The HUD-1 Closing Statement for Mortgages

The HUD-1, also known as the settlement statement, is a prescribed form from the U.S. Department of Housing and Urban Development (HUD). This form itemizes all charges imposed on the borrower and all charges imposed on the seller in connection with the settlement of your real estate transaction.One business day before the settlement, you have the right to inspect your HUD-1 Settlement Statement.

The HUD-1 is filled out by the settlement agent who will conduct the settlement. The fully completed HUD-1 Settlement Statement generally must be delivered or mailed to you at or before the settlement. In cases where there is no settlement meeting, the escrow agent will mail you the HUD-1 after settlement, and you have no right to inspect it one day before settlement.

As of January 1, 2010 the rules have changed. Costs listed on the closing statement are reconciled against the Good Faith Estimate provided by the loan officer. Any differences in lender fees, title company fees and state transfer fees are now paid out of the loan officers earnings on the loan.

Differences in third party fees and escrows are not. (Ask me about this) This form is even more confusing that it used to be. Regardless safeguards are in place for the borrowers protection.