[Kristin]

Closing agents are informing us that they are not required to complete the seller CD as long as they complete the ALTA form that their title underwriter is requiring. Is this acceptable?

[rcooper]

I haven’t heard this and don’t believe Reg Z allows for use of a different form/format. I look to 1026.19(f)(4)(i) for the requirement to provide the CD to the seller. And then to 1026.38(t)(3) and its commentary for the format requirements and 1026.38(t)(5)(v)-(vi) for permitted variations for seller disclosures.

I tried searching for information from ALTA that might describe or support what your closing agent told you. During that search I found a blog article (https://blog.alta.org/mortgage-disclosures/) which states: “In transactions involving a seller, the settlement agent is required to provide the seller with the Closing Disclosure reflecting the actual terms of the seller’s transaction no later than the day of consummation.”

Has the closing agent provided you with information or citations that they are basing their interpretation on. If so, I’d be interested in hearing that so we can consider their interpretation further.

[Kristin]

We went back to the closing agent – it was a misunderstanding. They incorrectly interpreted what the title underwriter stated.

[Author]

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