The Certification of Settlement Agent to the Closing Disclosure for a Federal Housing Administration ("FHA") insured loan transaction reads as follows:
To the best of my knowledge, the Closing Disclosure which I have prepared is a true and accurate account of the funds which were (i) received, or (ii) paid outside closing, and the funds received have been or will be disbursed by the undersigned as part of the settlement of this transaction. I further certify that I have obtained the above certifications which were executed by the borrower(s) and seller(s) as indicated. (emphasis added.)
According to the FHA's Single Family Housing Policy Handbook (HUD Handbook 4000.1) Frequently Asked Questions (“FAQ”) 374, before executing the Certification, the settlement agent should remove or strike through the statement "which I have prepared," if the settlement agent has not prepared the Closing Disclosure. FHA’s FAQ 374, states:
Q. The Model Settlement Certification requires the Settlement Agent certifying that he or she has prepared the Closing Disclosure but the CFPB's requirements for issuing the new TRID Closing Disclosure will make this unlikely to be the case. Should the Settlement Agent sign the form anyway?
A: FHA does not wish for anyone to make a false certification. Because this is a model document, FHA will accept the tailoring of this phrase to the actual circumstances. Thus, if the Settlement agent does not prepare the closing disclosure, he or she should remove or strike through the statement "which I have prepared" before executing the Settlement Certification.
Consequently, the FHA will accept the tailoring of the Certification when the Closing Disclosure is prepared by the lender and not the settlement agent.