This question has reverberated through the mortgage industry since TRID went into effect last October, as there is still confusion over which parties should have access to certain information.
To clear things up, Richard Horn, who led the final TRID rule, recently told the American Land Title Association: “In all cases, the seller information will have to be provided to the lender under the TRID rule. Either the seller’s information will be included on the borrower’s Closing Disclosure or it will be provided to the lender in the form of a copy of the seller’s Closing Disclosure.”
ATS Secured hosted a webinar called “Post TRID Challenges and Innovative Solutions,” where this question was asked as well, where Horn, Wes Miller, CEO of ATS Secured and Brent Laliberte of Bayou Title presented. Their answers are below.
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Question: Can you please reiterate that it is the settlement agent’s responsibility under TRID to provide the seller’s CD? As a lender this is so problematic that title companies and such do not, under their obligation under the rule.
I was going to reiterate that, it is a requirement under the rule under 19(f)(4), for the settlement agent to provide the seller’s CD.
I can tell you, we haven’t had any issues with that, that’s been going pretty smoothly, the bigger issue that we’ve had is, the Realtors are trying to get us to release that seller’s CD or that buyer’s CD to them, and that’s when we just tell them that’s obviously that’s a lender form, that we have no authority to release.
What we’ve been seeing lately is some kind of homebrewed authorizations, ‘Hey look, my client said it’s okay to give me this,’ look, that’s not good enough for me, I need to comply with the rule, I need to give it to the consumer, and if you want to get it from the consumer, you need to get it from the consumer, but absent written authorization from the lender allowing us to release the CD to the Realtor, we’re not even touching that, but getting it to the seller is not a problem for us.
I’ll reiterate that this is why it’s so important for lenders, where they have the ability to do so, to really pay attention to the settlement agents that they are doing business with. Imposing some type of reasonable requirement, like, third party certification of compliance with ALTA’s best practices or other even more advanced certifications.
Because there is a great deal of potential liability with these TRID disclosures that actually could be caused by a settlement agent not complying with TRID, providing inaccurate information, or not following the closing instructions. Making sure that you are dealing with settlement agents that actually have the proper compliance management systems, and proper certifications, could be helpful in reducing the risk of that liability.
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