In an effort to assist you with the transition to the new HUD-1 Settlement Statement we would like to send you some of our Frequently Asked Questions. We have also created a new web page that provides help 2010 HUD-1 tools and links. Visit the page at: http://www.oldrepublictitle.com/panational/Agent/2010HUD.asp

Below are our first three FAQs:

Q.   It's January - we have to start using the new HUD-1, right?

A.   Not necessarily. You only use the new HUD-1 when the originator issued the new GFE to the borrower.  Even though the file is closing in 2010, if it originated with the old GFE, you use the old HUD. The old GFE doesn't have the same sections as the new and therefore, you will not be able to compare the GFE to the HUD.

Q.   The lender is quoting all the transfer tax in GFE block 8; however, in PA the seller pays half. How do we work around that?

A.   Based on PA custom and practice, the borrower should only be quoted their portion of the transfer tax; however, not all lenders are aware of this.  Therefore, if the GFE indicates the full amount to the borrower, insert a credit on page 1 for the seller's portion.

Q.   How do you calculate the owner's portion of the premium for line 1103?

A.   Agents seem to be confused as to whether or not endorsements are included in this calculation.  Click here to view a worksheet on how to make the calculations for lines 1101 and 1103.