HUD-1 Statement
What Is the HUD-1 Statement?
The HUD-1 Settlement Statement was a standardized form used to itemize all charges and credits in a real estate closing involving a mortgage.
It detailed:
- Loan costs
- Title fees
- Taxes
- Escrow charges
- Seller and buyer adjustments
The HUD-1 was largely replaced in 2015 by the Closing Disclosure for most residential mortgage transactions.
Why It Matters
The HUD-1 provided:
- Transparent breakdown of closing costs
- Final reconciliation of loan charges
- A side-by-side summary for buyer and seller
While no longer used for most residential loans, it may still appear in certain reverse mortgage or cash transactions.
How It Worked
- Provided at closing.
- Listed final settlement costs.
- Compared estimated fees to actual charges.
It ensured consumers could see exactly where funds were allocated.
HUD-1 vs. Closing Disclosure
HUD-1 → Pre-2015 standard settlement form
Closing Disclosure → Modern replacement for most mortgages
The purpose is similar, but format and timing differ.
FAQs About the HUD-1
Is the HUD-1 still used today?
It is primarily replaced but may appear in certain non-standard transactions.
Did the HUD-1 protect consumers?
It provided transparency but was replaced to simplify disclosures.
Can you request a copy?
Yes, closing documents are part of your transaction record.
Related Terms
