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.

Related Illinois Escrow & Title Questions

Practice More Illinois Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Illinois Quiz →