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#2197947 - 11/09/18 05:05 PM CD Required at Closing
clinds Offline
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If we issue a CD three days prior to closing and it is signed, are we required to provide another CD at closing? If nothing changes, I do not see why or where it states this is required. We are having investors push back because we do not have the CD that was signed at closing.

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TRID - TILA/RESPA Integrated Disclosures Rule
#2197956 - 11/09/18 06:04 PM Re: CD Required at Closing clinds
Skittles Online
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You are correct - if the CD has not changed there is no regulatory requirement to give another at loan origination. Additionally, there is no regulatory requirement to have the document signed.

HOWEVER - investors see things differently and we generally must use their requirements in order for them to purchase loans. Here - we give a second CD and at loan origination and have it signed.
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#2197957 - 11/09/18 06:07 PM Re: CD Required at Closing clinds
RR Joker Offline
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I've never considered the CD I deliver early to be the executed CD. That is done at closing. Not saying you can't, It's just never occurred to me to be anything other than an early review doc.

ETA: We retain the delivery date unless there is a subsequent change.
Last edited by RR Joker; 11/09/18 06:07 PM.
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#2198006 - 11/09/18 09:31 PM Re: CD Required at Closing clinds
John Burnett Offline
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When Cordray told us in Boston back in 2013 that TRID would start a trend toward eliminating extra paperwork in real estate transactions, I remember thinking that's a wonderful idea, but there are too many moving parts and parties with an interest in those deals to believe there's any real hope of shrinking the documentation load. It's like trying to turn an aircraft carrier under steam with a rubber dingy and a paddle.
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#2198043 - 11/12/18 11:31 PM Re: CD Required at Closing clinds
Truffle Royale Offline

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If you have investors pushing back, you're going to have to do another CD at closing. It's their $$ and their rules, even if TRID doesn't speak to it specifically.

John, Cordray obviously hadn't seen the new 1003 when he made that statement.

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#2198051 - 11/13/18 12:13 PM Re: CD Required at Closing clinds
rlcarey Online
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Accept the 1003 is the creation of Fannie and Freddie. The CFPB takes a lot of bashing, but let's make sure they deserve it.
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#2198059 - 11/13/18 01:36 PM Re: CD Required at Closing rlcarey
Adam Witmer Offline
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Originally Posted By rlcarey
Accept the 1003 is the creation of Fannie and Freddie. The CFPB takes a lot of bashing, but let's make sure they deserve it.

But the new 1003 IS (in part) the result of trying to align with TRID and HMDA, both revisions of the CFPB...
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#2198067 - 11/13/18 02:04 PM Re: CD Required at Closing clinds
rlcarey Online
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Of which, the use is totally optional by a lender unless they are selling into the secondary market.
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#2198068 - 11/13/18 02:07 PM Re: CD Required at Closing clinds
RR Joker Offline
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This ^^
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#2198122 - 11/13/18 09:01 PM Re: CD Required at Closing clinds
Truffle Royale Offline

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I stand corrected on blaming the CFPB for the new 1003.
However, most banks will use it if for no other reason than to keep the door of selling portfolios off at a later date open.

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#2198127 - 11/13/18 09:18 PM Re: CD Required at Closing clinds
RR Joker Offline
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<<<---not most banks smirk Thank goodness smile
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#2198220 - 11/14/18 07:41 PM Re: CD Required at Closing clinds
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I really wish we could "Like" comments on here LOL

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#2198234 - 11/14/18 08:17 PM Re: CD Required at Closing clinds
John Burnett Offline
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You just did.
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