There has been an important change made to the HUD-1 Settlement Statement, a form used during home closings to itemize all ingoing and outgoing funds. The Real Estate Settlement Procedures Act, also known as RESPA, requires that the HUD-1 Settlement Statement be properly filled out in each and every closing transaction involving a federally regulated mortgage loan.
Instead of the HUD-1 Settlement Statement, a new form called the Closing Disclosure Form should be used. The Consumer Financial Protection Bureau designed the new form so that home buyers can clearly identify their amount of their loan and the interest rate that will be due on it, as well as a projection of their monthly payments.
Additionally, buyers must be given the Closing Disclosure Form an additional three (3) days before the closing in order to give them ample time to consider the commitment of the mortgage loan.
It is important for all home buyers to review and carefully consider the paperwork involved at closing. A real estate attorney can help guide you through the process and answer any questions or concerns you may have.
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