section A – You know it’s a government form when there is an entire section dedicated to the title. Thank you, U.S. Department of Housing and Urban Development, for setting aside a section to say “Settlement Statement (HUD-1)”. Truer words were never spoken. Let’s move on.
Section B – Indicate the loan type and complete the appropriate fields such as File Number, Loan Number or Mortgage Insurance Case Number. Change the Status to the correct value if this isn’t the final version. “Created By” is for internal office use and will not be printed on the form.
Section C – This section explains the purpose of the form so has no entry fields. You won’t see it in our HUD settlement statement software until you print out the final form.
Section D – Fill in the name and full mailing address of the borrower. If you are using our software click on the address book icon in the upper right corner, select the borrower’s name from the contact list and the details will be filled in. If there is more than one borrower, click on “More…” to enter up to eight names.
Section E – Enter the name and full mailing address of the seller, using the same options you had in Section D. Provide the Tax ID Number (TIN) to be used on the 1099-S.
Section F – Complete this section with the name and full mailing address of the lender. As with sections C and D you can use the address book to pull the information from your contact list. This can be left blank if it is a cash sale.
Section G – Give the street address of the property. Since this is often the mailing address of the seller, or the borrower in the event of refinance, you can select the appropriate party and then click Copy to pull the information in automatically. If there is no street address, enter a brief legal description of the property. Also enter theLot # and/or Block # if appropriate.
Section H – The settlement agent’s name and mailing address will automatically be pulled from the software’s Default Settings, although you can change it if you wish. Also enter the address of the Place of Settlement.
Section I – Enter the Settlement Date. The HUD-1 software will automatically copy the date to the Funding Date, though you can change that if desired. The Funding Date carries over to line 901, covered in a future entry.
Follow along this and future articles with your own copy of Easy HUD, or download a demo from our selection of law practice management software if you haven’t purchased the application yet.