The Department of Veterans Affairs recently issued VA Circular 26-15-6, click here, regarding itemization of certain charges and credits disclosed on the HUD-1. In addition to the clarifications and requirements in the body of VA Circular 26-15-6, it also contains four examples attached as Exhibit A, Exhibit B, Exhibit C, and Exhibit D, respectively – to view or print an Exhibit, click on the appropriate Exhibit hyperlink above. VA Circular 26-15-6 is effective for all loans closed on or after May 1, 2015. VA Circular 26-15-6 clarifies and establishes VA policy regarding: Itemization of lender/seller credits in the 200 series of the HUD-1. Itemization of line 801 on the HUD-1. Clarification that credits reflected on line 803 of the HUD-1 cannot offset unallowable fees. Itemization of line 802 on the HUD-1. The Circular permits lenders to use either the blank lines available in the 200 and 800 series of the HUD-1 for itemization or to provide any form of itemization that provides a clear breakdown of the credits and charges shown in the those series of the HUD-1. The Circular requires that attachments providing the breakdown/itemization of fees and charges be signed by the Veteran.

Complete Memorandum