The form is a common government real estate form which lists any and all charges that are placed onto a seller and borrower in a transaction for real estate.
When You Need A Uniform Settlement Statement or HUD-1 Form
The term HUD is short for the Department of Housing and Urban Development. When RESPA was passed by Congress, HUD was given the green light to create and form the uniform settlement statement. This form got an update recently with the goal of helping out interested buyers to understand their costs better.
If a federally regulated mortgage is a part of a transaction, then a HUD-1, or uniform settlement act is required to be used. Any mortgage that was before or on the third of October, 2015, will have a HUD-1 statement. Following 2015, a Closing Disclosure was used in place of HUD-1, changing the method that mortgages are closed and processed.
Are HUD-1 or Uniform Settlement Statements Still Used Now?
The statement is still being used to this day, but now they are used only for reverse mortgages. They are no longer used in other types of mortgage situations.
When is a Borrower Given a HUD-1?
In 2015 it was stated that a borrower would be given the HUD-1 at least a day before the closing. Changes to the HUD-1 could be made to this document mere hours before closing was complete. It is vital you go over the document with your agent in order to prevent errors.
