[kmeade]

What should the date issued be on the Closing Disclosure (CD) at closing? Example: The CD is hand delivered to the borrower on 12/3/2018 (date issued showing 12/3/2018). The loan closing (with a seller involved) is scheduled for 12/07/2018. What date issued should be listed on the CD at closing 12/3/2018 or 12/07/2018?

Is there an issued if the date issued shows 12/03/2018 and seller is signing on 12/07/2018 and is seeing the disclosure for the first time on 12/7/2018 (or 12/06/2018 at the earliest)?

Topic

[rcooper]

38(a)(3)(i) Date issued.
1. Applicable date. For general guidance on identifying the date issued for the Closing Disclosure, see the commentary to § 1026.37(a)(4).

37(a)(4) Date issued.
1. Applicable date. Section 1026.37(a)(4) requires disclosure of the date the creditor mails or delivers the Loan Estimate to the consumer. The creditor’s method of delivery does not affect the date issued. For example, if the creditor hand delivers the Loan Estimate to the consumer on August 14, or if the creditor places the Loan Estimate in the mail on August 14, the date disclosed under § 1026.37(a)(4) is August 14.

2. Mortgage broker as loan originator. In transactions involving a mortgage broker, the date disclosed is the date the mortgage broker mails or delivers the Loan Estimate to the consumer, because pursuant to § 1026.19(e)(1)(ii), the mortgage broker is required to comply with all relevant requirements of § 1026.19(e).

If you have a change that requires a new disclosure then you would issue a new disclosure and put the new issuance date; otherwise the date would be as stated above. Document when the document is delivered to show compliance and you should be fine. You might also note “closing copy” on the disclosure provided at closing to indicate why the dates may not seem to comply. Either way, make sure your procedures clearly state your process and compliance with the delivery requirements are documented and you should be fine.

[kmeade]

We issue separate buyer/seller CDs. If there is no change to the CD and we leave the date issued as the date it was given to the borrower, 12/03/2018, the sellers CD also has a date issued of 12/03/2018, but they did not receive the disclosure until 12/07/2018. Is this a software issue or is this the way it should work? Could this be considered deceptive?
Also, we document the original date the CD is given to the borrower and how it was given (mail, in person, etc.) in the loan file.

[rcooper]

Oh, ok – I understand your question better now.

19(f)(4) Transactions involving a seller.
19(f)(4)(i) Provision to seller.
1. Requirement. Section 1026.19(f)(4)(i) provides that, in a closed-end consumer credit transaction secured by real property that involves a seller, other than a reverse mortgage subject to § 1026.33, the settlement agent shall provide the seller with the disclosures in § 1026.38 that relate to the seller’s transaction reflecting the actual terms of the seller’s transaction. The settlement agent complies with this provision by providing a copy of the Closing Disclosure provided to the consumer, if it also contains the information under § 1026.38 relating to the seller’s transaction, or alternatively providing the disclosures under § 1026.38(t)(5)(v) or (vi), as applicable.

Based on being able to provide a copy of what is provided to the consumer I think you should be fine and their signature at consummation would be sufficient to show compliance (again this would need to be spelled out in procedures). If a different disclosure is provided to the seller then you should be able to create a different issued date as this would not be a “copy”. You can talk to your forms provider to determine their system capabilities and various functions to make this work.

[Author]

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