HUD-1 Uniform Settlement Statement
Definition and meaning of HUD-1 Uniform Settlement Statement in real estate.
The HUD-1 Uniform Settlement Statement is a standard government form that was historically used to list all charges, credits, and cash flows in a real estate transaction or refinancing. It provides a detailed line-item breakdown of the money paid and received by both the buyer and the seller.
In more detail
While the HUD-1 form remains in use for certain transactions, such as reverse mortgages and home equity lines of credit, it has been largely replaced. For most residential home loans, federal regulations replaced the HUD-1 statement with the Closing Disclosure form. When the HUD-1 is used, the settlement agent prepares the document, which must be reviewed by both parties prior to or at the closing table.
The statement details mortgage origination fees, title insurance premiums, escrow deposits, commissions, and property tax adjustments. Reviewing this document helps ensure there are no unexpected fees or changes in loan terms at the last minute.
Key facts
| Category | Legal, Titles & Closing |
|---|---|
| Replaced by | Closing Disclosure form for most modern home loans |
| Prepared by | The settlement agent or title company |
| Applies to | Reverse mortgages, HELOCs, and some mobile home loans |
At the closing of a reverse mortgage, the borrower signs the HUD-1 Uniform Settlement Statement, confirming the final transaction fees and loan disbursements.
Frequently asked questions
What is the difference between a HUD-1 statement and a Closing Disclosure?
The HUD-1 is an older settlement form, while the Closing Disclosure is the modern form required under federal rules for most standard consumer home mortgages.
Should I keep my HUD-1 statement after closing?
Yes, you should keep the HUD-1 statement indefinitely, as it provides a record of your buying expenses that can be used to calculate tax basis when you sell the property.