" I am getting conflicting answers."
Actually, there's a reason for that. With the old HUD-1 closing statements, no two lenders filled them out the same and interpreted it "their way". With the new "settlement statement" forms it's actually gotten worse. There is no fixed format like with the HUD-1 closing statement. That makes for inconsistent terminology and convoluted math. For example, points are basically pre-paid interest on the mortgage and are deductible. But "origination charges" can include points, and other charges that may or may not be deductible. So if you think the HUD-1 was confusing before, it was a piece of cake compared to some of the so-called "simpler" settlement statements.
The industry changed the form with the supposed intent of making it easier and simpler to understand. It backfired. All that really needed to be done was to provide clearer guidance and definition of the existing HUD-1 forum to mortgage lenders, and require them to follow it in a more uniform and standardized manner.
With the new statement, it can be such a nightmare that you have to sit down with your loan officer and get clear definitions *in writing* of just exactly what each charge is and what it includes. Otherwise if audited, the absurd vagueness of the new form leaves you at the mercy of what the IRS says it is.
