Deeds, Title & Closing

Closing Disclosure (CD)

The final, itemized accounting of all costs and credits in a TRID-covered residential mortgage closing.


Definition

The Closing Disclosure (CD) is the final settlement statement used in most consumer residential mortgage closings since TRID took effect in October 2015. It replaces the prior HUD-1. The CD details the loan terms, projected payments, all closing costs (loan costs and other costs), and the cash to close. Lenders must deliver the CD at least 3 business days before consummation. If certain changes occur after delivery (APR increase > 1/8%, loan product change, prepayment penalty added), a new CD must be issued and the 3-day waiting period restarts.

Exam Tip

Final closing accounting. Must arrive 3 BUSINESS days before closing. Major changes restart the 3-day clock and delay closing.

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