Where do I place the reQuire release tracking fee in the new HUD-1 form?

Fri, 15 Jan 2010 03:04:55 GMT

2010 is here and the new RESPA HUD-1 goes into effect. Many of our customers have inquired as to the placement of the reQuire release tracking fee on these new HUD-1 settlement statements. We at reQuire cannot advise our customers as to where the fee should be placed. Such advice must come from your attorney. I can, however, let you know my understanding of the HUD-1 third party fee question based on my research, discussions with other attorneys, participation on RESPQ discussion panels and feedback from various presentations I've conducted over the past year. Here is the summary of my findings:

Question: Where do I place the reQuire release tracking fee in the new HUD-1 form?

Answer: In a Sales transaction the fee should be included in the 1300 series under the Seller's column.

If the transaction is a refinance the fee should be place as an "Outside the column" third-party fee under the 1101 series (Title Services and Lender's title insurance (from GFE #4). The payee should be reQuire, LLC and there should be a separate check cut for payment out of the disbursement account. This also means you need to include this third-party fee in your schedule fee list to the lender so that a proper GFE can be prepared.
Over all, it I believe if you keep the following in mind when discussing this with your counsel:

1.  The Fee should be is clearly distinguished as a third-party service fee,

2.  The Payee should be reQuire, LLC, and

3.  The fee should not be combined with other service fees that you or other third party service providers are collecting.

4.  You may not mark-up the fee.

While I believe that in the refinance transaction type the fee should be disclosed in the subsection of the 1101 series, I also believe that placement of the fee 1300 series of the HUD-1 as a "Release Tracking and Search" fee to require would not be fatal.
I leave you with this: I cannot serve as counsel for our customers and recommend that you seek a final determination of this and any question related to RESPA compliance from your underwriter's counsel or your corporate counsel. You are welcome to have your counsel contact me should they have any questions or wish to discuss this issue.

We at reQuire value your business and wish you and your family a Happy and Prosperous New Year!

Where do I place the reQuire release tracking fee in the new HUD-1 form?

Mon, 04 Jan 2010 03:36:13 GMT

2010 is here and the new RESPA HUD-1 goes into effect. Many of our customers have inquired as to the placement of the reQuire release tracking fee on the new HUD-1 settlement statement. reQuire cannot advise its customers as to where the fee should be placed - such advice must come from your attorney. I can, however, let you know my understanding of the HUD-1 third-party fee question based on my research, discussions with other attorneys, participation on RESPA discussion panels, and feedback from various presentations I've conducted over the past year. Here is the summary of my findings:

Question: Where do I place the reQuire release tracking fee in the new HUD-1 form?

Answer: In a Sales transaction, the fee should be included in the 1300 series under the Seller's column.

If the transaction is a Refinance, the fee should be placed as an "outside the column" third-party fee under the 1101 series (Title Services and Lender's title insurance from GFE #4). The payee should be reQuire, LLC, and there should be a separate check cut for payment out of the disbursement account. This also means you need to include this third-party fee in your schedule fee list to the lender so that a proper GFE can be prepared.

Over all, I believe you should keep the following in mind when discussing this with your counsel:

1.  The fee should be clearly distinguished as a third-party service fee,

2.  The Payee should be reQuire, LLC, and

3.  The fee should not be combined with other service fees that you or other third-party service providers are collecting.

4.  You may not mark-up the fee.

While I believe that in a Refinance transaction the fee should be disclosed in the subsection of the 1101 series, I also believe that placement of the fee in the 1300 series of the HUD-1 as a "Release Tracking and Search" fee to require would not be fatal.

I leave you with this: I cannot serve as counsel for reQuire customers and recommend that you seek a final determination of this and any question related to RESPA compliance from your underwriter's counsel or your corporate counsel. You are welcome to have your counsel contact me should they have any questions or wish to discuss this issue.

We at reQuire value your business and wish you and your family a Happy and Prosperous New Year!