The HUD-1 Settlement Statement was a standard form in use in the United States of America which was used to itemize services and fees charged to the borrower by the lender or broker when applying for a loan for the purpose of purchasing or refinancing real estate. HUD refers to the Department of Housing and Urban Development.
The borrower had the right to inspect the HUD-1 one day prior to day of settlement. The form would have been filled out by the settlement agent who would conduct the settlement.
Beginning in 2010, the HUD-1 settlement statement also contained what was referred to as a Good Faith Estimate or GFE. This additional set of figures specified estimated settlement figures provided by the lender upon application of the loan.
Borrowers could compare their Good Faith Estimate to the HUD-1 Settlement Statement and ask their lender or broker about any changes.
As part of new rules established by the Consumer Financial Protection Bureau effective October 3, 2015, the HUD-1 Settlement Statement became obsolete. It has been replaced by a document called the Closing Disclosure that consolidates the HUD-1, Good Faith Estimate, and Truth in Lending Act disclosures.
Video HUD-1 Settlement Statement
References
- RESPA - Real Estate Settlement Procedures Act
- Simple guide to the HUD-1 Settlement Statement
Source of the article : Wikipedia
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