fsbo
Closing Disclosure (CD)
The TRID-mandated form that outlines all final terms and costs of a federally regulated mortgage loan, given to the buyer at least three business days before closing.
In depth
The Closing Disclosure (CD), introduced by TRID in 2015, replaces the old HUD-1 for most consumer mortgage closings. It provides comprehensive cost details, loan terms, projected payments, and other regulated disclosures. The lender must deliver the CD at least three business days before closing. Misconception: the CD is not used for cash transactions; those typically use a settlement statement (often called an ALTA settlement statement). Practically, in seller-financed consumer mortgage closings, a CD may be required if a licensed loan originator is involved. Most pure seller-financing transactions, especially FSBO contract-for-deed deals, use a settlement statement instead. Buyers should review the CD against the loan estimate received earlier to confirm no surprise charges. Errors require redisclosure, possibly delaying closing.
Educational content only. Definitions reflect typical usage in US owner-finance and FSBO transactions; statutes and case law vary by state. Consult a licensed real-estate attorney for fact-specific guidance.