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Is a Final Closing DIsclosure Mandatory?

Answered by: 
John Burnett
Randy Carey

Question: 
Is the Final Closing Disclosure mandatory to provide? If the lender provides Initial CD and the revised CD based on a Change of Circumstance and the borrower signs it, or the presumed date is over, can I skip the Final CD and provide the borrower only closing loan documents? Situation: Initial CD was issued on 10/1. The revised CD with COC was issued on 10/6 and the borrower will sign the loan docs on 10/6. Borrower will sign Revised CD and the loan docs at the same time. Is it possible?
Answer: 

by Randy Carey:

The borrower must receive a correct CD before closing. Whether that CD is delivered three business days prior to closing or a revised CD sometime before closing or at the time of closing. Only delivery is required and signatures on a CD is a lender option.

Answer: 

by John Burnett

The only timing issue in your scenario is whether the CloD reflecting the changed circumstance adjustments was received by the third business day (general definition) after learning of the changed circumstance, but no later than consummation.

First published on 10/30/2021

Filed under: 
Lending
Filed under lending as: 
Closing Disclosures
Reg. Z

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