The Department of Housing and Urban Development (HUD) 1 Settlement Statement is a standard form in the US that was once used to itemize services and fees charged by a broker or a lender to a person borrowing money to purchase or refinance real estate. The HUD 1 is typically filled out by a settlement agent and can be inspected by the borrower 1 day before settlement.
In 2010, the HUD 1 Settlement Statement was revised to contain the Good Faith Estimate (GFE) that incorporated an additional set of estimated settlement figures specified by the lender upon the loan application. Since then, borrowers can compare their HUD 1 Settlement Statements against their GFEs. If there are any changes, they could ask their lenders or brokers about them.
However, the HUD 1 was made obsolete on October 3, 2015 as part of the new regulations created by the Consumer Financial Protection Bureau. Specifically, it has been replaced by the Closing Disclosure, which is a document consolidating the HUD 1 and GFE disclosures.
While the HUD 1 is typically no longer in use today, there is still one exception—it is still used for reverse mortgages. Generally, these mortgages have been very popular among sellers aged 62 and above who are looking to pull equity out of their properties.