How do I handle the situation if the consumer states that they never received the Closing Disclosure (CD)?
Simply call the lender and tell them the consumer states that they did not receive the CD in advance and then inquire if the lender would like you to proceed. Remember, if the lender used the “mail-box method” of delivery (either mailing or emailing the CD seven days in advance), there is a presumption in the Rule that the consumer received the CD without requiring proof of receipt. Therefore, it is entirely possible that the lender met its obligation but the CD got lost in the mail/email.
If a consumer writes a statement specifically waiving their right to the three-day review is there a provision to allow for this?
There is a provision in the Rule stating that the borrower can waive the three-day waiting period after they received the Closing Disclosure (CD) or the revised CD ONLY if the borrower has a Bona Fide Personal Financial Emergency. The phrase is undefined but they give one example, “[t]he imminent sale of the consumer’s home at foreclosure, where the foreclosure sale will proceed unless loan proceeds are made available to the consumer during the waiting period, is one example of a bona fide personal financial emergency.” This is a very high bar to set and within the Rule the CFPB is concerned about expanding the use of waivers fearing that any expansion will lead to abuse. This waiver request must be in writing and must provide details for the basis of the request. It will be up to the lender to determine if a waiver will be permitted. A borrower may not waive the review period on behalf of the seller.
Where on the Closing Disclosure (CD) do we put the seller’s mortgage payoffs?
According to the Rule, any payoffs for seller liened items appear in Section N (on Page 3 of the combined CD and on Page 1 of the seller-only form). This is only for items that are liened at the time of consummation and not for items that may become liened at a later date.
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The information provided is for informational purposes only, courtesy of Old Republic National Title Insurance Company (june 16, 2015), and should not be used or relied upon for any other purpose. This information is not intended nor should it be construed as providing legal advice. Always seek the advice of competent counsel with any questions you may have regarding any legal issue.
