This document is provided pursuant to the provisions of VA Circ. 26-10-1 & 26-10-9 and provides an itemization of Lines 801 and 1101 of the HUD-1 Settlement Statement, plus an itemization of credits to the borrower.
The Department of Veterans’ Affairs has published new VA Circ. 26-15-06, which requires additional itemizations. These include itemizations of:
- Line 802, to disclose the amounts for broker compensation and discount points/premium pricing; and
- The 200-line series, if all lender/seller credits are displayed as a lump-sum in such series. Both an itemization of the individual credits and a clear indication of the source of such credits should be made.
Additional rules promulgated in this Circular include:
- All lender/seller credits should be placed in the 200-line series of the HUD-1 and not in the 800-line series (such credits do not include a credit or charge for the chosen interest rate, which are disclosed in Line 802); and
- Credits for the interest rate chosen cannot be used to pay for unallowable fees.
In order to comply with this Circular, we will be expanding Cx14692 to include an itemization of all components of Line 802 amounts. In addition, we will be modifying the disclaimer accompanying the “Itemization of Credits to Borrower for Fees Paid by Others” section to state the following:
“Credits itemized here may also be listed in the itemizations of 801, 802, or 1101 shown above and/or can include credits disclosed in the 200-line series of the HUD-1.”
We will also be changing the title of the document to “Origination Statement Itemizing Certain HUD-1 Settlement Statement Fees and Credits.”
A new data integrity check will be added to display this warning for VA loans in ConformX if “Include Originator Fee Credits to Borrower in 802 (No Cost Loan)?” (Field 43937) is set to “Yes”:
“Include Originator Fee Credits to Borrower in 802 (No Cost Loan)?” (field 43937) is set to “Yes”. For Veterans Affairs loans, all lender/seller credits must be placed in the 200-line series of the HUD-1 and not in the 800-line series.
These changes are effective immediately. The document edits to Cx14692 will be in place April 25, 2015. The data integrity warning will be in place May 1, 2015. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
April 23, 2015
TW 114652 & 114822