HUD Says The New HUD-1 is Not a Disbursement Ledger!

Today HUD announced in its live webcast that the new HUD-1 form is no longer a disbursement ledger for the transaction. Of course, we knew this because there is not an itemization of each component of every fee. However, a second important part of this message was HUD's instruction to lenders stating that a lender's Closing Instructions need to specifically break down all disbursements the settlement agent is authorized to make (to a mortgage broker or other 3rd party payee). We've had many questions from settlement providers asking how they're to know what to disburse to whom. Here's the answer: the Closing Instructions must give you written direction. If you haven't seen the new webcast, it has some very good practical implementation guidance. It should be archived and available on demand by 3/19, you can access HUD's library here.