Confused by your Settlement Statement?

Real Estate Agent with Downing Frye Realty Inc

HUD-1 Settlement Statement Changes


In July of 2012 the Consumer Financial Protection Bureau announced their proposed revisions to the GFE, TIL and HUD-1, in order to redesign settlement documents to be easier for consumers to understand.  After nearly 18 months of soliciting industry feedback and deliberating a wide range of opinions, the CFPB has published the TILA/RESPA Integrated Closing Disclosure Rule.


Below are some interesting highlights of the Integrated Closing Disclosure Rule:

  • The CFPB acknowledges that consumers can save money if they shop around for their own service providers for title and settlement services.
  • The Loan Estimate Form replaces the early Truth-In-Lending statement and the Good Faith Estimate.  It must be provided to consumers within three (3) business days after they submit a loan application.
  • The Closing Disclosure Form replaces the final Truth-In-Lending statement and the HUD-1 Settlement Statement.  Consumers must receive this form three (3) business days before closing on a loan.
  • This rule will be in effect starting August 1, 2015, and all impacted loans originating after this date will require the new mortgage disclosures.
  • Events such as significant changes to APR, changes in the loan product, or the addition of a prepayment penalty would justify a 3 day retrigger.
  • Saturday would count as a business day only if the lender is open for business on Saturdays.
  • Title and settlement fees are excluded from the APR calculation.
  • Lenders are permitted to work with settlement agents to prepare and deliver the new Closing Disclosure Form.
  • Both of the new disclosure forms will be available in English and Spanish versions.

To help you understand how these changes may impact you, please contact Sergio & Jan Hernandez and put their real estate knowledge and expertise to work for you

Comments (2)

Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

August is going to be an interesting and challenging month, as everyone works to satisfy the new time frames.

May 07, 2015 05:14 AM
Sergio & Jan Hernandez
Downing Frye Realty Inc - Naples, FL

Yes, Sharon!  Interesting to say the least!

May 07, 2015 05:25 AM