What is the new HUD form called?

The term "Closing Disclosure" refers to the new HUD form that was introduced as part of the changes to federal mortgage regulations under the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA). This form was designed to provide borrowers with a detailed breakdown of their closing costs, which increases transparency in the mortgage lending process.

The Closing Disclosure must be provided to the borrower at least three days prior to closing, allowing time for the buyer to review the information. This ensures that all costs associated with the mortgage, including interest rates, monthly payments, and total closing costs, are clearly outlined and easy to understand, making the home-buying process more straightforward.

Other options refer to forms that have either been replaced by the Closing Disclosure or are related to different aspects of real estate transactions. The Closing Statement and the Settlement Statement generally serve similar purposes to the Closing Disclosure but are not the current form mandated by HUD. The Loan Estimate, on the other hand, is provided earlier in the process to give borrowers an estimate of the costs they can expect at closing but is not the final document for that purpose.