We will prepare the Closing Disclosure, the Title Agent has prepared an ALTA Settlement Statement; does the Title Agent also need to prepare a Closing Disclosure modified for the seller (H-25(I))?

The seller's disclosure is the settlement agent's responsibility. It needs to be in a form provided by Reg Z. If the ALTA settlement statement meets that standard, an additional seller's disclosure isn't needed. But if it doesn't meet the standard, a separate seller's statement is required.

Is this stated word-for-word in the Reg? I have been reading over the Reg for a few hours now, and this Citation would solve at least a few questions/problems!

38(t)(5)(v) Separation of consumer and seller information. The creditor or settlement agent preparing the form may use form H-25 of appendix H to this part for the disclosure provided to both the consumer and the seller, with the following modifications to separate the information of the consumer and seller, as necessary:...............

Refer to the rest of this citation.

vi.Modified version of the form for a seller or third-party.
The information required by paragraphs (a)(2), (a)(4)(iii), (a)(5), (b) through (d), (f), and (g) with respect to costs paid by the consumer, (i), (j), (l) through (p), (q)(1), and (r) with respect to the creditor and mortgage broker, and (s) of this section may be deleted from the form provided to the seller or a third-party, as illustrated by form H-25(I) of appendix H to this part

So if the Title Company Settlement Statement does not have ALL items shown the H-25(I) form, then it does not comply with the requirement and the Seller is required to receive a separate Sellers Closing Disclosure that does have all items required?

I would opine that you have to use the Closing Disclosure form with the information reacted, not that you can just give them the information in another format. It says those sections may be deleted, not that a closing agent can design their own form to give them this information.

From the preamble: The Bureau is further revising comment 38-1 to clarify that disclosures not applicable may be left blank, but that “N/A” or “not applicable” may not be used and form H-25 may not be modified. Accordingly, disclosures may not be deleted from form H-25 unless otherwise provided under § 1026.38.

And what if the title company IS preparing a separate CD for the Seller. However, on the Borrower CD, we cannot remove some Seller information. Is this "over-disclosure" okay, as it will not be the true and accurate Seller CD and a separate one will be prepared?

You can't remove anything from the borrower's copy of the CloD when there is a seller. What is going to appear on the borrower's CloD that he shouldn't be able to see?

Nothing, but there will be items that will auto-populate to the Seller side of page 3 that we can't remove. But all of that is info that is already shown somewhere else on page 3 for the borrower.

On the other hand, there is certainly a strong argument for preparing a separate CloD for the seller, with the permitted borrower items omitted. That information is confidential, and your borrower will appreciate that it's not shared with the seller.