Every residential loan closing has a HUD-1 in the closing paperwork. The HUD-1 shows very specifically and to the penny, exactly what a buyer is paying to close on a property. It also shows exactly who receives each item and it shows what the seller is receiving from the proceeds of the mortgage and buyers funds.

It's important to look carefully at the HUD to make sure you are very clear as to who is getting what out of the closing.

With all the talk of reforming the mortgage industry, I am attempting to make a change to how closing costs are disclosed to mortgage borrowers. It is my opinion that good faith estimates of closing costs should mirror the HUD-1. Not only mirror, but I feel that mortgage loan officers and brokers should send out estimated HUD-1's rather than good faith estimates. It would be so much easier for borrowers to verify if there were changes from the time of application to the closing. As it is, most good faith estimates look nothing like the Hud-1. That just doesn't make sense to me.

Please let me know what you think about this. If I get a good response, it will help me start a petition.

Your HUD-1 is quite simply the settlement statement you receive at closing that outlines all of the fees and charges associated with your loan.

Unlike the (GFE) Good Faith Estimate you receive at the beginning of the loan process, the HUD-1 will show you exactly what the loan costs, how much you may have to bring to closing or how much cash you may be receiving if it's a refinance. Any and all charges must be listed on the HUD-1, regardless of whether or not they were (POC) paid outside of closing.