Lender Pre-paid Items on the HUD-1 Settlement Statement

Generally, mortgage insurance and hazard insurance are policies purchased for specific periods with up front premium payments. Thus, the lender would collect for these at settlement to pay the insurance providers.

The line items in the 900 series would show a certain number of months for the mortgage insurance and years (usually just one) for the hazard insurance. The amount collected would pay the insurance providers the premium for that policy period in advance.

These items will be a DEBIT to the Buyer and show up on the left, "Paid from Borrower's Funds at Settlement" column.