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12/02/2015

TRID Q&A: Can Realtor Receive Buyer's Closing Disclosure?

Question: Is it a violation for the buyer’s Realtor to be in the closing room while the buyer is reviewing and signing their Closing Disclosure and loan documents? Is the buyer’s Realtor permitted to receive a copy of the Closing Disclosure without written consent by the buyer?

Answer: The TILA-RESPA Integrated Disclosure (TRID) rule did not change anything regarding privacy. Companies should review their privacy policies to ensure it matches with their data sharing practices. Closing agents are encouraged to consider the role closing data plays in the Multiple Listing Service (MLS) system or agent licensing when assessing how to share data. One of the primary reasons real estate agents are interested in receiving the Closing Disclosure is because they have to report certain data fields to MLS to close the listing. These requirements vary by state, so there is not a uniform set of data fields that will satisfy MLS. Reporting these data fields is a requirement for participating in the MLS system, so the information is needed by the real estate agent. However, not all information on the Closing Disclosure is necessary for real estate agents to comply with MLS requirements, which is why ALTA encourages closing agents to consider what information they provide to real estate agents and what the best method of sharing that information would be.

This being said, there is nothing within the TRID rule that prohibits the buyer’s Realtor from being present while the buyer reviews and signs his or her Closing Disclosure and loan documents. Additionally, the rule does not specifically address who may or may not receive the disclosures. Most lenders, however, will not provide the disclosures to the Realtor even if the Realtor obtains permission from the buyer. If the Realtor would like a copy of the disclosures, he or she can obtain a copy of them directly from the buyer.

The concern with sharing consumer’s personal and financial information is one of the reasons behind ALTA’s development of the ALTA Settlement Statements. The ALTA Settlement Statements may be used in addition to the Closing Disclosure, but should not be used instead of the Closing Disclosure. The ALTA Settlement Statements help title insurance and settlement companies itemize all the fees and charges that both the homebuyer and seller must pay during the settlement process of a housing transaction. There are four versions of the ALTA Settlement Statement are available, the buyer statement, the seller statement, the combined statement, and a statement for cash transactions. Click here to download the ALTA Settlement Statements.

Comments

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Are we still allowed to use the 2010 version of the HUD1 Settlement Statement for Settlement Agent/Realtors information or only the ALTA Settlement Statement mentioned in this news feed?

What is ALTA's opinion about providing the ALTA Settlement Statement to the realtors?

In preparing a CD for a purchase closing,what us the difference in getting the Sellers to sign that vs. ALTA settlement statement. They both disclose the same informstion, just a different format. It seems that everyone us going in different directions and no one know what to do. This is making it extremely difficult on all oarties.

Our biggest grip from realtors is they need the name of the lender to enter into MLS to close the listing. The Seller CDF does not have a field for the buyers lender, however the ALTA Statements (even seller only) contain a lender field. There has been a lot of back and forth on whether we are allowed to disclose the buyers lender to the sellers agent- and our underwriters are saying if it is not on the CDF then it was the intention of the CDF that it should not be disclosed- so the two forms are contradicting each other- and we are stuck in the middle.

I'm getting blowback from listing brokers saying they NEED a copy of the buyer's ALTA Closing Statement so they know the transaction has closed. I tell them that our sending their commission check is evidence that the transaction closed. My state Realtor association reports listing brokers don't NEED the Closing Statement, but are accustomed to gstting it like the now "old" HUD-1. No advice, however, on whether to release it. I've also consulted my underwriter's general counsel and am awaiting a response from her. I contend that buyer's closing fees, which are listed with great specificity on the Closing Statement, are NPI. When I give listing and selling brokers the Buyer's Closing Statement, I redact the fees, except for any that may pertain to the selling broker, e.g., transaction fee charged to buyer. Thoughts, anyone?

Thanks for sharing such an informative article.

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