What change occurred regarding the HUD-1 Settlement Statement after October 3, 2015?

After October 3, 2015, the HUD-1 Settlement Statement was replaced by the Closing Disclosure. This change was part of the TILA-RESPA Integrated Disclosure (TRID) rule implemented by the Consumer Financial Protection Bureau (CFPB). The new Closing Disclosure consolidates the information previously found in both the HUD-1 and the Good Faith Estimate (GFE) into a single document designed to provide clearer and more transparent information regarding the costs of a mortgage loan and the closing process.

The Closing Disclosure allows borrowers to receive details about their loan terms and closing costs in a more user-friendly format, ensuring that they can better understand their financial obligations and make informed decisions before finalizing their property purchase. This transition sought to streamline the process and enhance consumer protection by simplifying the language and layout compared to the previous HUD-1 form.