Bulletin: NY000028

Date:
June 10, 1991
To:
All Underwritten Companies
RE:
Settlement Certification - HUD-1 Addendum - Single Family FHA Insured Transactions

Dear Associates:

1. Recently, HUD has issued Mortgage Letter 91-9. This recent Letter requires settlement agents to execute an Addendum to the HUD-1 Settlement Statement and Certification on single family FHA insured transactions. Accordingly, HUD has directed that loan proceeds not be disbursed in the event that the settlement party has actual knowledge that the source of funds is not as described in the closing instructions.

2. Escrow Account Statement-RESPA Transactions. HUD has issued new regulations concerning escrow account statements. These regulations obligate the lender to give the borrower, at closing or within 45 days thereafter, an escrow statement. Such statement may be provided to the borrower at closing and included in the HUD-1 Statement or attached to same as an additional page.

In the event you have any questions concerning the above, please do not hesitate to contact me at your earliest convenience.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
5.16 Escrow Closings
 
17.04 Real Estate Settlement Procedures Act (RESPA)
Exceptions Manual:
None
Forms:
None