HUD-1 Statement

The HUD-1 statement, named for the U.S. Department of Housing and Urban Development, was a standardized settlement form that itemized every fee and charge involved in a real estate purchase or refinance transaction, giving both the buyer and seller a complete, side-by-side accounting of the money changing hands at closing. It was required under the Real Estate Settlement Procedures Act (RESPA) for most residential mortgage transactions in the United States for several decades, listing items such as the loan amount, origination fees, title insurance, recording fees, and prorated property taxes.

The HUD-1 was largely replaced starting in October 2015 by a newer, consolidated form called the Closing Disclosure, introduced as part of the Consumer Financial Protection Bureau's "Know Before You Owe" rule, which merged several previously separate disclosure forms, including the HUD-1 and the earlier Truth in Lending disclosure, into a single, more consumer-friendly document.

Buying a home involves far more costs than just the purchase price itself, lender fees, title company charges, government recording fees, and prorated expenses the seller and buyer split based on the closing date, and the HUD-1 statement was designed to lay all of these out in one place so that nothing was hidden or buried until the very last moment at the closing table. Before its introduction, settlement costs could be scattered across multiple documents, making it harder for buyers to see the full financial picture of the transaction they were completing.

• The loan amount, interest rate, and origination charges associated with the mortgage.
• Title-related charges, including title search and title insurance premiums.
• Government recording and transfer fees associated with officially registering the property transfer.
• Prorated amounts such as property taxes and homeowner association dues, split between buyer and seller based on the closing date.

Regulators found that having separate disclosure forms, each covering a different piece of the transaction's costs, made it harder for consumers to compare loan offers and understand the true total cost of a mortgage before committing. The Closing Disclosure that replaced the HUD-1 was specifically designed to standardize the format across lenders and to require it be delivered to the borrower several business days before closing, rather than potentially for the first time only at the closing table itself, giving buyers meaningfully more time to review and question the figures.

A small number of transaction types not covered by the newer integrated disclosure rule, such as certain reverse mortgages and some loans not secured by real property, may still use a HUD-1 or a similar settlement statement, though the vast majority of ordinary home purchase and refinance transactions in the United States now use the Closing Disclosure form instead.

While the HUD-1 presented closing costs largely as a long, itemized list organized by category, the Closing Disclosure reorganized the same type of information into a shorter, more tightly structured document with clearer sections for loan terms, projected payments, and total closing costs, specifically aimed at making it easier for an ordinary consumer to understand the key figures at a glance rather than needing to interpret a dense, line-by-line accounting format. Both documents ultimately served the same underlying purpose, full transparency about the costs of a real estate transaction, but differ significantly in layout, required delivery timing, and the degree of standardization enforced across different lenders.

Although new transactions no longer use the HUD-1, homeowners who purchased or refinanced before the October 2015 transition may still hold a HUD-1 statement among their records, and it remains a legitimate historical record of a property's past closing costs, useful for tax purposes or for understanding the terms of an older mortgage that may still be active today.

Even today, title companies and real estate attorneys occasionally reference the HUD-1's categories informally when explaining closing costs to clients, since its line-item structure, now absorbed into the Closing Disclosure, still shapes how settlement costs are commonly organized and discussed.

Real estate professionals who worked through the transition sometimes still informally call the Closing Disclosure's cost breakdown a HUD-style statement, a verbal habit that has outlasted the actual form itself.

A buyer working with a bank on a modern purchase will receive the Closing Disclosure rather than a HUD-1, but the underlying categories of cost it lists trace directly back to the older form's structure.

• Consumer Financial Protection Bureau