As of August 1, 2015, the HUD-1 settlement statement will no longer be used in real estate closings. It will be replaced by a Closing Disclosure which is five pages long. The Consumer Financial Protection Bureau (CFPB) has taken over administration of the Real Estate Settlement Procedures Act (RESPA) from HUD.
If you are in the real estate business, you may want to familiarize yourself with this new document. You can review it by going to the CFPB web site at: http://files.consumerfinance.gov/f/201311_cfpb_kbyo_closing-disclosure.pdf. This new Closing Disclosure includes both the RESPA and Truth in Lending Act (TILA) requirements. This disclosure must be given to the consumer three business days prior to closing. The National Association of Realtors (NAR) recommends that you have everything ready seven days prior to closing to help alleviate some of the hurdles that may arise.
In addition to the Closing Disclosure, there will also be a new Loan Estimate form. This replaces the Good Faith Estimate (GFE). Here is a link to the CFPB web site to review this form: http://files.consumerfinance.gov/f/201311_cfpb_kbyo_loan-estimate.pdf. Lenders must submit this form to the consumer three business days after an application is submitted. This will be helpful for consumers if they are comparing costs and features of different loans.
Tammy Hayes, REALTOR, RE/MAX Palm Realty, email@example.com