(a) Inspection
one day prior to settlement upon request by the borrower. The
settlement agent shall permit the borrower to inspect the HUD-1 or
HUD-1A settlement statement, completed to set forth those items that
are known to the settlement agent at the time of inspection, during
the business day immediately preceding settlement. Items related only
to the seller’s transaction may be omitted from the HUD-1.
(b) Delivery. The settlement agent
shall provide a completed HUD-1 or HUD-1A to the borrower, the seller
(if there is one), the lender (if the lender is not the settlement
agent), and/or their agents. When the borrower’s and seller’s copies
of the HUD-1 or HUD-1A differ as permitted by the instructions in
Appendix A to this part, both copies shall be provided to the lender
(if the lender is not the settlement agent). The settlement agent
shall deliver the completed HUD-1 or HUD-1A at or before the settlement,
except as provided in paragraphs (c) and (d) of this section.
(c) Waiver. The borrower may waive
the right to delivery of the completed HUD-1 or HUD-1A no later than
at settlement by executing a written waiver at or before settlement.
In such case, the completed HUD-1 or HUD-1A shall be mailed or delivered
to the borrower, seller, and lender (if the lender is not the settlement
agent) as soon as practicable after settlement.
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(d) Exempt transactions. When the borrower
or the borrower’s agent does not attend the settlement, or when the
settlement agent does not conduct a meeting of the parties for that
purpose, the transaction shall be exempt from the requirements of
paragraphs (a) and (b) of this section, except that the HUD-1 or HUD-1A
shall be mailed or delivered as soon as practicable after settlement.
(e) Recordkeeping. The lender
shall retain each completed HUD-1 or HUD-1A and related documents
for five years after settlement, unless the lender disposes of its
interest in the mortgage and does not service the mortgage. In that
case, the lender shall provide its copy of the HUD-1 or HUD-1A to
the owner or servicer of the mortgage as a part of the transfer of
the loan file. Such owner or servicer shall retain the HUD-1 or HUD-1A
for the remainder of the five-year period. The Bureau shall have
the right to inspect or require copies of records covered by this
paragraph (e).
