Escrow & Title
What is a 'closing statement' (HUD-1 or Settlement Statement) and how has it evolved in Illinois?
AA statement of the seller's reasons for accepting the offer
BA document detailing all financial aspects of a real estate closing; the HUD-1 was replaced by the Closing Disclosure (CD) for most transactions under TRID (2015)✓ Correct
CA statement required by IDFPR summarizing all disclosures made during the transaction
DAn income statement showing the brokerage's revenue from the transaction
Explanation
The HUD-1 Settlement Statement was the standard closing document for federally related mortgage transactions showing all debits and credits for buyer and seller. In 2015, the TRID rules replaced the HUD-1 with the Closing Disclosure (CD) for most mortgage transactions. The HUD-1 is still used for reverse mortgages and some all-cash transactions. Illinois agents and consumers should understand both forms depending on the transaction type.
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