What does Closing Disclosure replace HUD-1 for mortgage loans?

• A. The Closing Disclosure is the standardized loan closing document required by TRID; HUD-1 is no longer used for federally regulated loans.
• B. HUD-1 is still required for all loans.
• C. Closing Disclosure is optional for TRID loans.
• D. HUD-1 replaced by Closing Disclosure for all real estate transactions.

Answer: (A)

Under TRID, the Closing Disclosure is the standardized mortgage closing document used for most closed-end loans. It replaces the HUD-1 Settlement Statement for federally regulated loans, combining loan terms and final costs in one clear document that borrowers review and sign after receiving a final set of numbers at least three business days before closing. The HUD-1 was the older form used before TRID and isn’t used for these loans anymore, though a few non-TRID scenarios may still use different forms.