Signature on Closing Disclosure??!!!

I am just curious as to what everyone's process is for obtaining or not obtaining a signature on the Closing disclosure, why or why not?

Why - because your investors will require it.

Other than that it is up to you. However, having them sign the document at closing goes a long way to prove what you actually gave them.

We obtain their signature at closing as Randy said our investors require it and there is no question as to if it was provided to them or not. In the letter we send with the CD 3 days prior we indicate they do not have to return it we will have a copy available at closing for them to sign and to contact us if they have any questions prior to closing.

^^^^^^^ That is the why and how of it here as well.

I require it, not because of investors [we don't sell our loans] but because, in my mind, it's part of the 'contract'. Especially now that it contains the TIL within it.

We obtain the signature at closing similar to Joker and Iowa. It's included with our doc package.

So, here is a question...

How do you all track receipt of the CD prior to closing?

Do you require a signature to confirm receipt prior to closing, and if so, do you end up with two signed CD's in your scan file?

We have a simple one page form that the officer fills out that the borrower signs indicating they receive the CD if hand delivered. We do not required them to sign the CD the second we deliver it as they have not had time to review it.

If we mail/e-mail we have a simple one page form that we fill out indicating where, address or e-mail and when it was sent. If the applicant does not confirm receipt then you have the mailbox rule. Most of our officers hand deliver the CD's since things are always last minute and they do not want to wait the required timeframe.

Occasionally they bring the first CD signed to closing then there is no need to have them sign again unless there were changes. We would only put one signed CD in the file.

This is our current issue. If the CD was esigned or hand delivered, it is signed day of delivery. If the CD is mailed, we are using the mailbox rule, no signature. Our lenders are also getting a signature at closing. We then have two CD's that are the same scanned in the file. We are just trying to see what other do and figure out if there is a better process. For me reviewing these documents, I dont want to sift through multiple CD's trying to figure out what is what.

We currently are printing a copy of the CD that will be delivered with a big water mark that reads DELIVERY on it.
Switching to a new system and trying to figure out how to carry that over for the review aspects you mention, MRS8.

We have a cover letter for those that are mailed and an acknowledgment for those that are delivered. The acknowledgment also includes a checkbox for appraisal receipt as well...two birds with one stone.

Most of ours are either FedEx'd, emailed (with e-sign compliance) or hand-delivered.
- FedEx - we have tracking confirmation of delivery for the file and the LO makes a call to confirm the borrower has received. We do this because it is usually under the mailbox deliver timeframe and we want to confirm borrower has appropriate 3 days prior to closing. (No signature required)
- Email - sent by secure email that shows a receipt of when the borrower actually clicked on the message and signed into separate system to view document. We track that email in our system with copy for the file. (No signature required)
- Hand-delivered - CD has signature line and primary applicant has to sign and date. Extra copy given to them to keep.

Every loan closing gets a signed CD for the file.

If we are able to confirm receipt of the CD, would there be any reason that another CD needs to be signed at closing unless it was a revised CD?

No

For the first 2 years of TRID, when the CD was delivered in person, my FI obtained the signatures to show 'proof of receipt.' The FI then began its 3-day waiting period from the signature date. A few months ago, MGMT changed the procedure that if the CD is delivered in person, the FI does not have to collect signatures; that the "received' date the FI places in the LOS is documentation enough...I understand that the CD is not required to be signed, but I thought the signature was more of a safety net, or a way to mitigate the residual risk substantially, by obtaining the signatures.

Curious:

What are others doing to show documentation when CD is delivered in person? My FI does collect signature at close, but I am looking for a way to protect my FI in waiving the 3-day presumption of receipt effectively-

Do others think that documentation (a 'received date' in the LOS) is substantial enough in reducing risk?

Thank you in advance for feedback!

We have never required signatures. If it was e delivered we put a copy of the delivery receipt in file. If it was mailed we note on our flow sheet the date it was mailed. If it was delivered in person we note the date it was picked up and which borrower picked it up.

Thank you so much, Dan!

When rescission applies, does the FI document that the CD was delivered to each consumer who has the right to rescind?
How detailed are institutions becoming with this documentation?

In the past, our procedures were to receive signed CD's delivered in person, a 'receipt' from Docusign is delivered electronically, or we count the 3-day presumption of receipt/3-day waiting period out if delivered by mail.

Not only was I notified a few months back that management is no longer requiring signatures, but now I see that the CD is being sent to 1 email address when sometimes there are 2 different email addresses...BUT, I can see that this is found with married couples. 1 email, with a 'viewed' receipt -
Am I really overthinking this?

No. But ae you talking about the preliminary CD or the final?

I require a copy sent to each person, regardless of same/different address. If picked up in person, all parties with Rights have to sign for pickup.

Randy- Prelim. Everyone signs the CD at close.

My question I am about to pose to the residential mortgage dept. is 'where is your proof that all consumers with a right to rescind has received the CD 3 days prior to closing?'

Why do they need the preliminary?

Maybe we are using the word Prelim differently...
The CD, that they will sign at closing, is delivered typically 3 days in advance (due to being sent electronically)...delivery date, and receive date are usually the same day. So the 3-day presumption of receipt is 9 out of 10 times waived, and the FI counts the 3-day waiting period to close.

Unless I've missed something all consumers with the right to rescind are to receive the CD 3 business days before closing.

From 1026.17 - In rescindable transactions, the disclosures required by § 1026.19(f) must be given separately to each consumer who has the right to rescind under § 1026.23.


1026.19(f) - (ii) Timing.

(A) In general. Except as provided in paragraphs (f)(1)(ii)(B), (f)(2)(i), (f)(2)(iii), (f)(2)(iv), and (f)(2)(v) of this section, the creditor shall ensure that the consumer receives the disclosures required under paragraph (f)(1)(i) of this section no later than three business days before consummation.

Exactly. I outlined above how I prove that is what happened. We don't require a signature on the CD, itself, but we have a dated letter to each party if mailed and a dated acknowledgment if picked up.

As to being emailed? It needs to be emailed to each person with a right to rescind.

I think this hinges on the word 'ensure' from Dan's post above. When mailing it, you're meeting the TRID delivery requirement but you're not ensuring they received it. Requiring a signature would likely satisfy that requirement in an examiner's eyes.

Ironically, the regulation doesn't require that you ensure the consumer received the closing disclosure when you mail it. You only have to be able to document that you mailed it to the address provided by the consumer and that three business days elapsed, at which point you can assume it was received.

Of course, secondary market investors may require that you get a wet signature on the closing disclosure. That's their prerogative. As the modern Golden Rule says, the investor has the gold, so the investor makes the rules.