Title Company does not Prepare Closing Disclosures

I may be getting confused. I am looking at a loan request to buy land....outside of city. It is probably ag-use land, but the applicants intend to build their home on it some time in the future. That makes this a consumer purpose loan subject to TRID.....right??

The chosen title company claims they do not prepare Closing Disclosures for sellers.....only HUD Settlement Statements.

If consumer purpose, secured by dirt, are title companies not required to prepare a Closing Disclosure for the seller?

Pardon me if this is a dumb question.

As to the first part....are they buying it for an agricultural purpose....to eventually build their home on...or both? You might have to employ the mixed-use test in Reg. Z to determine whether it's exempt.

As to the 2nd part (assuming it is indeed subject to TRID).....early on in TRID days, we had a local title company try to use a HUD-1--i told them that simply wasn't acceptable and showed them the citation for how HUD-1s aren't allowed for loans subject to TRID. Might try that hammer over the head, don't you feel guilty for not knowing what you are talking about thing.

(4) Transactions involving a seller.

(i) Provision to seller. In a closed-end consumer credit transaction secured by real property that involves a seller, other than a reverse mortgage subject to § 1026.33, the settlement agent shall provide the seller with the disclosures in § 1026.38 that relate to the seller's transaction reflecting the actual terms of the seller's transaction.

Ahhhh - that says they must provide the disclosure to the seller. It doesn't say that they have to produce it. Who produces it is based on the agreement between the bank and the settlement agent. What additional information the settlement agent provides the borrower - the bank could not care less.

My bank won't accept a title company that won't produce a seller's CD. I guess i should have said it that way.

On business purpose loans is it OK to give HUD's?

Yes, it's okay. Most have migrated to the ALTA settlement statement, loan bug.

As to the SA and the Seller CloD.

All of my normal SA's produce a seller CloD, but especially in the beginning and in some rare instances, I have produced it for them.

Thanks, everyone!!

The Alta settlement statement is an internal document. Check out the ALTA website for verification that it is not to be used as a supplement for the CD or the HUD. I won't accept it in lieu of the proper documentation no matter what the loan type.

TR, I did not mean or say that the ALTA can be substituted when a CD or a HUD is required. The inquiry addressed loans that do not require either one.