QUESTION
We are a lender with
some questions regarding disclosing the Closing Disclosure (CD). If we have a borrower and a co-borrower, must
we send both individuals the CD for review? If we e-disclose, for the three
day waiting period requirement do we use the date the disclosure was sent or
the date we receive confirmation that the borrower received the CD? Lastly, if
we have a non-purchasing spouse (NPS), can we add their name to the CD and have
them sign at closing?
ANSWER
In a rescindable
transaction, such as a refinance, the Closing Disclosure must be given
separately to each consumer who has the right to rescind, which includes, in
most states, a spouse not on title. In transactions that are not rescindable,
such as purchases, the CD may be provided to any consumer with primary
liability on the obligation. [12 CFR
1026.17(d)]
As to having the NPS
sign at closing on a rescindable transaction, there is no requirement for the
CD to be signed by the consumer under the TRID rules. The use of signature
lines for documenting receipt of the disclosure is at the option of the
creditor. That being said, you should ascertain whether or not this may be
required by a specific loan program or investor to ensure a purchase of the
loan.
With respect to notification
through e-disclosure, if the creditor has evidence that the consumer received
the CD earlier than three business days after it is mailed or delivered, the
creditor may rely on that evidence and consider it to be received on that date.
Most lenders and investors appear to
be accepting the tracked opening of an email as receipt provided in conjunction
with the E-Sign Act. However, this is not a universal practice, so make sure
you check individual investor guidelines to determine what they will accept as
evidence of receipt.
Joyce Wilkins Pollison
Director/Legal & Regulatory
Compliance
Lenders Compliance Group
