Based on the below RESPA FAQ, Lines 801, 802, and 803 of the HUD-1 may not contain any "Paid Outside of Closing" (P.O.C.) items.

HUD-1 - 800 series (RESPA FAQs, dated January 28, 2010, p. 44)

4) Q: If a borrower pays some of the origination charge prior to closing, how should it be disclosed on the HUD-1?

A: The full charge for origination, except for any charge for the specific interest rate chosen (points), must be shown on Line 801 of the HUD-1 to the left of the borrower‘s column. If the borrower pays some of the origination charge before settlement, an offsetting credit in that amount is shown on the first page of the HUD-1 in Lines 204 - 209. Lines 801, 802, and 803 of the HUD-1 may not contain any "Paid Outside of Closing" (P.O.C.) items.

In other words, the full amount, which includes the P.O.C. amount, must be reflected in Lines 801, 802, and 803.  Accordingly, for consistency purposes, DocMagic, Inc.'s Itemization of Amount Financed (IAF.TIL) and Specific Closing Instructions (SCI.MSC) have both been modified to match the HUD-1 Statement and now omits any reference to a yield spread premium (YSP) being P.O.C. and will be reflected similarly to the following example:

            YIELD SPREAD PREMIUM to:  Broker (1.000%) $3,000.00

Please note that if you wish to reflect YSP as being credited to the Borrower, you may select "Borrower" as the recipient of YSP from the "Select Paid To" drop-down menu in the "Premiums" section of DocMagic's "Charges/Fees/Premiums" tab so that the description looks like the below:

            YIELD SPREAD PREMIUM to:  Borrower (1.000%) $3,000.00

If you have any questions, please contact DocMagic's Customer Service Department, at (800) 649-1362.

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