Which parties have a right to see a HUD settlement statement?

Question

When a home is sold, and I am the lender (I do private lending), do I have the right to get the HUD settlement statement?

Greg H. · Answer

@Paul Winka

In that case, I would have submitted a payoff including a 25% profit based on the only information I had.  That would force the seller to come back to you with "proof " to get the number reduced

Tom Gimer · Answer

No, you don't have a right to see the HUD. It contains sensitive personal financial information.

Even if you were a party to that transaction, which you are not, you may only be entitled to a redacted copy.

Mark Dante · Answer

are you saying you are the lender for the buyer? If so, why not just stipulate that funding will be pending your approval of the HUD (like a conventional lender would)?

Tom Gimer · Answer

The term "HUD" is thrown around but remember the HUD-1 was replaced by the Closing Disclosure in 2015. For transactions where a CD is not required some still use the HUD-1 form. We don't ... we use ALTA settlement statements.

There are very specific CFR guidelines concerning the disclosure of consumers' non-public personal financial information. From the start of TRID this has been an issue and we prepared buyer-side and seller-side CDs only and lenders were facing stiff penalties for violations. Until very recently there were still major issues concerning whether the buyer's own real estate agent or the seller in the transaction were permitted to see the buyer's CD. The has been some clarification with opt-outs, waivers and specific instructions on redactions that address this.

When in doubt the answer is NO you cannot see the buyer's CD.

James Wise · Answer

It's written in the contract who has permission to see this. Typical parties included; Buyer, Seller, Realtors & Lenders. As a lender you should be reviewing this statement. If it's not written in the contract that you have permission I recommend you make it a condition of loan approval on the next one. You need to see things like where the down payment money came from.

Greg H. · Answer

Why do you think you are an interested party to the transaction ?  You submitted a payoff and will be paid via the proceeds.

Does your private lending contain a % of the profit provision ?

The lender for the purchaser will see and approve the HUD

Jay Hinrichs · Answer

Account Closed  the equity share notes I have done.. I simply put the payoff demand in with my % interest due plus whatever % of Net equity flowing out of the deal.

Now of course the borrower can jack it up by putting junior liens or other things on there to reduce the net..

However its an issue with borrower and lender not title co.. they are neutral

Paul Winka · Answer

Account Closed What would be the "receipt" of the transaction be if it was just an ordinary interest payoff? The only thing I really have is the email chain from the title company and the money that was deposited in my account. Is that enough for bookkeeping?

Account Closed · Answer

@Tom Gimer  is an expert on this.  I think when the title company asked for a payoff you should told them what information you needed before you could provide it.

Account Closed · Answer

I agree with Tom and Greg.  Unless the loan was the rare case where you were suppose to receive a portion of the profits then absolutely not.  If it was that type of loan the payoff you sent the title company would have triggered them to include all the financial data with your check.

Which parties have a right to see a HUD settlement statement?

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