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| HUD-1, HUD-1A RESPA Settlement Statement Package, Version 2.03 | |
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The Housing and Urban Development-1 statement is an integral, essential document created in any residential real estate closing. Speedy and accurate production is mandatory for those who ordinarily conduct real estate closings. Ruth Technology Corp., a Madison, Wis., company, markets various real estate closing software, including the HUD-1 Real Estate Settlement Procedures Act and the HUD-1A RESPA Settlement statement packages. As a frequent attendee at closings, both from the perspective of the producer of the RESPA (in New York, the lender’s attorney prepares the RESPA), as well as from the perspective of the recipient of the RESPA (as counsel for the purchaser/borrower or seller), creation of the HUD certainly fills up time at the closing table. Information for the RESPA comes from various sources, including the lender, the title company and the seller. All of these deductions, additions and adjustments to the purchase price need to be reconciled and disclosed for clear, accurate presentation to all parties. I was able to test this program on a few closings; these included regular purchase and sale closings as well as refinance transactions. Armed with my laptop at the closing table, I tested both the HUD-1 program (for buy/sell transactions) as well as the HUD-1A program (for refinance transactions). Before sitting down at the closing table, I spent some time setting up both programs with information from the drop-down lists, such as lenders and settlement agents. The two programs are independent, standalone software; however, given they are marketed both individually and jointly, I was a bit annoyed the drop-down list information was not transferable from one package to the other. This software should be one package, as settlement agents who prepare the HUD-1 statement are also going to prepare the HUD-1A statement. Duplicating entries into the two programs is a waste of time. Data entry into the program was acceptable, although there were times I found hitting the “Tab” key didn’t take my cursor where expected. Instead, I found myself at the top of the page and I had to click to get to where I wanted to be. On the other hand, there are plenty of calculations the program will do for you, easing the pain of calculation and adjustment. For example, clicking on the “Prorate” button brought me to a screen calculating tax adjustments two ways, the ratio method (which calculates based on days elapsed) or the Regulation Z method (based upon tax months). The program allows you to cut and paste the numbers into the appropriate box on the form. I think there should be a button to send the adjustment to the proper line on the HUD. The program also automatically will calculate broker’s commissions with entry of the accurate percentage. The best feature of the HUD-1 program is the carry-forward of various closing costs disclosed on the second page of the HUD to the appropriate line on the first page. The program did this correctly time after time, and nothing pleased me more than having those numbers match to the penny. One especially pleasing feature of the HUD-1A statement program was its neat categorization of “Disbursements to Others” on lines 1501 to 1515. These items automatically deduct from the loan proceeds so the HUD accurately reflects the closing transaction. Finally, and most importantly, I had no problems with printing clean, accurate forms, in full compliance with federal regulations. The various messages in the print set-up suggest the manufacturer spent time making sure the printing works, and I was pleased with the printed material. Both of these programs are reasonably priced, especially together as a package. For those attorneys whose lenders require them to produce the HUD but no other closing documents, these programs should definitely be considered. |
Ruth
Technology Corp. Price: $149.95 for single-user license HUD-1 package; $99.95 for single-user license HUD-1A package; $199.95 for both packages. Windows 95/98/Me/Se/NT/2000/XP Reviewed by Denise P. Ward, Esq., Grean & Ward, Port Chester, N.Y. PROS CONS VERDICT |
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Updated
03/26/03 |
