Signing One Form for All Disclosures
Answer by David Dickinson and John Burnett, BOL Gurus
Question: For the upfront lending disclosures (e.g., Servicing Transfer Disclosure, ARM disclosures, etc.) for which the Bank is required to keep a customer-signed acknowledgement of receipt, can the Bank substitute a "Disclosure Acknowledgement" form which the customer signs acknowledging receipt of all the disclosures? Or do the regulations require that the disclosures be individually signed?
First let's look at the requirement of the Servicing Disclosure in 24 CFR §3500.21(b)(2):
The Applicant’s Acknowledgment portion of the Servicing Disclosure Statement in the format stated is mandatory.
Since it must be in the format stated, you cannot use a different form to satisfy this requirement.
I am not aware of a signature requirement for the ARM Program Disclosure or any other early disclosure
And, of course, the Servicing Disclosure Statement is one that the RESPA law no longer requires, but our friends at HUD just haven't gotten around to eliminating from their "Regulation X." Yet they can cause the industry countless thousands (dare I say millions?) of dollars to comment on a misguided attempt to rewrite the regulation in ways that are, at best, dubious, and at worst, downright illegal.
Oh, did I forget to issue a rant warning? Sorry 'bout that!
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