What is the name of the standardized closing statement required by RESPA 1974?

The standardized closing statement required by RESPA (Real Estate Settlement Procedures Act) 1974 is known as the HUD-1 Settlement Statement. This document plays a critical role in the closing process of a real estate transaction, as it itemizes all of the final credits and debits for the buyer and seller. The HUD-1 is designed to provide transparency and ensure that both parties can understand the costs associated with the closing process, which includes various fees and charges related to the transaction.

The use of the HUD-1 Settlement Statement was mandated to protect consumers and promote fair and honest practices in real estate transactions. It requires detailed disclosure of all financial aspects of the closing, helping to demystify the process for buyers, sellers, and lenders.

While the Closing Disclosure Form is also an important document introduced by the Dodd-Frank Act in 2010 to replace the HUD-1 for most transactions, it does not pertain to the original requirement established by RESPA in 1974. Thus, it is vital to understand the historical context and evolution of real estate closing documentation to recognize why the HUD-1 remains significant even as practices have shifted over time.