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#2196986 - 10/31/18 08:01 PM Seller CD
Sara Offline
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Hi,

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

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TRID - TILA/RESPA Integrated Disclosures Rule
#2196998 - 10/31/18 08:54 PM Re: Seller CD Sara
Katherine Offline
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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.

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#2197097 - 11/01/18 06:57 PM Re: Seller CD Katherine
MonicaMc Offline
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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.

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#2197113 - 11/01/18 07:44 PM Re: Seller CD Sara
John Burnett Offline
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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?
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#2197115 - 11/01/18 07:50 PM Re: Seller CD Sara
RR Joker Offline
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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
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#2197121 - 11/01/18 08:12 PM Re: Seller CD Sara
John Burnett Offline
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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.
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BankersOnline.com
Fighting for Compliance since 1976
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#2197133 - 11/01/18 09:01 PM Re: Seller CD Sara
rlcarey Offline
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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?
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#2197149 - 11/02/18 03:25 AM Re: Seller CD John Burnett
Katherine Offline
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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.

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#2197150 - 11/02/18 03:33 AM Re: Seller CD RR Joker
Katherine Offline
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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.

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#2197232 - 11/02/18 07:36 PM Re: Seller CD Sara
It's not easy Offline
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Posts: 127
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.

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#2197321 - 11/05/18 05:58 PM Re: Seller CD Sara
RR Joker Offline
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RR Joker
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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

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#2197408 - 11/06/18 03:17 PM Re: Seller CD Katherine
MonicaMc Offline
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MonicaMc
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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.

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