19.1.3.4 Circulation and Submission of Recordable Documents

A. The RC Director will only sign original recordable closing documents (e.g., the Regulatory Agreement) when HUD deems the closing package to be substantially complete. See Section 19.1.2.

B. HUD will sign original recordable closing documents in counterpart when allowed under state and local law. If a recordable document is not signed in counterpart, Lender’s Counsel must obtain the nonHUD signatures first, and then submit the original to the RC Director for HUD signature. HUD may permit the designated escrow officer (e.g., title agent) to hold HUD signed documents in escrow.

C. The designated escrow officer engaged to close the Loan must review all documents submitted for recording to ensure compliance with local recording requirements.

D. Closing documents requiring recordation must be recorded prior to or on the day of closing, and prior to HUD’s delivery of the endorsed Note. The Regional Counsel and RC Director are authorized to deviate from this standard in jurisdictions where pre-recording or contemporaneous recording on the date of closing is not possible, or in other exigent circumstances. HUD generally permits pre-recording of documents (recorded prior to the HUD-approved closing date); Borrower and Lender assume all risk related thereto.

E. HUD requires two hard copies of each recorded document, except when instructed otherwise by the HUD Closing Attorney. The documents may be originals bearing evidence of recording from the recorder’s office, or copies certified by the title company to be true and correct copies of the document that was recorded. Title certified copies should specify the date of recording, recording information (document number, book, and page, etc.), and recording location (i.e., the county recorder’s office). Where documents are recorded post-Closing, Lender and Lender’s Counsel are responsible for ensuring the documents have been recorded in the proper order and that the title policy is updated with all recording information, either by endorsement or other customary practice.