Closing Disclosure

The full definition

The federal disclosure listing a residential borrower's loan terms, closing costs and cash to close. It is delivered at least three business days before the loan is consummated.

Also called: CD, TRID disclosure.

Which related terms should you know?

These are the terms that come up alongside closing disclosure in the same file.

Closing statement

The itemized accounting of every credit, debit and disbursement at a closing. Commercial deals use a HUD-1 or ALTA settlement statement; consumer mortgage closings pair it with the Closing Disclosure.

RESPA

The federal statute regulating residential settlement disclosure and prohibiting kickbacks or unearned fees for referring settlement service business.

Mortgage recording tax

The New York tax due when a mortgage is recorded, computed on the new money secured. On a building with six or fewer apartments the lender pays 0.25 points of the combined rate and may not pass it to the borrower, so a buyer there budgets 1.8 or 1.925 percent rather than the full rate. A CEMA is the standard structure used to reduce the taxable amount.

Premium (title insurance)

The one-time charge for a title policy, computed from the filed New York rate schedule by amount of insurance, plus any endorsement and search-related charges.

Title insurance

Insurance against loss from title defects that existed before the policy date. New York premiums come from a filed rate schedule, so the figure is calculated rather than negotiated.

What else should you read before closing?