[kvet18]

We have had at least 4 title companies that we use tell us that no other lender is requiring seller info on the borrower’s Closing Disclosure to be disclosed on the initial CD. They are stating that this info is left off the CD that is sent 3 days prior to closing, and added to the CD the day of closing.

My interpretation is that this is a violation. Am I missing something or has something changed? It is just interesting to me that we are the only bank working with these 4 companies (we only surveyed 4 companies) that are requiring this info for the initial disclosure.

[rcooper]

Closing costs and other costs on page 2 of the CD must be disclosed regardless of who pays them (see 1026.(f) and (g)). There are instructions in 1026.38(t)(5) that allows you to provide separate disclosures and with that you are permitted to omit the consumer paid items in (f) and (g) from the seller’s disclosures but you can’t omit the seller paid items from consumer’s disclosure. In addition, it permits you to omit some of the seller’s information from the consumer’s CD. I recommend you take a look at these sections and also the CFPB’s FAQ (April 12, Question 15) which addresses this question.

I hope this helps. Let us know if you have other questions. Thanks!

[Author]

Posts