Who Prepare Hud-1 Document

What is the name of your state? Texas

I am getting ready to close on a new home, but my lender's attorneys and the title company are fighting over who prepares the Hud-1 document. Neither one of them is budging. Is there a law indicating which one should prepare it?

[HomeGuru]

Originally Posted by jsmall11

What is the name of your state? Texas

I am getting ready to close on a new home, but my lender's attorneys and the title company are fighting over who prepares the Hud-1 document. Neither one of them is budging. Is there a law indicating which one should prepare it?

**A: escrow or the closing entity prepares the HUD-1. The lender prepares their own mortgage closing statement.

So in this case is the title company or the lender the closing entity?

[HomeGuru]

Originally Posted by jsmall11

So in this case is the title company or the lender the closing entity?

**A: the lender certainly is not. What does your contract state? If the title company is an escrow and title company, then they shoudl do the closing.
Why isn't the Seller or the Seller's agent ( or your agent, if you have one) advising you? What the heck is going on here?

Our lending company is handling the escrow account and the title company is handling the policy insurance, which includes owners policy, mortgagee policy. and endorsements.

[nextwife]

Whomever the lender hires as their "closing agent" is typically responsible for the HUD 1. In our market, this may either be a "closing attorney" hired by the lender to do the closing, or the title company, if the lender retains them. WE even have some lenders still doing their own closings in-house, and in that case THEY prepare the HUD 1.

The buyers attorney, at least around here, is NOT normally the closing agent for the lender.

[HomeGuru]

Originally Posted by jsmall11

Our lending company is handling the escrow account and the title company is handling the policy insurance, which includes owners policy, mortgagee policy. and endorsements.

**A; are you saying the lending company is doing the transaction closing? Because there is a big difference between escrow closing and a lender's escrow account.

[nextwife]

Now, it may be the case that the title company will not issue an "insured closing letter" if anyone other than themselves prepares the HUD.

That is the question they are arguing about. Our lendor is saying they are responsible for the closing and they want to using their closing agent (attorney) to do the closing. That is where are escrow account is going to be set up for our taxes and insurance. Our builder says they are responsible for the closing and want to use their title companys attorneys to do the closing. Furthermore, the title company and the builder are owned by the same person(s) or entity. It sounds fishy to me.

[nextwife]

There are good reasons why a lender would wish a third party to do their closing - not the builder/title agency he owns.

That's what we thought and that is why our lendor is choosing a third party closing agent. No where in the contract that we signed did it say we had to use the closing agent the builder chooses. The only thing it said and we agreed to is that the builder chooses the title company. But now the title company is trying to act like a closing agency to get more money from us.

[HomeGuru]

So where in this mess is YOUR attorney?