Maybe namvet or one of the other loan officers will pop in and answer your question.
As far as I know, the the lender says HUD approval they are referring to the HUD1.
The HUD1 (also known as the closing statement) is prepared by the title company or closing attorney then turned over to the lender for 'approval' of the figures so you can close. The whole process is very quick from the time the title company submits the preliminary HUD to the banks' closing office for official approval. So when I saw you still hadn't closed yesterday, it occurred to me that maybe your loan officer was referring to something else. But I can't tell what. Here in S Fl we refer to HUD approval as the lenders approval of the HUD1 closing statement.