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#2094835 - 08/23/16 07:22 PM Sellers Closing Disclosure
JWills, CRCM Offline
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JWills, CRCM
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The Mitten State
I have a sellers closing disclosure that was prepared by the settlement agent, it is missing the date issued, the address of the seller, and a portion of the contact information section. Am I incorrect in thinking that this information must be completed?
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TRID - TILA/RESPA Integrated Disclosures Rule
#2094889 - 08/23/16 11:59 PM Re: Sellers Closing Disclosure JWills, CRCM
rlcarey Offline
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Not your problem - see 1026.19(f)(4)(ii) and commentary.
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#2094928 - 08/24/16 01:38 PM Re: Sellers Closing Disclosure JWills, CRCM
John Burnett Offline
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You'd be smart to avoid using this settlement agent again unless it gets its act together.
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#2094979 - 08/24/16 04:17 PM Re: Sellers Closing Disclosure rlcarey
JWills, CRCM Offline
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So Randy you are saying that it does not matter if these are left blank?
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#2096183 - 08/30/16 08:44 PM Re: Sellers Closing Disclosure JWills, CRCM
Carter'sMom Offline
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I was researching this Topic as well. I can find in the reg that the closing company is responsible for preparing and delivering the Seller's CD and correcting it if it is inaccurate. However, does the bank have any obligation to ensure the Seller's closing disclosure is accurate?

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#2096185 - 08/30/16 08:48 PM Re: Sellers Closing Disclosure JWills, CRCM
rlcarey Offline
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The title company has a violation not the Bank. I would point it out to them and if they don't clean up their act, I would probably put them on my "we don't do business with these title companies" list just to show the regulators that you are paying attention and probably file a compliant with your State's version of the Department of Insurance.
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#2100177 - 09/23/16 07:07 PM Re: Sellers Closing Disclosure JWills, CRCM
AnotherDayinParadise Offline
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I didn't see this specifically addressed in the proposed rule (maybe I missed it as I did skim it), but I feel it is gray whether or not the lender will be held responsible for TRID errors the title companies make. Examiners may not criticize the seller's CD for a missing piece of the contact information; however, I could see the examiners having a problem with the bottom line on the seller's CD not matching the bottom line on the buyer's CD, which could have resulted from discrepancies in the fees being charged on both CDs. I'm not sure I'm convinced that Lenders won't be held responsible for all TRID errors when the regulation does say it is ultimately the Lender's responsibility to communicate with the title company and both must follow TRID requirements, but as we all know, no regulatory agency is holding title companies accountable, but banks are definitely held accountable for errors.

Has anyone had an examiner comment either way on this topic yet?

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#2100181 - 09/23/16 07:19 PM Re: Sellers Closing Disclosure JWills, CRCM
Darth HMDA, CRCM, CAMS Offline
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Haven't had an examiner comment on it. I think challenges with settlement agents are an industry-wide problem.

That being said the reg is clear that it is the settlement agent's responsibility (although IMO if you see blatant errors you should bring it to their attention and document as a best practice)

§1026.19(f)(4)(ii) (as Randy provided above)

ii. Timing.
The settlement agent shall provide the disclosures required under paragraph (f)(4)(i) of this section no later than the day of consummation. If during the 30-day period following consummation, an event in connection with the settlement of the transaction occurs that causes disclosures required under paragraph (f)(4)(i) of this section to become inaccurate, and such inaccuracy results in a change to the amount actually paid by the seller from that amount disclosed under paragraph (f)(4)(i) of this section, the settlement agent 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.
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#2100182 - 09/23/16 07:19 PM Re: Sellers Closing Disclosure JWills, CRCM
Darth HMDA, CRCM, CAMS Offline
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Interpretation:

1.Requirement.
Section 1026.19(f)(4)(ii) provides that the settlement agent shall provide the disclosures required under § 1026.19(f)(4)(i) no later than the day of consummation. If during the 30-day period following consummation, an event in connection with the settlement of the transaction occurs that causes such disclosures to become inaccurate and such inaccuracy results in a change to the amount actually paid by the seller from that amount disclosed under § 1026.19(f)(4)(i), the settlement agent 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. Section 1026.19(f)(4)(i) requires disclosure of the items that relate to the seller’s transaction. Thus, the settlement agent need only redisclose if an item related to the seller’s transaction becomes inaccurate and such inaccuracy results in a change to the amount actually paid by the seller. For example, assume a transaction where the seller pays the transfer tax, the consummation occurs on Monday, and the security instrument is recorded on Tuesday, the day after consummation. If the settlement agent receives information on Tuesday sufficient to establish that transfer taxes owed to the State differ from those disclosed pursuant to § 1026.19(f)(4)(i), the settlement agent complies with § 1026.19(f)(4)(ii) by revising the disclosures accordingly and delivering or placing them in the mail not later than 30 days after Tuesday. See comment 19(e)(4)(i)–1 for guidance on when sufficient information has been received to establish an event has occurred. See also comment 19(f)(2)(iii)–1.iii for another example in which corrected disclosures must be provided to the seller.
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#2100198 - 09/23/16 08:01 PM Re: Sellers Closing Disclosure JWills, CRCM
rlcarey Offline
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While the requirements do fall on the settlement agent, settlement agents approved for use by the bank should go through a due diligence process. Consistent errors on closing disclosure would remove them from the list of acceptable closing agents.

19(e)(1)(vi) Shopping for settlement service providers.

1. Permission to shop. Section 1026.19(e)(1)(vi)(A) permits creditors to impose reasonable requirements regarding the qualifications of the provider.
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#2100546 - 09/27/16 03:58 PM Re: Sellers Closing Disclosure JWills, CRCM
AnotherDayinParadise Offline
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I agree, Randy. I suggested that we not work with title companies who aren't following the TRID requirements, and I got a "we can't do that" from the loan department. Working with the title companies has always been and likely will continue to be an uphill battle until they are regulated and held responsible.

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#2100602 - 09/27/16 06:08 PM Re: Sellers Closing Disclosure JWills, CRCM
Darth HMDA, CRCM, CAMS Offline
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I got the same response - we also have some rural areas where that title company be the title company. Also - we may not want to do business with a settlement agent but they are already selected on the purchase contract and if we want the loan we will work with them.

Not my call BTW..

In any case, I think it's improved since last October but it's still definitely not perfect...
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#2100619 - 09/27/16 06:49 PM Re: Sellers Closing Disclosure JWills, CRCM
Dan Persfull Offline
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A well worded letter to the Dept. of Ins., which governs title companies in most states, with a CC to the CFPB and the title company documenting their errors and their uncooperativeness to correct can go a long way in bringing them to their senses.

I got a "we can't do that" from the loan department.

No, "they don't want to do that".
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#2100624 - 09/27/16 06:59 PM Re: Sellers Closing Disclosure JWills, CRCM
AnotherDayinParadise Offline
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Great suggestion, Dan:) You're 100% correct!

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#2101803 - 10/05/16 02:29 PM Re: Sellers Closing Disclosure JWills, CRCM
mcovey Offline
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We have a title company that mostly sends us a seller closing disclosure but recently sent only an ALTA settlement statement. Sometimes they are signed and sometimes not. Should we be requesting copies of both documents for each transaction? For a while now we were only asking for the seller side CD.

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#2101808 - 10/05/16 02:40 PM Re: Sellers Closing Disclosure JWills, CRCM
raitchjay Offline
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My take on it has been if they want to send an ALTA statement, that's fine, but we REQUIRE (because the regulation requires) a seller's CD.
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#2101815 - 10/05/16 02:50 PM Re: Sellers Closing Disclosure JWills, CRCM
rlcarey Offline
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1026.19(f)(4)(iv) Creditor's copy. When the consumer's and seller's disclosures under this paragraph (f) are provided on separate documents, as permitted under § 1026.38(t)(5), the settlement agent shall provide to the creditor (if the creditor is not the settlement agent) a copy of the disclosures provided to the seller under paragraph (f)(4)(i) of this section.
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#2107266 - 11/14/16 09:53 PM Re: Sellers Closing Disclosure rlcarey
mncompliance77 Offline
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So are you saying the Alta statement is acceptable? I was under the impression that the settlement agent needed to provide a copy of the seller's CD using the model format.

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#2107302 - 11/15/16 01:19 PM Re: Sellers Closing Disclosure JWills, CRCM
rlcarey Offline
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An ALTA statement is not acceptable to a creditor under the Reg. Z requirements, as it does not comply with .19(f)(4)(i). Whatever else a title company wants to provide a buyer or seller is up to them.
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