www.hudclips.org 


U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, D. C. 20410-8000

JUN -3 1986
OFFICE OF THE ASSISTANT SECRETARY FOR
HOUSING-FEDERAL HOUSING COMMISSIONER
Mortgagee Letter 86-10 Addendum
       TO:  ALL APPROVED MORTGAGEES
       SUBJECT:  Mortgagee Letter 86-10, Single Family Production,
                 Requiring Signatures on HUD-1 Settlement Statement
 
            Mortgagee Letter 86-10  requires signed certifications
       from the buyer, seller and settlement agent on the HUD-1
       Settlement Statement for all FHA insured mortgages closed on
       or after July 1, 1986.
 
            The purpose of this is to amend the certification which
       the settlement agent must sign.  The certification should
       read:
 
                The HUD-1 Settlement Statement which I have prepared
                is a true and accurate account of this transaction.
                I have caused or will cause the funds to be disbursed
                in accordance with this statement.
 
                  ________________                     ___________
                  Settlement Agent                     Date
 
            In those settlements where all parties are not present at
       the loan closing, it is permissible for each party to certify
       and sign a separate HUD-1 or addendum.  All signatures do not
       need to appear on the same HUD-1 or addendum.
 
            We recognize that certain items on the HUD-1 (for
       example, the appraisal and credit report) are paid outside
       closing and the settlement agent may not have first-hand
       knowledge of these payments.  It is not HUD's intent for the
       settlement agent's certification to apply to those items.
 
                                 Very sincerely yours,
 
                                 Silvio J. DeBartolomeis
                                 General Deputy Assistant Secretary
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