Hi,
I don't know if this is defined state specific, but can someone explain this to me:

A closing disclosure has the following dates listed:

issue date 10/9/18
closing date 10/10/18
disbursement date 10/16/18

To verify timing of the three day period, am I to use the closing date listed or the disbursement date? some of the other loans I've looked at show the closing date and the disbursement date as the same date but they are always at least 3 days after the issue date. what are some circumstances that would cause the closing date and disbursement date to differ?

The borrowers (and anyone who has the right to rescind, if applicable) must receive the initial CD at least 3 business days prior to the closing date. Those dates you quote don't seem to be in compliance. Rescission is a good example of why the closing date and disbursement date wouldn't be the same.

(The dates MIGHT be in compliance if the CD you are looking at isn't the initial CD, but rather a corrected CD that didn't require a new 3 day wait.)

Thank you for the response. This is the only CD. I would agree with you, but the wording in the guide makes me question....

Small Entity Compliance Guide section 10.2:
---"The rule requires creditors to provide the Closing Disclosure three business days before consummation. Is "consummation" the same thing as closing or settlement?

No, consummation may commonly occur at the same time as closing or settlement, but it is a legally distinct event. Consummation occurs when the consumer becomes contractually obligated to the creditor on the loan, not, for example, when the consumer becomes contractually obligated to a seller on a real estate transaction.

The point in time when a consumer becomes contractually obligated to the creditor on the loan depends on applicable State law. (1026.2(a)(13); Comment 2(a)(13)-1). Creditors and settlement agents should verify the applicable State laws to determine when consummation will occur, and make sure delivery of the Closing Disclosure occurs at least three business days before this event.---"

This is why I am confused since I don't know if consummation takes place on the closing date or the disbursement date.

Am I understanding the guide correctly? And it must be a matter of what my state's law defines consummation as, correct?

This is why I am confused since I don't know if consummation takes place on the closing date or the disbursement date.

Generally consummation is the date (closing date) the consumer signs the legal agreement (note) which binds them to the terms of the agreement. It may vary by some states but I'm not aware of any other than maybe CA may be one.

If you are not sure when consummation takes place in your state then you need to consult the bank's legal counsel.

Being the only CD in the file doesn't mean anything in and of itself either. I'll bet there was an initial CD given three days prior but something changed so another was issued the day before. From the sounds of things, the initial was probably incorrectly disposed of. It needed to stay in the file. If you use an LOS, check the disclosures table and see who did what when. You might be able to recreate the initial with some good tech help. Of course, this is only to document what happened not to cya what didn't.

We are a small branch, no legal counsel available. I am awaiting my supervisor's response.

I will double check if there's a way I can see if there was more than one CD generated. I do not have access to the particular program but I will look into that option as well.

Thank you everyone

We are a small branch, no legal counsel available.

Small financial institution or not when it comes to the legality and regulatory compliance of your contractual documentation legal counsel should be sought by the bank's management team.