Which document replaces the HUD-1 Settlement Statement and the final TIL Disclosure?

The Closing Disclosure serves as the document that replaces both the HUD-1 Settlement Statement and the final Truth in Lending (TIL) Disclosure. This change was implemented as part of the TILA-RESPA Integrated Disclosure (TRID) rule, which aimed to streamline the home buying process by combining these separate documents into one comprehensive disclosure.

The Closing Disclosure provides detailed information about the loan terms, projected monthly payments, and all closing costs associated with the mortgage transaction. Its design helps borrowers better understand their financial obligations before finalizing their mortgage, ensuring transparency and accuracy in the lending process. Additionally, the timing of the Closing Disclosure is crucial, as it must be provided to the borrower at least three business days prior to closing, allowing ample time for review.