A settlement agent discovers a math error in the final HUD-1 Settlement Statement 30 minutes before closing that would result in the borrower owing an additional $500. What is the most appropriate action?
Correct Answer
B) Correct the error and provide the revised disclosure to all parties before closing
Under RESPA, the HUD-1 Settlement Statement must accurately reflect all charges and credits. Any material errors must be corrected and disclosed to all parties before closing to ensure transparency and compliance.
Why This Is the Correct Answer
Under RESPA, the HUD-1 Settlement Statement must accurately reflect all charges and credits. Any material errors must be corrected and disclosed to all parties before closing to ensure transparency and compliance.
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