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#2227013 - 12/09/19 06:09 PM Seller information required on borrowers CD?
Everest Offline
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If you obtain a copy of the seller's CD are you required to put the seller's information on your borrower's CD? I am wondering as we are being told that we have to and I had thought when this came out it stated we did not have to merge them onto the borrower's CD if we obtained a copy of the seller's CD?

Thanks.

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TRID - TILA/RESPA Integrated Disclosures Rule
#2227014 - 12/09/19 06:17 PM Re: Seller information required on borrowers CD? Everest
Everest Offline
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I should note that we do include the seller paid real estate commission fee and any closing cost/fee that is paid by the seller on the CD.....this is just other costs that do not effect the the borrower.

Thanks.

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#2227020 - 12/09/19 06:49 PM Re: Seller information required on borrowers CD? Everest
rlcarey Online
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rlcarey
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All seller closing costs must appear on the borrower's CD. There is no separation of information that allows you to not show all seller closing costs on page 2 of the CD. Refer to 1026.38(t)(v) for allowable separations of information.
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#2227145 - 12/10/19 09:52 PM Re: Seller information required on borrowers CD? Everest
John Burnett Offline
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When the TRID rule was published one of the significant changes was the incorporation of disclosures of all costs involved in the transaction, not just those borne by the borrower.
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#2227836 - 12/20/19 04:31 AM Re: Seller information required on borrowers CD? Everest
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Can anybody site the actual rule? For years and even to this day my old company never put any seller fees on the borrower's CD. New place I am at now does and I think its ridiculous.

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#2227839 - 12/20/19 12:36 PM Re: Seller information required on borrowers CD? Everest
rlcarey Online
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I gave you the citation that deals with the separation of information between the borrower and the seller already ^^ two posts back. No where in that citation allows you to separate closing costs on Page 2.
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#2227858 - 12/20/19 04:13 PM Re: Seller information required on borrowers CD? Everest
Hawk Offline
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I did look that up and read it, but I had trouble understanding it. I just wanted to know if there was an actual rule that stated seller paid fees needed to be on the borrower's CD, not a rule of what is allowed to be separated, but I guess that in turns answers the question.

During a google search I did find where the CFPB clarified this in a 2016 webinar, along with a post of where you posted that exact clarification. lol

hmmm. interesting.

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#2227934 - 12/23/19 08:08 PM Re: Seller information required on borrowers CD? Everest
John Burnett Offline
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Try looking at 1026.38(g), .38(g)(4) and pertinent Official Interpretations, esp. comments 38(g)(4)-1, -4.
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#2228995 - 01/14/20 06:14 PM Re: Seller information required on borrowers CD? John Burnett
Saintsfan Offline
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If the fees paid by the Seller (R/E commissions) are lower than originally disclosed by us on the Borrower's CD, are we required to issue a revised CD to our Borrower?if so, do we have 60 days to issue the revised CD?

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#2229006 - 01/14/20 06:39 PM Re: Seller information required on borrowers CD? Everest
rlcarey Online
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rlcarey
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Nothing goes to the borrower as it did not impact the amount the borrower had to pay under 1026.19(f)(2)(iii), however:

19(f)(4)(ii) Timing.

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.
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#2229007 - 01/14/20 06:45 PM Re: Seller information required on borrowers CD? Everest
John Burnett Offline
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No. If the information on the borrower's closing disclosure was correct with respect to the borrower's costs and as correct as possible based on information available to the creditor when the borrower's closing disclosure was delivered, there is no requirement that the borrower's closing disclosure be updated to reflect corrections to the seller's actual costs.

However, the settlement agent is responsible for providing the seller's disclosures, and paragraph (f)(4)(ii) of 1026.19 provides ---
"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."

A copy of the corrected disclosures should be provided to the creditor, but it need not be provided to the buyer/borrower.
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#2229273 - 01/16/20 11:37 PM Re: Seller information required on borrowers CD? Everest
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I have a question regarding seller fees on the borrower's CD. The CD in question reflects the title fees for our borrower in Section B which is correct as they did not shop for that service. The title co charged the seller an Fed Ex overnight fee which we disclosed in Section H. We're being told that since the Title-Fed Ex fee was required fee by the title co and we required "title services" for the transaction, it should also be disclosed in Section B (or C) and not in Section H. When I review 1026.38 (f), it states "services the Borrower did/did not shop for. Sections B & C only list those services we require for our borrower, correct?

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#2229274 - 01/17/20 12:02 AM Re: Seller information required on borrowers CD? Everest
rlcarey Online
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I would agree and what real difference does it make. A seller is not entitled to any sort of cure anyway.

Who are you being told this by?
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#2229310 - 01/17/20 05:11 PM Re: Seller information required on borrowers CD? Everest
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Thank you Randy! It was a 3rd party reviewer that cited it.

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