Settlement Statement (HUD-1)

In depth

The HUD-1 settlement statement was the universal closing form before TRID introduced the Closing Disclosure for consumer mortgages in 2015. The HUD-1, or its modern equivalent (the ALTA Settlement Statement), still applies to cash transactions, commercial deals, reverse mortgages, and many seller-financed transactions. It itemizes credits and debits to buyer and seller, including purchase price, loan amounts, prorations, escrow deposits, title charges, and recording fees. Misconception: the HUD-1 is not obsolete; it remains the standard for non-TRID transactions. Practically, FSBO sellers using owner financing typically rely on a settlement statement prepared by the title company or attorney, since TRID does not apply. Both parties should review the statement carefully before closing to catch errors in math, prorations, and credits.