Closing Disclosure (CD – formerly HUD-1)

The Closing Disclosure (CD – formerly the HUD-1 Uniform Settlement Statement) is a three-page, government-mandated form that details the costs associated with a real estate transaction. The borrower should receive a copy of the CD at least one day prior to the closing. Because the figures on the CD are the actual charges associated with the loan, it is important for all parties to examine the document and check for inaccuracies. As of 2010, settlement agents are required to include the figures from the Loan Estimate (LE – formerly Good-Faith Estimate). The inclusion of these figures enables borrowers to easily compare the charges that were initially quoted by the lender with the actual loan charges. Seeing the numbers side by side may highlight errors or wide variations so that they can be corrected before the closing.