The Correct Amount of Mortgage Insurance on Page 3 of the New HUD-1

We've heard some discord over what exactly is the proper method for calculating the total monthly payment in the Loan Terms section on page 3 of the new HUD-1. Some lenders show the total monthly payment in the final box as PIMI + all monthly escrow amounts (including MI) ...resulting in a doubling of MI amounts in the total payment figure. When asked to explain their math, lenders point to the example Loan Terms section in HUD's Settlement Cost Booklet. Other lenders correctly followed the instructions and wording of the form and Rule itself, and correctly surmised that monthly PIMI amounts should be included in box 4 of this section - leaving only additional escrow items to be added in the bottom box which represents the total monthly payment. HUD has since revised the Settlement Cost Booklet to correct the mathematical error, the revised booklet is linked here ... see page 29 for the updated example Loan Summary section. If you are a lender who is calculating costs incorrectly (or if you know of one) please share this information with compliance staff in the organization.