Closing Disclosure being used with both borrowers and sellers fees on it, borrower signs this one and there is a closing addendum that generate for the sellers to sign this is ok, correct? All is kept in loan file. My questions is since using only 1 closing disclosure what part does the seller receive and if there is realtor what part does he/she receive?

I am not sure what you mean by a closing addendum - what is that? On a purchase, you would be using the standard CD (Model H-25(A)) and both the buyer and seller get a full copy. Alternatively, if you are preparing a separate Seller Only disclosure (Model - H25(I) - then the seller would get that one and buyer would get the full standard CD. The realtor gets nothing under the regulation.

Ok, exactly what I thought. The buyer and seller give to the realtor if they want to.

Full copy for the seller, does this mean they get all 5 pages?

If you are not using the alternative seller only version - yes. However, you can redact the buyer information on Page 2 and 3.

Thank you. Just double checking.

Under the most recent changes there is no longer any concern with a copy being made available to the realtors, if requested. Most of them like to review it prior to closing. I, personally, don't bother with giving it to them though, I figure the respective parties or closing attorney can do that

We close our loans. Thank you for all of your help and advice.

I called our software program and the way I understand is I can not redact. So If I use the seller one can I print one with seller information on it and give that one to the seller and then print one with all the information with both sides on it, examples sells price on both sides, because on my software if you give buyer/seller it only put the sales price on the buyers side of the buyer one, which I realize is correct. So can I give a full completed one to my buyer and keep a complete in the file or should I just give the buyer and seller copies of the same one and move on. Page 1 has loan # on it, etc. What would be the best practice?

The idea of the two forms is to allow the privacy. In order to provide compliant docs, your system has to have a way to do that.

If you issue the H-25 format, you can provide two copies -- one to the buyer and one to the seller. You can make the following changes to them (this is found in §1026.38(t)(5)(v)):

1. On page 3 of the buyer's copy, you can omit the seller's information required by 1026.38(k), which is all of the section under the SELLER'S TRANSACTION heading, and all of the info required by 1026.38(i) -- the Calculating Cash to Close table.
2. On page 1 of the seller's copy, you can omit:
--- the paragraph required by 1026.38(a)(2) - the paragraph starting with "This form is a statement ..."
--- the lender's name in the Transaction Information box at the top center.
--- all of the information called for by 1026.38(a)(5) -- all of the Loan Information box
--- all of the information called for by 1026.38(b) - (d) -- All of the Loan Terms, Projected Payments and Costs at Closing tables
3. Loan Costs and Other Costs paid by the buyer on page 2 can be omitted (but any closing costs or other costs paid by the seller or third parties will be included, and their totals will appear in section J)
4. On page 4, omit all information required by 1026.38(l) through (n) -- everything on the page.
5. On page 5, omit the Loan Calculations required by 1026.38(o), the "Other Disclosures" required by 1026.38(p), the question required by 1026.38(q)(1), but the big question mark and the "To get more info ..." sentence and the url that follows it stay for the seller. Also omit the 1026.38(r) information relating to the creditor and mortgage broker (if any), and, if you are using the form without a signature line for the borrower, you can omit the statement under Other Disclosures saying "“You do not have to accept this loan because you have received this form or signed a loan application.”

John this is what I would like to do, but I am trying to figure that out on my software. I assume you can not print one with H-25 format and then print one for the seller in the buyer/seller format. That probably would not be compliant.

How are most handling this type of transaction with buyer/seller that close their own loans?

If the buyer and seller are ok with it the H-25 format I assume it is ok to give to both, correct?

You can print one in the standard H-25(A) format for the buyer/borrower and a seller-only H-25(I) format for the seller if your system will do it for you. The H-25(I) format is only two pages, and eliminates all those tables and items that you don't need to give the seller.

Just remember that the buyer gets all of the seller's (and 3rd parties') amounts on page 2 of the H-25(A) format.

Ok, so it is ok do different formats and still be compliant. Do I need keep the sellers in my file also?

Yes, but most buyers won't want to share the loan information with the seller.

Some of us remember the "sets" of HUD-1 forms that were typed once, and appropriate areas of the buyer's and seller's copies were printed with characters to make them illegible to the opposite party. Yeah, I know. Ancient history. HUD-1 forms and typewriters.

Yes, I do. That is how I will like this to be. Lender copy, borrower copy, and seller copy.

Ok, so it is ok do different formats and still be compliant. Do I need keep the sellers in my file also?

Yes. The creditor has to have a copy of the CD for the borrower and the CD for the seller (if different).

Yes, so I can have one with both the borrower and seller information on it example like the hud-1 lender copy, and one for just the seller and be ok.

That would work.

So just keep both in the files.

The requirement is that you have to give a copy to the buyer and the seller that meets the disclosure requirements of 1026.38. Whatever you give to them, you have to retain a copy in the form in which it was provided to them.