19.1.3.7 Closing Type: Mail or In-Person

A. Mail Closings. A closing by mail will be scheduled at Lender’s request, except as provided below. In requesting a closing by mail, Lender and Lender’s Counsel agree to adhere to the mail closing procedures of this subsection.

1. Standards for Denying a Request to Close by Mail . The RC Director and the appropriate Regional Counsel have the authority to deny a Lender request to close by mail if they determine that the complexity of the transaction necessitates an in-person closing.

2. Mail Closing Procedure . When closing by mail, Lender’s Counsel must follow these standards:

   • Package Format. Except as otherwise provided in this Chapter or when instructed otherwise by the HUD Closing Attorney, two (2) complete hard copy sets of the Closing Docket must be delivered to the HUD Closing Attorney at least two (2) business days in advance of the confirmed closing date (morning delivery unless the HUD Closing Attorney specifies otherwise). Lender’s Counsel is responsible for compiling the closing packages before delivering to HUD (including documents generally within the control of other parties), except that the Title Policy, recorded documents, and final building permits may be delivered on closing day (first overnight delivery or morning delivery by courier).

• Availability by Telephone. All parties to the transaction, including the RC Director, must be available by phone and email on closing day in case questions or issues arise.

• Failure to Close by Mail on HUD-Approved Closing Day. If there are problems with the Closing Docket as delivered (e.g . , delayed delivery, errors, or missing documents), the HUD Closing Attorney, in consultation with the RC Director and applicable Regional Counsel, will determine appropriate next-steps, which may include rejecting the entire closing package (Lender may request return of the package at Lender’s expense), and/or rescheduling closing for another day. Lender’s Counsel is solely responsible for ensuring that any package deficiencies are resolved.

• Endorsement and Delivery of Note. HUD will not deliver the endorsed Note until all documents are presented to, and approved by, the RC Director and HUD Closing Attorney. In addition, a preaddressed, pre-paid envelope and an appropriate cover letter must be provided for return delivery of the endorsed Note , or Lender’s Counsel may make alternate arrangements, as approved by the HUD Closing Attorney, for in-person pick-up of the endorsed Note (e.g . , courier service) .

B. In-Person Closing Procedures . An in-person closing will be scheduled at Lender’s request, or when the RC Director and Regional Counsel deny Lender’s request for a mail closing. The RC Director, in consultation with the HUD Closing Attorney, determines the location of in-person closings. In-person

MAP Guide, March 2021 Go to beginning of Chapter 19

Bookmarked Version Go to Acronym and Abbreviation List, Glossary, Index

Chapter 19 Page 19-8

To return to this page after clicking a link, press ALT + Back Arrow

Chapter 19 Closing Guide 19.2 Initial Loan Closing Procedures for New Construction and Substantial Rehabilitation

Go to Table of Contents

closings are generally held at the HUD office where the HUD Closing Attorney is located. HUD will not deliver an endorsed Note unless all documents are presented to, and approved by, the RC Director and HUD Closing Attorney. Lender’s Counsel is solely responsible for ensuring that any deficiencies in the Closing Docket are resolved. If there are problems with the Closing Docket as submitted, the HUD Closing Attorney, in consultation with the RC Director and applicable Regional Counsel, will determine appropriate next steps, which may include rescheduling closing for another day.