New settlement forms now being used

Effective Oct 3, 2015 the former settlement statement referred to as HUD1 will no longer be used for real estate closings. The replacement form is call the ‘Master Settlement Statement’. This is a simple one page document that shows all of the numbers related to the sale of real estate. Below is an example of what to expect at your closing. If the buyer gets a new mortgage loan, the loan charges will also appear on this form.

This all comes about because of the financial meltdown.  Dodd-Frank Wall Street Reform and Consumer Protection Act made new rules that the U.S. Consumer Financial Protection Bureau now requires. In addition to the new settlement statement, buyers will receive new/additional disclosure forms from their mortgage company. All of these changes simplify the home sale process.