Understand the Oct. 3 Changes to HUD-1, Closing Process

The days of filling out the HUD-1 settlement form and getting a Good Faith Estimate (GFE) from the lender are winding down. On August 1, those two forms are going away. The Truth in Lending Act (TILA) disclosure form is going away, too. Replacing them are two new forms: the Closing Disclosure and the Loan Estimate. You can familiarize yourself with these new forms on the website of the Consumer Financial Protection Bureau (CFPB), which has taken over administration of the Real Estate Settlement Procedures Act (RESPA) from HUD. Just go to and type in the name of the forms in the search box.

There are also new rules for the closing procedure. One rule requires all forms to be ready three days prior to closing. NAR is recommending you actually get everything ready seven days prior to closing, so when you go into the three-day period, you don’t have to make any changes. Because making changes as the clock winds down comes with a cumbersome  set of hurdles.


What this means is, you and the other settlement service providers, including the lender and title agent, are under the gun to get everything squared away earlier than you have to today. And the buyers and sellers have to be cooperative as well, because if last-minute changes are made, a new three-day waiting period kicks in, at least in some cases.

The good news is, you have until October 3 to get familiar with the new forms and learn about the new closing procedures, and NAR is hosting a series of webinars on the topic. To learn when the next one is, go to


The video above, with Ken Trepeta of NAR Government Affairs, provides a concise overview of what to expect and also shares some tips on how to decrease the likelihood of snags in this new environment.

The CFPB’s goal in making these changes is to increase transparency for consumers. Start your education process by accessing the 5-minute video.

Robert Freedman

Robert Freedman is director of multimedia communications for the NATIONAL ASSOCIATION OF REALTORS®. He can be reached at

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  1. This is great information, and I appreciate you sharing this video. I will repost a link to it on my site for the benefit of my readers.

    Thanks again.

  2. Thanks!

  3. How is it in the buyer clients best interest to do the final walk through days prior to the seller being out of the property???

  4. Thank God… The problem I have is clouds on Title that are not searched or cleared before closing. This problem is the most frequent problem here. We always request Title search within 5 days of acceptance, but that doesn’t happen tell a week before closing. The problem we have in our community is we only have 2 title companies with one closer each. I hope this will cause them to hire more people to get things done on time. Thank you for the information very productive.

  5. Chuck

    Three day delay if changes are made is not good for closings. Often there are last minute changes that are beyond the control of any planning. A detailed list of exceptions should be clear and concise.

    However, the more restrictions you impose, the more problems and complaints will ensue. HUD was bad enough, but this appears to complicate matters more.

  6. Great informational video ! Thanks

  7. StephenF

    This should make the Back to Back closings just that much smoother huh…LOL

  8. Lenders will have this all figured out by Aug. its really not that big of a deal. Very few closings should get delayed because of the rules. Lenders shouldn’t be changing rates on customers the day of closing and they really don’t do that anymore anyways. With a few exceptions I don’t see this affecting many transactions in terms of timing. All and all its a good change for the industry and will make us stronger.

  9. I’m glad we’re overhauling some of the process. HUD-1′s haven’t dramatically changed in decades. They can be confusing for same people, more transparency is going to help in a big way.

    I do have some concerns with some of the variables here. Specifically, our inability to make changes as the time to closing winds down. We all know how fluid the process can be and I’m concerned that Buyers and Sellers will begrudgingly (or be forced to) accept defects in the transaction, in the effort to close on time. I don’t look forward to explaining the virtues of getting a deal “right” vs. closing on time. Both can have financial impacts and forcing that decision on the parties is not fair.

  10. Another sign of the government at work for us all – not really I agree with the 3 day, many years ago I believe the HUD1 was to be 3 days in advance. Just all the stuff about rate changes etc remind me of the old XYZ Mortgages where anyone was approved but maybe at 12% and day of closing went to 15% – needed this in 2005 to 2010.

  11. Thanks!

  12. Wyatt Bates

    Good information. I have a concern with REO sellers getting this information to buyers within the timeframes. They are notoriously slow in our area with putting closing packages together.

  13. C. J. Stapleton

    HUD1 were supposed to be ready 3 days prior to closing and I never saw that happen, at all. Lenders can barely get the loan package by the day of closing to the title co., how in the world will they be able to get closing docs prepared and sent out 3 days prior to a closing. I feel this may add several additional days to a closing, instead of maybe 30 days it could take up to 45 days or longer to close. Isn’t this like giving the thief a key. The mortgage industry was the downfall of the real estate industry, but they are now handed to ability add whatever they want to the settlement statement and send it out. Then its either close or leave the table. Can you imagine trying to contact the lender with questions or concerns? you can barely get them on the phone to ask when the loan approval is expected. Just go ahead and further damage the real estate business. The title companies have always been the independent party to a closing and now they will have no voice.

  14. Sheri

    I can see needing 60 day closing a instead of the 45 days I now write. I think this is a great thing, sellers will be comforted by a clear to close prior to actually vacating the property.

  15. I have been doing this for 31 years now. There are certain things in the world that are perfect and you should not mess with. The HUD One is one of those things.
    The mortgage process is another thing. I believe in systems and organization. It has worked for me and everyone I have worked with for 31 years. Why doesn’t someone ask Dan Gilbert if it works OK for him? If he says yes, leave it alone. The Government has failed at almost everything it has touched. The Government has no business messing with perfection. How is welfare system working? How is the border security system working, Immigration, Government Housing, Medicare, VA, Medicaid, AmTrack, Fannie & Freddie, Social Security, GSA, Obamacare, EPA?? How are all these Government Agencies working? Terrible and now they want to tell US what needs to work in OUR business. The Government broke our business when they allowed Fannie and Freddie to sell Subprime loans and now they are being trusted to fix something THAT IS NOT BROKEN. Government – Go to Hell Just leave us alone.

  16. Extending a contract an extra 15 days just means the lender can wait even longer to get the job done. Make the lender perform, instead of asking buyers and sellers to wait longer for a closing. Sellers need to know when to move out. It should not be a flexible date.

  17. Howard Kurtzberg

    These changes will make last minute closings a thing of the past, and coordinating closings will likely require more post closing occupancy agreements. As interest rates rise (what else can they do), Buyers will need to make sure their interest rate locks are long enough to cover the delays.

  18. This is good cause who’s like to rush… And just like a trip to catch a Flight ! There’s never enough time…..

  19. Thanks for the information. Glad to have such great people doing their best to keep us on our toes. I honestly don’t think this will affect us much. The new forms look great and I really don’t think it will slow closings down much.

  20. Dan

    Oh, my! The only person here who must close a lot of transactions is CJ Stapleton (looking at these comments) “the lenders will have this figured out” – PLEASE!!

    This is going to be crazy – lenders are ARE THE PROBLEM not the solution!

    They are horrible, causing delays constantly, not owning up t0 or being responsible for anything!

    The only thing I like is the secure (Web) uploading of info – then there will be an ultra clear trail of how the banks screed all this up!

  21. Hopefully the new changes will not require an additional 15 days to the scheduled closing time.

    As far as the walk-through is concerned. It usually needs to be done after the seller has completely moved out of the home. In cases where the home is occupied this generally does not happen until the day before closing if we are lucky.

    Thanks for the great information!

  22. Just wanted to say thanks for this great information. It pleases me to be able to have such awesome people such as yourselves doing what you can to keep us all informed. Mike

  23. Thank you for this great information and short informative video. For any agents in Dallas area, Investable Realty and Millennium title are sponsoring MCE classes to get up to speed ready for OCT 3 .

  24. Thank you !

  25. keith

    Another fine example of Washington FOULING things up and sticking their nose where it doesnt belong. I’m trying to buy a short sale and after 3 months finally got approval. Now I’m told we have have a minimum 45 day escrow. The house is vacant and previous owner is bankrupt. Today my bank,(lender) told me this new law complicates everything, is extremely paper work intensive and helps no one. The lenders dont like it, realtors dont like it,sellers dont like it and buyers dont like it. It’s especially bad for the seller and buyer. This has placed an unnecessary burden on everyone, but hey, that’s what Washington DC does best! We can only hope that someone with COMMON SENSE will be elected and reverse this garbage.

  26. Monica

    Change is always good, but this is Ridiculous !

  27. Tammy

    Being told that if the Mortgage Payoff changes from initial loan application redisclosure will be necessary…is this true? I am fighting saying no as mortgage payoff is not a fee…..please help

  28. I hope this will help. This should fix the problem that some title companies want to show the HUD 15 minutes before closing. As I told one company “It takes an act of congress to get you to do your job” I welcome the changes and if buyers and sellers have to wait a small amount of time to make sure everything is right, so be it! That is awesome, we need to focus on what is BEST for our clients. GOOD LUCK trying to CHANGE SOMETHING that did not GET PAID….. AFTER CLOSING!

  29. Jon Williams

    For everyone saying it shouldn’t take much longer, or delay the closing date. Yeah, that’s BS. Nobody can seem to figure out the new law, and has pushed my closing date another 2 weeks. I do big deals everyday with $400k trucks, when there is a date placed on the finished product, we are held to that date, or we eat the costs heavily. Weird how the real estate world can’t get their shit together

  30. Keith Southworth

    I agree 100% with Jon Williams comment. I’m trying to buy a house and there has been one delay after another. My loan officer says this has caused big problems and complications for everyone,but in the end, the buyers and sellers are the victims of the thing. My realtors hate it. I just spoke to the title company and the lady who has been doing this for 25 years said the government has really “SCREWED EVERYONE” with this. Her further comment was, but that’s what this government does best, is SCREW the people.

  31. Darren

    Please excuse me, I haven’t read up on these changes but couldn’t they potentially cause a buyer to lose out on their deposit if transactions get drawn out too long? Anyone have the answer?

  32. Carrie Traub

    With all my closings being delayed and everyone using TRID as an excuse, I decided to do my own research and what I found is very interesting. First, the lender cannot start the loan process until the buyer orally, electronically or wet gives an intent to proceed. Thats important because if a buyer drags their feet, the lender cannot start the process. Second, this is a biggie! PAY CLOSE ATTENTION… This is straight out of TRID:
    Changes before consummation requiring a new waiting period.
    1. The annual percentage rate disclosed under § 1026.38(o)(4) becomes inaccurate, as defined in § 1026.22.
    2. The loan product is changed, causing the information disclosed under § 1026.38(a)(5)(iii) to become inaccurate.
    3. A prepayment penalty is added, causing the statement regarding a prepayment penalty required under § 1026.38(b) to become inaccurate

    19(f)(2)(i) Changes before consummation not requiring a new waiting period.
    § 1026.19(f)(2)(i), if the disclosures provided under § 1026.19(f)(1)(i) become inaccurate before consummation, other than as provided under § 1026.19(f)(2)(ii), the creditor shall provide corrected disclosures reflecting any changed terms to the consumer so that the consumer receives the corrected disclosures at or before consummation.

    What does this mean, only apr, prepayment penalty additions and apr changes start the 3 day clock!
    All the other stuff, inspections, warranties, title insurance etc can be added, a new CD must be given at or on consummation(usually closing).
    Hope this helps
    Knowledge is power

  33. David Robertson

    I am not sure how this is helping the consumer? At the same time, HUD is maintaining a 45 days to close sales contract so it is next to impossible to get this done before the consumer is forced to pay an extension fee if you are buying a HUD home

  34. leon

    this is an example of gov not knowing what they are doing, i am trying to sell a house and this is slowing the closing