Thread Options
#2196986 - 10/31/18 08:01 PM Seller CD
Sara Offline
New Poster
Joined: Oct 2018
Posts: 14
Hi,

Do you review seller CD's prepared by title companies for compliance? If so, what are you reviewing?

Return to Top
TRID - TILA/RESPA Integrated Disclosures Rule
#2196998 - 10/31/18 08:54 PM Re: Seller CD Sara
Katherine Offline
Member
Joined: Aug 2017
Posts: 62
It really depends on your resources and risk tolerance. I have noticed gaping holes in the License ID's and addresses for the broker info. Sometimes, the title companies also fail to include their own contact information. I will also review the fees to match up with the seller's settlement statement. I do notice they tend to put their own fees in Section C, instead of Section B, in instances where the borrower did not shop.

Return to Top
#2197097 - 11/01/18 06:57 PM Re: Seller CD Katherine
MonicaMc Offline
100 Club
MonicaMc
Joined: Dec 2013
Posts: 236
Land of Oz
Originally Posted By Katherine
It really depends on your resources and risk tolerance. I have noticed gaping holes in the License ID's and addresses for the broker info. Sometimes, the title companies also fail to include their own contact information. I will also review the fees to match up with the seller's settlement statement. I do notice they tend to put their own fees in Section C, instead of Section B, in instances where the borrower did not shop.


We also do this.

Return to Top
#2197113 - 11/01/18 07:44 PM Re: Seller CD Sara
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,598
Cape Cod
And now the bigger question for Katherine and MonicaMc -- If you find these flaws in the copy of the seller disclosure provided to you, what are you doing about it? Taking the time to review those disclosures is a waste of resources if you aren't acting on your findings, right?
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#2197115 - 11/01/18 07:50 PM Re: Seller CD Sara
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
Originally Posted By Sara
Hi,

Do you review seller CD's prepared by title companies for compliance? If so, what are you reviewing?


Absolutely and prior to closing wink Really cracks me up when, even today, we still get random ALTA statements instead of CD's cry
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

Return to Top
#2197121 - 11/01/18 08:12 PM Re: Seller CD Sara
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,598
Cape Cod
One great reason to review the seller CD before closing (if you can get your hands on it then) is to make sure you get all the seller costs on the borrower's disclosure.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#2197133 - 11/01/18 09:01 PM Re: Seller CD Sara
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 78,971
Galveston, TX
And since the settlement agent is actually acting as an agent for the lender, where does vendor due diligence fall into this equation?
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2197149 - 11/02/18 03:25 AM Re: Seller CD John Burnett
Katherine Offline
Member
Joined: Aug 2017
Posts: 62
We ask them to make corrections and provide us with a copy of the CD. There have been times that we've had to escalate issues to the regional corporate. I had one settlement agent insist that the seller/development corporation was not represented by a real estate broker. However, an entity here cannot practice real estate activities (sell) without a license. I even pointed to the purchase contract which showed the broker and the licensure but for some reason, the settlement agent refused so the matter was escalated and handled.

Return to Top
#2197150 - 11/02/18 03:33 AM Re: Seller CD RR Joker
Katherine Offline
Member
Joined: Aug 2017
Posts: 62
Originally Posted By RR Joker
Originally Posted By Sara
Hi,

Do you review seller CD's prepared by title companies for compliance? If so, what are you reviewing?


Absolutely and prior to closing wink Really cracks me up when, even today, we still get random ALTA statements instead of CD's cry


Happens to us too...along with the occasional horror of rogue companies that insists on sending out their own version of a buyer's CD though we have clear instructions that we prepare the buyer's CD.

Return to Top
#2197232 - 11/02/18 07:36 PM Re: Seller CD Sara
It's not easy Offline
100 Club
Joined: May 2009
Posts: 124
I agree with Randy. I think we need to do a better job of vendor due diligence, however sometimes we are limited when there is only one place to close a loan within a 200 mile radius.

Has anyone ever started producing the Seller CD along with the buyer CD? Just curious.

Return to Top
#2197321 - 11/05/18 05:58 PM Re: Seller CD Sara
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
I have upon request by the SA...if I have any question at all to them being able to handle it correctly, or easily, I've actually offered to produce it for them.
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

Return to Top
#2197408 - 11/06/18 03:17 PM Re: Seller CD Katherine
MonicaMc Offline
100 Club
MonicaMc
Joined: Dec 2013
Posts: 236
Land of Oz
Originally Posted By Katherine
We ask them to make corrections and provide us with a copy of the CD. There have been times that we've had to escalate issues to the regional corporate. I had one settlement agent insist that the seller/development corporation was not represented by a real estate broker. However, an entity here cannot practice real estate activities (sell) without a license. I even pointed to the purchase contract which showed the broker and the licensure but for some reason, the settlement agent refused so the matter was escalated and handled.


We also have them make any changes. We do a Seller balance in our system so we know if the title companies Seller CD is correct or not. Our borrower CD, the Seller CD, and the ALTA settlement statements all must match bottom lines and the Sellers CD must also be in compliance. We get a lot of push back on needing the Sellers (new) address and also on the Agent information being completed, and like Katherine, we have escalated the issue farther up the title company chain.

Return to Top