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48

© Ticor Title Company

THE NEW CLOSING DISCLOSURE EXPLAINED

A look at the different sections of the Closing Disclosure and explanations of each page.

The new form is 5 pages long

New form replaces the TILA and HUD-1

One Closing Disclosure is required for each loan

Charge descriptions on both the Loan Estimate

and Closing Disclosure must match.

Closing Disclosure at-a-glance

The Closing Disclosure replaces the Truth-in-Lending Act

(TILA) disclosure and the HUD-1 Settlement Statement.

Under the final rule, the creditor is responsible for delivering

the Closing Disclosure to the consumer, but creditors may use

settlement agents to provide the Closing Disclosure, provided

they comply with the final rule.

There is still a requirement for one Closing Disclosure

for each loan and charge descriptions used on the

Loan Estimate must be substantially similar to the

descriptions used on the Closing Disclosure. This is

so a consumer may easily identify a change in costs or

terms by a comparison of the two forms.