What forms were integrated to create the Closing Disclosure?

The Closing Disclosure was specifically designed to integrate the HUD-1 Settlement Statement and the final Truth in Lending (TIL) disclosure into a single document. This consolidation was part of the Consumer Financial Protection Bureau's (CFPB) effort under the TILA-RESPA Integrated Disclosure (TRID) rule, which was implemented to simplify the closing process for consumers. The purpose of the Closing Disclosure is to provide borrowers with clear and concise information regarding their mortgage, including loan terms, projected monthly payments, and closing costs, in an easy-to-understand format.

By combining these two key documents, the Closing Disclosure aims to enhance transparency and help borrowers better understand the true costs associated with their mortgage. This integration ensures that critical financial information is presented cohesively, supporting informed decision-making for homebuyers.

The other options presented do not accurately reflect the origin of the Closing Disclosure. The integration of unrelated forms or documents would not fulfill the purpose of clarity and transparency that the Closing Disclosure is meant to provide.