The Department of Veterans Affairs (VA) has provided updates and clarification for the breakdown of credits and fees in the 200 series and the 800 series of the HUD-1 Settlement Statement in Circular 26-15-6.  Previously, lenders were only required to provide a breakdown of the charges in line 801 (along with the itemization of the title fees in line 1101).  The requirements have been updated to include itemization of the 200 series and the 800 series, with clarification that credits cannot be given in line 803 to offset any unallowable fees.

Lender and seller credits may not be included in the 800 series of the HUD-1 Settlement Statement, according to the circular provided by VA. These are different from the credit or charge that is assessed for the chosen interest rate, which is required to be disclosed in line 802.  The only amounts that are to be entered into line 802 are broker compensation, discount points and premium pricing.

The blank lines within each series may be used for the itemization or the lender may choose to itemize charges on an attachment to the HUD that has been signed by the Veteran.  By itemizing these additional lines, the lender is more clearly able to show they are within the 1% allowable origination charge. These new requirements are effective for all VA loans closed on or after May 1, 2015.

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