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Last Updated on 11/30/2022 by Mark Verhoeven

Uniform settlement statement

The following article will cover all aspects of a Uniform Settlement Statement (HUD-1) including: What is a Uniform Settlement Statement, How does a Uniform Settlement Statement work, What’s Included on a Uniform Settlement Statement and the importance of a Uniform Settlement Statement.

Uniform Settlement Statement Definition

Uniform settlement statement explained

The HUD-1 is a standardized mortgage lending form used in the United States of America that lists all costs imposed on purchasers and sellers in consumer credit mortgage transactions.

The HUD-1 (or a comparable variant known as the HUD-1A) is generally used for reverse mortgages and refinances. The Department of Housing and Urban Development is referred to as ‘HUD’ in the form’s name.

Uniform settlement statement process

All fees associated with finalizing the transaction are listed on the Uniform Settlement Statement. The form must be used as a standard real estate settlement form in reverse mortgage and mortgage refinance transactions, according to federal law.

Borrowers must also be given a copy of the HUD-1 at least one day before settlement, though figures can be added, rectified, or modified until the parties are sitting at the closing table.

The form is usually reviewed by a real estate agent, attorney, or settlement agent. Even if there is no loan involved, buyers are called identified as “borrowers” on the HUD-1 form.

In a consumer credit mortgage transaction, creditors or their closing agents utilize this document to create an itemized account of all charges and credits to the buyer and seller. For reverse mortgages and mortgage refinances, the HUD-1 form is most typically utilized.

Included on a uniform settlement statement form

A loan origination cost, discount points, payment for a credit report, and fees for the appraisal and flood certification are among the items on the borrower’s list. Prepaid interest costs, homeowner’s insurance fees, property taxes, owner’s and lender’s title insurance, and closing agency fees may also be included.

The real estate commission, any legally agreed-upon buyer credit, and mortgage pay-off information may all be itemized on the itemized seller list. The seller’s itemized charges are usually less than the buyer’s.

The totals of the figures on the HUD-1 verso are transported to the form’s recto, or front side. The amount of cash the borrower must pay and the amount due to the seller are listed at the bottom of the front page.

Importance of a uniform settlement statement

All parties participating in reverse mortgage and mortgage refinance transactions are handed the HUD-1 form, which lists all closing fees.
Since late 2015, a new form called the Closing Disclosure has been developed for all other real estate transaction parties.
Both must be verified by the borrower prior to the closing to avoid any surprises or inaccuracies.


If you have any other questions regarding HUD-1 contact the mortgage experts at 864-397-8500 or click Mortgage Rates Today!

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