For liability reasons, the bank prepares all of its own Loan Estimates and Closing Disclosures (as opposed to allowing a third party to prepare them). Regarding purchase transactions, if we elect to allow the settlement agent to prepare the seller's disclosure and deliver it to the seller, who is liable for any errors that may be contained in that disclosure; the bank or the settlement agent?

Also, regarding the seller's disclosure, there's no advance delivery period required, correct? In other words, that disclosure can be provided to the seller on the day of the real estate closing, right?

Thank you for your assistance!

The bank is responsible for any errors.

And yes, the seller can receive on the day of closing.

Don't forget you need a copy of the seller's statement for your files to fulfill the retention requirement.

May I add on to this topic?

Is anyone experiencing title companies doing their own CloD and delivering at close? My FI prepares the CloD but when a closing package comes back, there are multiple CloD's that the title companies have prepared and delivered both the borrower and seller (signed).

I have asked numerous times, and put a notice on our closing packages that the FI prepares and delivers the ClOD. But it is going neglected.

Do I need to chase all of these title companies down? I review them and the #s are not off, but it scares me if one (or more) is missed...

What is everyone else experiencing?

I'm seeing ALTA statements in files that close at title companies but no duplicate CloDs.
You're right that the title company works for you and shouldn't be ignoring your request and notices. Tell them to stop or you'll take your business elsewhere. Don't talk to a closer. Talk to the manager or attorney who runs the title company.
Keep in mind that a number of the title companies are stuck in the 'we've always done it this way' when it comes to preparing the closing statement. Telling them they no longer have to do it nor do you want them to may take a few closings to adjust to. But if you stand firm, they'll have to comply.

Cheli,

Wells Fargo was having the same issue as you:

http://www.tlta.com/documents/12_17_15%2...mpaign=86886221

Thanks for sharing that, Compl101TX.
Misery loves company.

The Wells newsletter is well done and points up a number of items that concern lenders struggling to deal with settlement agents. Some of the newsletter won't be relevant to you as a lender, but there is a lot of meat in there that you can use to inform your communications with settlement agents.

The difference, of course, is the Wells is a HUGE player that can enforce its policies -- using a "my way or the highway" approach (although I have to say that the newsletter is definitely not confrontational). Your shop may not have that kind of clout.

Thank you Tracey and Royale. Regarding my question about who is legally responsible for errors, 1026.19(f)(4) seems to indicate that the Settlement Agent is responsible for the Seller's CLod, and a creditor has no choice in the matter. We (the bank) would make sure that our borrower's CLod is completely accurate (including the section pertaining to the seller's side of the transaction) and understand that we are responsible for that; but if we tell our third party settlement agents that they must prepare a separate Seller's CLod (instead of handing out our borrower's CLod to the seller), wouldn't they be liable for any errors contained on the separate seller's CLod?

If not, could you please point me to the appropriate citation suggesting that the creditor is legally responsible for the accuracy of anything other than our BORROWER's LE and CLod?

Thank you so much! I appreciate your help.

Truffle, yes, I confirmed it is an Alta statement...I just can't seem to be OK with this...It's as if they do not trust the FI...but the FI is responsible for this form...

I don't agree that you're responsible for the ALTA form, Cheli.
The ALTA statement should be given IN ADDITION to the Seller part of the CloD.
Are you saying that you are delegating the responsibility of providing the Seller CloD to the title company and they are instead using the ALTA form? I'd nip that in the bud immediately! They need to be providing the Seller Clod which is the last two pages here. Either that or you need to be getting all the numbers from them and preparing both sides of the CloD and making them use it.

MY FI is obtaining all of the #s from the title companies and realtors, and creating the buyer and seller's CloD...my FI creates both...My manager was blown away when she came back from her first closing and saw what I guess is called an ALTA. But we don't know how to stop it.

Where I feel responsible with the ALTA, is if privacy is not protected. (MY FI separates the buyer/seller CloD)...

Let me expand...I may cause confusion...the title agencies are separating the buyer/seller ALTA's too...but who is given what copies?

The bank is responsible for the TRID disclosures. Whatever the title company is required to give to them is not the bank's issue. In Texas for example, the title companies have a T-64 disclosure that is required to disclose the actual owner's title insurance costs due to the simultaneous discount issue. It really is none of the bank's business whether that disclosure is correct or not.

The FI is not responsible for the ALTA. Title companies are required to do bookkeeping of funds changing hands and being disbursed and to obtain permission to disburse. Hence the ALTA. It is not a bank form, not your issue, not a CloD.
The CloD must still be given. Two different forms.

Thank you everyone, for the help and clarification...

We require the ALTA Settlement Statement from the title companies! They pretty much have complete free range on how they prepare it (borrower only/seller only or combined), but the amounts and Paid To must match our CD and it must balance. We require a fully executed ALTA signed by the borrower, seller, and settlement agent, whether that's on different forms or not. It is simply their way of balancing and disbursing the funds.

Now that the ALTA question has been sorted out :-), would someone be able to assist me with my earlier question about the Seller CLoD and who is legally responsible for its accuracy, timely delivery, etc. when the settlement agent is NOT the bank, but a third party?

1026.19(f)(4)(i) suggests that the burden is with the settlement agent, which is contrary to the opinion voiced by Tracey near the top of the post. THANK YOU!

The settlement agent, if there is one, has that burden. including providing a copy of the seller disclosure to the creditor. The creditor is charged with the retention requirements for that copy (and the rest of the file).

Of course, if no settlement agent is used, the creditor is responsible, regardless of whether the seller gets a copy of the borrower's disclosure or gets a separate disclosure using the special format permitted by the regulation.

Note that timely delivery to the seller is delivery at the closing.

In the case where separate CD are done; one for the buyer and one for the seller; the buyer doesn't have to see the seller's CD, do they? I know the creditor has to get a copy but I'm not seeing where the buyer has to see the seller's 1/2.

You're correct. The buyer doesn't get a copy or a look at the seller's disclosure. Note, though, that there is very little on the seller form that isn't also on the buyer's disclosure (the only parts left out are the seller's side of the summary of buyers/sellers transaction on page 3).