2015 Release Notes (InheriTax)

Release Notes for PA InheriTax, 2015

09/23/2015 (12:35 pm): Several users this morning expressed interest in continuing to use the HUD-1 for closings (including cash-only transactions) that do not require the new Closing Disclosure form. We will not be removing the HUD-1 from the InheriTax package, so you will able to continue using it in its current format without interruption.

09/22/2015 (10:00 pm)

Message for All HUD-1 Users

As many of you know, we have supported HUD-1 software since 1984. Shortly after releasing the Windows version of our PA InheriTax software in 2000, we added HUD-1 software as a complimentary addition to the InheriTax package. Users at many law firms found this to be a useful pair of applications for their practices. Some continued to use only the InheriTax portion, and others used only the HUD-1 portion.

During the past three weeks, we took a hard look at the Closing Disclosure regulations, final rule, etc., that will replace the HUD-1 for most closings starting in October. We discussed the procedures with both a local title company and the Consumer Finance Protection Bureau (which replied to our e-mail of 9/1/2015 with a helpful phone call on the evening of 9/8/2015). We even programmed most of pages 2 and 3 of the new form.

We discovered, however, that the forms alone have expanded from the three-page HUD-1 settlement statement to 30 or 40 potential new pages (variations of the five-page Closing Disclosure, ALTA settlement statement, etc.). There is also an electronic data transfer system (Closing Insight from RealEC, or its equivalent) that some banks are going to require. Thus, what used to be a relatively simple form has evolved into an entire and somewhat complex “ecosystem”.

In additional to the Closing Disclosure (which is the replacement for the HUD-1, where applicable) there is a new Loan Estimate form that mirrors the Closing Disclosure. This form will typically be completed by the lender, and will serve as the source for most information required by the Closing Disclosure. This is where “Closing Insight” (or its equivalent) comes into play, to provide a way to transfer this data electronically.

The 2010 version of the HUD-1 will continue to be required for certain federally related consumer loans (reverse mortgages, home equity lines of credit, and mobile home loans). Most other closed-end consumer mortgages, however, will require the use of the new Closing Disclosure form for all loan applications submitted on or after October 3, 2015.

As a result, we have decided not to develop a Closing Disclosure solution. We will, however, continue to support our existing HUD-1 software through 12/31/2015.

To help you make a prompt and smooth transition, we have conducted significant research on the subject on your behalf. Here are our findings:

1) YouTube video (“Closings With New Closing Disclosure Forms” by EasySoft, 26 minutes):http://youtu.be/aJyUenl7AqA.

You might want to make this the first step that you take. It provides an excellent overview of the new procedures.

2) We have identified four (4) companies that offer solutions for both the existing HUD-1 and the new Closing Disclosure (with company starting year noted in parentheses):

(a) EasySoft (1985): www.easysoft-usa.com

(b) TitleExpress/TSS (1993):&a