After 8-1-2015, the new Closing Disclosure will be the primary settlement document for residential real estate transactions. The new disclosure replaces the familiar HUD-1 and Truth-In-Lending Statement (TIL), combining most of the information from these documents.
The five-page Closing Disclosure does away with the old HUD numbering system, breaking out payments and charges into several sections on three pages and incorporating loan-related disclosures on two additional pages. Here’s a brief summary of each section.
CALCULATING COSTS TO CLOSE
This table shows the borrower any changes from the Loan Estimate, replacing the page 3 comparisons on the HUD-1.
SUMMARIES OF TRANSACTIONS
A clear table displaying a summary of the borrower’s transaction, including pro-rations. This section mirrors page 1 of the HUD-1 (except for the lender credit).
This table shows the borrower any changes from the Loan Estimate, replacing the page 3 comparisons on the HUD-1.
SUMMARIES OF TRANSACTIONS
A clear table displaying a summary of the borrower’s transaction, including pro-rations. This section mirrors page 1 of the HUD-1 (except for the lender credit).
Closing Disclosure, Page 3