HUD-1 Settlement Statement
Related Terms: Closing Sheet, Settlement Form, HUD-1, Closing Disclosure
The HUD-1 Settlement Statement was a document that outlined home loan terms. It was replaced by the Closing Disclosure form as of October, 2015, under the administration of the Consumer Financial Protection Bureau. (CFPB)
When the management of the Real Estate Settlement Procedures Act (RESPA)—a consumer protections statute—changed hands from the HUD to CFPB in August, 2015, a number of documents along with the HUD-1 were replaced. The HUD-1 was the standard form to be used for all mortgage settlements, which itemized all final terms and costs, and which party was liable to pay them.
The new Closing Disclosure works similarly, and details the terms and costs of the loan, including monthly payments, interest rates, closing costs, estimated taxes, etc. Just like the HUD-1, it must be given to buyers 3 days before the closing, giving them time to go over the information, and compare it to what was mentioned in the Loan Estimate (which replaced the Good Faith Estimate under the CFPB).
It is important that you, as a buyer, carefully read through the Closing Disclosure with your loan officer, just as you would have the HUD-1 Settlement.
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