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#2091269 - 08/03/16 03:13 PM Closing date delayed - new CloD required?
Darth HMDA, CRCM, CAMS Offline
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Darth HMDA, CRCM, CAMS
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I have a question regarding the closing date and disbursement date on the closing disclosure.

We would like to get some clarification on the proper course of action when a loan is not consummated on the estimated closing date. If our CD is issued to the borrower with an estimated (or agreed upon) closing date and for some reason the closing is delayed and therefore the disbursement date is delayed, are we required to issue a CD with a correct closing/disbursement date the actual day of closing which shows the new consummation date?

For instance, consummation is scheduled for a Monday. The borrower cannot come in for some reason and has to reschedule for Tuesday. Are we required to issue a new CD Tuesday showing Tuesday's date?

Our institution does not actually schedule or host the signing, consummation is scheduled and held at the title company or via mobile notary. With this in mind, our institution often does not know when the borrower has rescheduled for the next day or had some other delay for whatever reason. When this happens, we do not find out when the actual consummation occurs until after the fact.
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TRID - TILA/RESPA Integrated Disclosures Rule
#2091289 - 08/03/16 03:27 PM Re: Closing date delayed - new CloD required? Darth HMDA, CRCM, CAMS
RR Joker Offline
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Yes, you would need to re-issue with correct information once you know what it is.
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#2091290 - 08/03/16 03:27 PM Re: Closing date delayed - new CloD required? Darth HMDA, CRCM, CAMS
rlcarey Offline
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rlcarey
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Galveston, TX
are we required to issue a CD with a correct closing/disbursement date the actual day of closing which shows the new consummation date?


Yes
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#2091313 - 08/03/16 04:00 PM Re: Closing date delayed - new CloD required? Darth HMDA, CRCM, CAMS
Darth HMDA, CRCM, CAMS Offline
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Darth HMDA, CRCM, CAMS
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Thank you Randy and Joker for responding.

We may not know until we gets the docs in. We have a lot of closings with the settlement agent who uses mobile notaries. We assume they'll close one day, and they sign the next morning. We get docs back and by that time it's too late. We of course issue a corrected CD post-consummation.

I understand that under 1026.19(f)(2) it must be provided at consummation but it is nearly impossible in some instances. We contacted our main settlement agent and she said that not a single bank they service (from the big boys to the one branch banks) reissues a new CD at the day of closing.

Not sure what to do. Don't mean to argue.. it just seems that there is a massive difference between the reg and industry practice.

Any advice? not using this settlement agent is not an option. Stuck between a rock and a hard place.
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#2091338 - 08/03/16 04:45 PM Re: Closing date delayed - new CloD required? Darth HMDA, CRCM, CAMS
RR Joker Offline
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Playing devil's advocate here.

What if you have ROR involved and they don't close on the closing date?
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#2091346 - 08/03/16 05:05 PM Re: Closing date delayed - new CloD required? Darth HMDA, CRCM, CAMS
LostinRegLand Offline
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Joined: Jun 2014
Posts: 82
WA
I am going to tag on to this and ask a slightly different question. What if they close on the planned date but for what ever reason they do not disburse on the date listed. Will an updated CLoD be required? 1026.19(f)(2)(iii) indicates "and such inaccuracy results in a change to an amount actually paid by the consumer" Since no fees changed just the disbursement date by 1 day would it need to be reissued? That is the part I am struggling with.

1026.38
Disbursement date.
The date the amounts disclosed pursuant to paragraphs (j)(3)(iii) and (k)(3)(iii) of this section are expected to be paid in a purchase transaction under § 1026.37(a)(9)(i) to the consumer and seller, respectively, as applicable, or the date the amounts disclosed pursuant to paragraphs (j)(2)(iii) or (t)(5)(vii)(B) of this section are expected to be paid to the consumer or a third party in a transaction that is not a purchase transaction under § 1026.37(a)(9)(i), labeled “Disbursement Date.”


1026.19 (f)(2)(iii)
Changes due to events occurring after consummation.If during the 30-day period following consummation, an event in connection with the settlement of the transaction occurs that causes the disclosures required under paragraph (f)(1)(i) of this section to become inaccurate, and such inaccuracy results in a change to an amount actually paid by the consumer from that amount disclosed under paragraph (f)(1)(i) of this section, the creditor shall deliver or place in the mail corrected disclosures not later than 30 days after receiving information sufficient to establish that such event has occurred.

If I am missing a section that I should be referring to please help me get to the right section.

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#2091349 - 08/03/16 05:07 PM Re: Closing date delayed - new CloD required? Darth HMDA, CRCM, CAMS
RR Joker Offline
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I can't conceivably think of any legitimate reason a loan would physically close but not disburse until the next day, so I have no comment other than I'm befuddled by the question.
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#2091350 - 08/03/16 05:11 PM Re: Closing date delayed - new CloD required? Darth HMDA, CRCM, CAMS
LostinRegLand Offline
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Joined: Jun 2014
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WA
Yeah I can't fathom this either but it did happen so I need help deciding if they need to reissue or not. It seems silly to reissue for just one date but what seems silly to me doesn't mean it is right with the regulation.

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#2091368 - 08/03/16 05:45 PM Re: Closing date delayed - new CloD required? Darth HMDA, CRCM, CAMS
John Burnett Offline
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Cape Cod
One possibility is that the closing was finished later in the day and the deed and mortgage could not go to record until the next business day, so that the title company delayed disbursements until the next day. If there were no payoffs involved, there might be no dollar amount changes.

If there are no dollar amount changes, there would not be a need for a corrected CloD.
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#2091387 - 08/03/16 06:06 PM Re: Closing date delayed - new CloD required? Darth HMDA, CRCM, CAMS
LostinRegLand Offline
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WA
Thank you John.

From talking to the loan officer it was delayed in getting recorded which is what delayed the disbursement to the next morning. I was leaning towards not having a new one reissued but sometimes I think I understand what TRID wants just to realize I missed a tiny sentence somewhere that changes everything.

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#2091393 - 08/03/16 06:11 PM Re: Closing date delayed - new CloD required? Darth HMDA, CRCM, CAMS
John Burnett Offline
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Cape Cod
After all that back and forth on the question, I'll add that there's nothing that bars you from issuing a corrective Closing Disclosure with the adjusted disbursement date, and you might find that an investor might, in fact, require it.
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#2091394 - 08/03/16 06:12 PM Re: Closing date delayed - new CloD required? Darth HMDA, CRCM, CAMS
Darth HMDA, CRCM, CAMS Offline
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Joker - I have provided explicit instruction that if ROR is involved it must be a 100% accurate - but this takes a lot of man hours and manual tracking from the department.
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