(a) Permissible
changes—HUD-1. The following changes and insertions are permitted
when the HUD-1 settlement statement is reproduced:
(1) The person reproducing the HUD-1 may
insert its business name and logo in section A and may rearrange,
but not delete, the other information that appears in section A.
(2) The name, address, and other information
regarding the lender and settlement agent may be printed in sections
F and H, respectively.
(3) Reproduction
of the HUD-1 must conform to the terminology, sequence, and numbering
of line items as presented in lines 100-1400. However, blank lines
or items listed in lines 100-1400 that are not used locally or in
connection with mortgages by the lender may be deleted, except for
the following: Lines 100, 120, 200, 220, 300, 301, 302, 303, 400,
420, 500, 520, 600, 601, 602, 603, 700, 800, 900, 1000, 1100, 1200,
1300, and 1400. The form may be shortened correspondingly. The number
of a deleted item shall not be used for a substitute or new item,
but the number of a blank space on the HUD-1 may be used for a substitute
or new item.
(4) Charges not listed
on the HUD-1, but that are customary locally or pursuant to the lender’s
practice, may be inserted in blank spaces. Where existing blank spaces
on the HUD-1 are insufficient, additional lines and spaces may be
added and numbered in sequence with spaces on the HUD-1.
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(5) The following variations in layout
and format are within the discretion of persons reproducing the HUD-1
and do not require prior Bureau approval: Size of pages; tint or color
of pages; size and style of type or print; vertical spacing between
lines or provision for additional horizontal space on lines (for example,
to provide sufficient space for recording time periods used in prorations);
printing of the HUD-1 contents on separate pages, on the front and
back of a single page, or on one continuous page; use of multicopy
tear-out sets; printing on rolls for computer purposes; reorganization
of sections B through I, when necessary to accommodate computer printing;
and manner of placement of the HUD number, but not the OMB approval
number, neither of which may be deleted. The expiration date associated
with the OMB number listed on the form may be deleted. Any changes
in the HUD number or OMB approval number may be announced by notice
in the Federal Register, rather than by amendment of this part.
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(6) The borrower’s information
and the seller’s information may be provided on separate pages.
(7) Signature lines may be added.
(8) The HUD-1 may be translated into
languages other than English.
(9)
An additional page may be attached to the HUD-1 for the purpose of
including customary recitals and information used locally in real
estate settlements; for example, breakdown of payoff figures, a breakdown
of the borrower’s total monthly mortgage payments, check disbursements,
a statement indicating receipt of funds, applicable special stipulations
between buyer and seller, and the date funds are transferred. If space
permits, such information may be added at the end of the HUD-1.
(10) As required by HUD/FHA in FHA-insured
loans.
(11) As allowed by section
1024.17, relating to an initial escrow account statement.
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(b) Permissible changes—HUD-1A. The
changes and insertions on the HUD-1 permitted under paragraph (a)
of this section are also permitted when the HUD-1A settlement statement
is reproduced, except the changes described in paragraphs (a)(3) and
(6) of this section.
(c) Written
approval. Any other deviation in the HUD-1 or HUD-1A forms is
permissible only upon receipt of written approval of the Bureau; provided,
however, that notwithstanding contrary instructions in this section
or appendix A of this part, reproducing the HUD-1 or HUD-1A forms
with the Bureau’s OMB approval number displayed in place of HUD’s
OMB approval number does not require the written approval of the Bureau.
A request to the Bureau for approval shall be submitted in writing
to the address indicated in the definition of Public Guidance Documents in section 1024.2 and shall state the reasons why the applicant
believes such deviation is needed. The prescribed form(s) must be
used until approval is received.
