We were told by our vendor that the signature line for the CD will either have to be on all CDs or not on any of them. To cause less confusion for the borrower when mailing out the disclosure, we would like to turn off the signature line. Then if we have a situation where the CD is provided in person, an exhibit would be added to the CD that would indicate that they received the disclosure on xx date and have it signed to evidence the timing requirement.

Does anyone see any concerns/issues with this process?

To the extent that such consumers names do not fit on the space allocated for a signature on form H-24, comment 37(n)-2 provides
that an additional page may be added to the Closing Disclosure.

That appears to be the only allowed addition of a page when it comes to signatures.

Why would the applicants be confused when receiving something in the mail??

The response that I received was that the consumer would think the CD would need to be signed and mailed back even if we have a cover letter letting them know that the disclosure does not need to be signed and returned.

If you don't want it signed all the time, don't use signature lines. That will cause an audit nightmare.

Not sure why you want to treat in person differently if they receive same cover letter, etc., but you could have an acknowledgement but it cannot be part of the closing disclosure

The only time we would like to gather the applicant’s signature is when we deliver the disclosures in person – to evidence the date of borrower receipt. Our vendor requires that our docs either include signatures for all loans, or not. We cannot for one loan require a signature line and not for others. If we choose to exclude the signature line for all loans, how can we document the borrower’s receipt of the disclosure? It seems as though a separate addendum is not permitted, so our only option is to put the signature line on all loans.

You have an option -- a separate sheet, not part of the disclosure, on which the consumer acknowledges, with date, the receipt of the closing disclosure.

So we are all telling you the same thing. A separate acknowledgement form; it cannot be part of the closing disclosure.

Even if you craft a totally separate form, you better still have the tag line “You do not have to accept this loan because you have received this form or signed a loan application.”

This is exactly what we're doing. On all Closing Disclosures, we're not providing the signature line. In cases where the Closing Disclosure is provided in person, we will have the customer sign a receipt acknowledgement form, separate from the Closing Disclosure.

In cases where we provide a revised Closing Disclosure, that doesn't trigger a new 3 day waiting period, we'll provide the revised CD at loan closing, and have the customer sign the receipt acknowledgement at that time.

Call me a nervous Nilly, but I struggle with the idea of a separate acknowledgement because the CFPB intentionally contemplated signatures to confirm receipt and designed the form around it by requiring that the signature line be located under a "Confirm Receipt" heading and include the "no obligation" statement before the signature line. Additional pages appear to be permitted only for the colelction of additional signatures.

Because the preamble, reg and commentary all speak to a particular method for collecting signatures to confirm receipt, I'm worried that an examiner may find a separate confirmation document used to collect all signatures a variance from the model form requirements which are mandated for federally related mortgage loans.

Has anyone looked into what will be required on the secondary market? I am thinking they are requiring signatures on the CD.

I am checking on this. Our retail loans are portfolio'd and current process is not to collect signatures -- we rely on documentation of delivery and assumed receipt. However our residential real estate department does need to consider secondary market requirements. So far, it's been really quiet with not much coming from investors. I expect that will change in the next couple of weeks as we near the deadline. I will let you know what I hear.

Have you heard anything from investors yet, compconsult1?

Freddie Mac:

From Bulletin 2015-10
COLLECTION OF SIGNATURES
The CFPB provides lenders with the discretion to determine whether they will require Borrowers to sign the new Loan Estimate or Closing Disclosure forms, and limits the purposes for which those signatures may be obtained. The CFPB also has provided a framework for collecting additional forms, such as customary attestations, which may accompany the Closing Disclosure, provided that certain requirements are met.

Freddie Mac will not require signed Settlement/Closing Disclosure Statements or additional forms on and after the TRID Rule Effective Date. However, Seller/Servicers may wish to consider collecting (or continuing to collect) signatures and/or forms given their potential evidentiary value, consistent with current widespread industry practices.

As of today, VA has confirmed that nothing has been put out on their requirements for signatures.

Still waiting on a response from FHA, although I am not finding anything official.

Then we will decide our internal requirements.