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(a) Inspection one day
prior to settlement upon request by the borrower. The settlement
agent shall permit the borrower to inspect the HUD-1 or HUD-1A
settlement statement, completed to set forth those items that are
known to the settlement agent at the time of inspection, during the
business day immediately preceding settlement. Items related only to
the seller's transaction may be omitted from the HUD-1.
(b) Delivery. The settlement agent shall provide a completed
HUD-1 or HUD-1A to the borrower, the seller (if there is one), the
lender (if the lender is not the settlement agent), and/or their
agents. When the borrower's and seller's copies of the HUD-1 or HUD-1A
differ as permitted by the instructions in appendix A to this part,
both copies shall be provided to the lender (if the lender is not the
settlement agent). The settlement agent shall deliver the completed
HUD-1 or HUD-1A at or before the settlement, except as provided in
paragraphs (c) and (d) of this section.
(c) Waiver. The borrower may waive the right to delivery of the
completed HUD-1 or HUD-1A no later than at settlement by executing a
written waiver at or before settlement. In such case, the completed
HUD-1 or HUD-1A shall be mailed or delivered to the borrower, seller,
and lender (if the lender is not the settlement agent) as soon as
practicable after settlement.
(d) Exempt transactions. When the borrower or the borrower's
agent does not attend the settlement, or when the settlement agent
does not conduct a meeting of the parties for that purpose, the
transaction shall be exempt from the requirements of paragraphs (a)
and (b) of this section, except that the HUD-1 or HUD-1A shall be
mailed or delivered as soon as practicable after settlement.
(e) Recordkeeping. The lender shall retain each completed HUD-1
or HUD-1A and related documents for five years after settlement,
unless the lender disposes of its interest in the mortgage and does
not service the mortgage. In that case, the lender shall provide its
copy of the HUD-1 or HUD-1A to the owner or servicer of the mortgage
as a part of the transfer of the loan file. Such owner or servicer
shall retain the HUD-1 or HUD-1A for the remainder of the five-year
period. The Secretary shall have the right to inspect or require
copies of records covered by this paragraph (e).
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