HUD-1 Settlement Statement
The HUD-1 Settlement Statement was a document used to outline the terms of a home loan and itemize the final costs associated with a mortgage settlement. However, it has been replaced by the Closing Disclosure form as of October 2015, following the transfer of oversight of the Real Estate Settlement Procedures Act (RESPA) to the Consumer Financial Protection Bureau (CFPB).
Prior to this change, the HUD-1 was the standard form for all mortgage settlements, detailing all final terms, costs, and the responsibilities of each party involved in the transaction.
The new Closing Disclosure functions similarly to the HUD-1, detailing the terms and costs of the loan, such as monthly payments, interest rates, closing costs, and estimated taxes. Like the HUD-1, the Closing Disclosure must be provided to buyers at least three days before the closing date, allowing them adequate time to review the information and compare it with the Loan Estimate, which has replaced the Good Faith Estimate under CFPB regulations.
As a buyer, it is essential to carefully review the Closing Disclosure with your loan officer, just as you would have with the HUD-1 Settlement Statement, to ensure you fully understand the terms of your mortgage and any associated costs.
