Thread Options
#2145543 - 09/11/17 06:02 PM When There's No Settlement Agent (CloD)
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,551
Cape Cod
Just passing along information from a phone conversation this afternoon with an attorney at the CFPB regarding whether to complete the "Settlement Agent" column in the Contact Information table on page 5 of the closing disclosure when no settlement agent is used.

Paraphrasing the conversation - The regulation doesn't require that you make an entry in that column if there is no settlement agent, nor does it say you should not. Some banks identify themselves in that column when they close a loan themselves (I was at one time a proponent for doing so). Most don't. The CFPB attorney cautioned that in some states there are legal requirements that a settlement agent must be an attorney, and if the lender identifies itself in that column there could be ramifications.

I have concluded that not making an entry is the better option when there is no settlement agent. But leave the heading in place unless you omit the column entirely or replace it with contact information for another person ("A creditor or settlement agent may also omit a column on the table that is inapplicable or, if necessary, replace an inapplicable column with the contact information for the additional person" - last sentence in comment 38(r)-1).
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
TRID - TILA/RESPA Integrated Disclosures Rule
#2145651 - 09/12/17 02:10 PM Re: When There's No Settlement Agent (CloD) John Burnett
Ski Offline
Platinum Poster
Joined: May 2003
Posts: 639
South Louisiana
John, does your above post mean that you have changed your mind regarding your post of 11/01/16:

#2105537 - 11/01/16 02:45 PM Re: Closing Disclosure - Settlement Agent [Re: lgibbs]

I've been convinced that even when the lender does the closing, there is a settlement agent (the lender).

Return to Top
#2145655 - 09/12/17 02:15 PM Re: When There's No Settlement Agent (CloD) John Burnett
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,653
The Swamp
I've been convinced the opposite way all along for one main reason. We are not acting as an Agent [3rd party] for our own purposes/needs because we ARE the lender. If we are legally able to close a loan, we do...but we are not an SA.
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

Return to Top
#2145658 - 09/12/17 02:22 PM Re: When There's No Settlement Agent (CloD) John Burnett
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 78,618
Galveston, TX
Me too smile
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2145659 - 09/12/17 02:24 PM Re: When There's No Settlement Agent (CloD) Ski
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,551
Cape Cod
Originally Posted By Ski
John, does your above post mean that you have changed your mind regarding your post of 11/01/16:

#2105537 - 11/01/16 02:45 PM Re: Closing Disclosure - Settlement Agent [Re: lgibbs]

I've been convinced that even when the lender does the closing, there is a settlement agent (the lender).



I pretty much said so. And I have added an update to the other thread to say so.

I figure if the Bureau can change its mind on this issue, I can certainly do so.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#2145662 - 09/12/17 02:30 PM Re: When There's No Settlement Agent (CloD) John Burnett
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,653
The Swamp
I'm glad the bureau did, and thanks for confirming it!
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

Return to Top
#2145779 - 09/13/17 12:52 PM Re: When There's No Settlement Agent (CloD) John Burnett
Compliance NABW Offline
Diamond Poster
Joined: Oct 2015
Posts: 1,577
Thanks for the info, this is useful.

Return to Top