Has FHA revised the Settlement Certification (former Addendum to HUD-1 Settlement Statement)?

Yes, as announced with the publication of the Single Family Housing Policy Handbook 4000.1, FHA updated the Settlement Certification model language document, formerly known as the Addendum to HUD-1 Settlement Statement, to conform with the replacement of the Settlement Certification form.  The revised model document is available on the Single Family Mortgages Model Documents web page at https://www.hud.gov/program_offices/housing/sfh/model_documents  

Mortgagees were permitted to use the model language in the Settlement Certification for FHA-insured Title II forward mortgage applications on a voluntary basis until the mandatory implementation date of the Truth in Lending Act (TILA) - Real Estate Settlement Procedures Act (RESPA) Integrated Disclosure (TRID), which replaces the HUD-1 form. The Consumer Financial Protection Bureau (CFPB) established the implementation date of October 3, 2015. 

Mortgagees should continue using the Addendum to the HUD-1 published in Mortgagee Letter 2010-39 for all Home Equity Conversion Mortgages (HECM). 

For more information see FHA INFO 15-38 & 15-39 which are available from the Announcements Archives web page at https://www.hud.gov/program_offices/housing/sfh/FHA_info_messages

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-05135