The HUD-1 Settlement Statement is a document that lists all charges and credits to the buyer and to the seller in a real estate settlement, or all the charges in a mortgage refinance. If you applied for a mortgage on or before October 3, 2015, or if you are applying for a reverse mortgage, you receive a HUD-1. In transactions that do not include a seller—such as a refinance loan—the settlement agent may use the shortened HUD-1A form.
If you applied for a mortgage after October 3, 2015, for most types of mortgage loans you receive a form called the Closing Disclosure instead of a HUD-1.
In Texas, the HUD-1 Settlement Statement was traditionally used for real estate transactions to itemize all charges and credits to the buyer and seller. However, for most mortgage applications submitted after October 3, 2015, the Closing Disclosure form has replaced the HUD-1, as mandated by the TILA-RESPA Integrated Disclosure (TRID) rules implemented by the Consumer Financial Protection Bureau (CFPB). The Closing Disclosure provides similar information but in a more consumer-friendly format. The HUD-1 or HUD-1A forms are still used for reverse mortgages or for certain cash transactions without a seller. These documents ensure transparency in the financial details of the transaction and are a critical part of the closing process in Texas, as in other states.
