Which statement about the HUD-1 statement is NOT true?

The statement regarding the final Good Faith Estimate (GFE) and the HUD-1 statement reveals an important aspect of the closing process in real estate transactions. Specifically, the GFE is intended to provide borrowers with an estimate of the loan costs, while the HUD-1 statement presents the final accounting of these costs at closing.

While it is true that the costs outlined in the final GFE can differ from those listed on the HUD-1 statement, it is essential to note that the GFE was replaced by the Loan Estimate (LE) form for most transactions after the implementation of the TILA-RESPA Integrated Disclosure (TRID) rule in 2015. Thus when considering documents that are currently utilized and processed together, it is more accurate to highlight that the final LE and the HUD-1 (or Closing Disclosure in current practice) may show variances in costs due to factors such as changes in loan terms or borrower selections prior to closing.

In this context, some variations can arise from changes that occurred after the GFE was issued, such as adjustments for specific services that are paid at different points or based on the final agreement between the parties. Therefore, the statement implies that discrepancies in costs between documents are common and not surprising within the