Use of HUD-1 or HUD-1A settlement statements.

CFR · 2024-01-01 · US · Title 12

(a) (b) (1) (2) (ii) The settlement service provider shall define the particular class of transactions for purposes of calculating the average charge as all transactions involving federally related mortgage loans for: (A) A period of time as determined by the settlement service provider, but not less than 30 calendar days and not more than 6 months; (B) A geographic area as determined by the settlement service provider; and (C) A type of loan as determined by the settlement service provider. (iii) A settlement service provider may use an average charge in the same class of transactions for which the charge was calculated. If the settlement service provider uses the average charge for any transaction in the class, the settlement service provider must use the same average charge in every transaction within that class for which a GFE was provided. (iv) The use of an average charge is not permitted for any settlement service if the charge for the service is based on the loan amount or property value. For example, an average charge may not be used for transfer taxes, interest charges, reserves or escrow, or any type of insurance, including mortgage insurance, title insurance, or hazard insurance. (v) The settlement service provider must retain all documentation used to calculate the average charge for a particular class of transactions for at least 3 years after any settlement for which that average charge was used. (c)

official document · source cfr-2024 · id 12:§ 1024.8