Question

A borrower is entitled to request and obtain a copy of the HUD-1 Settlement Statement how many days before closing?

A) 3 days
B) 10 days
C) 30 days
D) 45 days

Answer 1

A borrower can request the HUD-1 Settlement Statement 24 hours before closing. This document, now largely replaced by the Closing Disclosure form, itemizes all charges for the borrower and seller in a transaction. None of the given options are correct.

Step-by-step explanation:

A borrower is entitled to request and obtain a copy of the HUD-1 Settlement Statement one day, or specifically 24 hours, before closing. The HUD-1 Settlement Statement itemizes all charges to be paid by the borrower and seller in a transaction.

It is no longer used for most mortgages because it has been replaced by the Closing Disclosure form, which must be provided to borrowers at least three business days before closing on the loan.

Nonetheless, understanding the readiness and right to review the settlement statement is important for those in real estate transactions that might still use the older form, such as reverse mortgages.

Hence, all options are incorrect.