MULTIPLE HUD-1s w/EQUITY LINE OF CREDIT
Applying Funds from First HUD to Equity Line Second HUD
When you have an order with two loans and HUD Statements, and the second loan is an equity line of credit where
the Buyer is not drawing any funds, follow these steps to transfer proceeds from the first HUD to the equity line of
credit (second) HUD in order to pay any charges associated with that second loan and “zero out” the HUDs.
1.
When completing the order entry, enter the Lender and Principal Amount
Amount of loan for both loans
Setting Up the Equity
2. Navigate to the Loan
Information & Funding
screen
3. Highlight the second loan
4. In the Construction/ Equity first draw amount field, enter 0.00; press the Tab key
5. In the Line drop-down, select an available line in the 200 section
6. In the text field, enter the text you wish to appear on the HUD-1
NOTE: If you have
any fees charged
by the second
Lender, in the
Load funding
type field, select
Gross.
Gross
By setting up the equity, the equity line
balance appears on the selected line of the
second HUD.
© 2014 Fidelity National Financial
Page 1 of 5
Dated: 08.22.2014
MULTIPLE HUD-1s w/EQUITY LINE OF CREDIT
Applying Funds from First HUD to Equity Line Second HUD
NOTE: after entering a second loan amount and Lender, SoftPro
Select automatically creates the SECOND LOAN, assigns it to a
SECOND HUD, and activates the HUDHUD-1 drop-down menu on
every HUD screen. As you enter charges, use this drop-down
menu to toggle between HUDs.
7. Enter all fees/charges for the first and second loan s (if applicable)
8. Verify that both HUD-1s are balanced to the anticipated Lender’s funds
Do You Have Charges on Second HUD?
⟩
If you have no charges on the second HUD, receipt and disburse funds as usual.
⟩
If you have charges on the second HUD, there are two pending receipts from the Buyer:
»
A pending receipt for the amount due on the first loan, and
»
A pending receipt for the amount of charges entered on the second loan (equity line of credit)
In our example, the Buyer
needs to bring in $88,850:
$88,650 for the first loan and
$200 for the second loan.
Receipting Buyer Funds
9. Navigate to the Register
10. Click the Add Transaction
icon
11. Select Receipt;
Receipt click OK
© 2014 Fidelity National Financial
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Dated: 08.22.2014
MULTIPLE HUD-1s w/EQUITY LINE OF CREDIT
Applying Funds from First HUD to Equity Line Second HUD
The Amount field automatically totals the Send
to HUD amount plus the Overage amount.
12. In the Receipt window, in the
Medium field, select the
appropriate form of payment
13. In the Payor code drop-down,
select BA
14. In the Memo field, enter Funds
for 1st and 2nd HUD
15. In the Send to HUD Amount field,
enter the amount due on the first
HUD
NOTE: If the Buyer brings in
excess funds to close, enter
that amount here less the
amount due on the second
HUD. SoftPro Select
automatically creates a refund
check to the Buyer.
16. In the Overage Amount field,
enter the amount due on the
second HUD
17. In the Check information area,
enter any necessary bank
information; click OK
The Pending Receipt for the
second HUD still displays, but
there is now a Pending Check
(out of the first HUD) to the
Buyer for the same amount.
© 2014 Fidelity National Financial
Page 3 of 5
Dated: 08.22.2014
MULTIPLE HUD-1s w/EQUITY LINE OF CREDIT
Applying Funds from First HUD to Equity Line Second HUD
Completing the HUD Transfer
18. Highlight the Pending Check to the Buyer
19. Click the Actions button > select Change
Pending Transaction Type > select HUD
Transfer ((-); click OK
20. Highlight the Pending HUD
Transfer > Click Print and Post
> select Post (or double click
the Pending HUD Transfer
Transfer)
ansfer
21. In the Transfer in section, in
the HUDHUD-1 drop-down, select
2
22. In the Send to HUD Amount,
Amount
enter the amount that appears
in the Apply to Closing
Amount to show the credit on
the second HUD
23. In the Apply to Closing
Amount field, press the F2 key
to clear the field; click OK
© 2014 Fidelity National Financial
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Dated: 08.22.2014
MULTIPLE HUD-1s w/EQUITY LINE OF CREDIT
Applying Funds from First HUD to Equity Line Second HUD
On the Register,
Register the amount to the Buyer is posted and transferred to the second HUD.
Posted Receipt
into second
(equity) HUD-1
Posted
Disbursement out
NOTE: If you have charges on the second HUD payable to your branch as the Settlement
Agent, then you will have two Ledger Transfers.
of first HUD-1
24. Receipt in the rest of the funds from the first Lender (and any other parties)
25. Disburse as normal
Completing these steps “zeroes out” both HUD statements where Line 303 shows a zero dollar amount for Cash
From/To Borrower.
Borrower
© 2014 Fidelity National Financial
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Dated: 08.22.2014