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Glossary of Notary Public, Mortgage, Signing Agent, and Loan Signing Terms.

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Settlement Statement

Phonetics: set-tle-ment

Function: noun

This document is prepared by the closing agent and discloses all fees and costs involved in the loan and is required by Federal Law. It includes the loan amount, loan fees, charges, proration of real estate taxes, and amounts due to and from the borrower(s). It is common for the appraisal fee(s) and credit report fees to have already been paid. Previously paid fees should be documented as paid by noting the initials, P.O.C. which stands for paid outside the closing.

Other documents with similar information to the Settlement Statement include the Good Faith Estimate which includes estimates of closing costs. The Closing Statement is another document that discusses closing costs. The Settlement Statement or HUD-1, as it is also called, is the most final and official of documents discussing closing costs.