(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
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
(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).
(Approved by the Office of Management and Budget under control
57 FR 49607, Nov. 2, 1992; 59 FR 6515, Feb. 10, 1994; 61 FR 13232, 13238, March 26, 1996.