Placed under the umbrella of the Consumer Financial Protection Bureau as part of the Dodd-Frank Act of 2010, the Real Estate Settlement Procedures Act (RESPA) requires loan settlement information to be prepared on a special form known as the

HUD-1 Settlement Statement (prior October 2015) and Closing Disclosure (after October 2015)

Explanation:

HUD-1 Settlement Statement is a standard government real estate form that was used to itemize all charges imposed on buyers and sellers for a real estate transaction. This was later changed to the Closing Disclosure, which is a five-page form that provides final details about the mortgage loan the buyer has selected. It includes the loan terms, projected monthly payments, and how much to be paid in fees and other costs to get a mortgage (closing costs). it’s one of the most important pieces of paperwork a buyer receives when purchasing a property. ,