QUESTION
We are constantly worrying about getting consumer signatures on our TRID disclosures. In fact, we are unsure of signatures on several consumer disclosures. It seems
like a minefield at times to determine if we should be getting disclosures signed.
Here’s our question: what are some of the disclosures that we need to get
signed by the consumer?
ANSWER
Actually, this question comes up more often than you might expect.
At Lenders Compliance Group, we get this question regularly, especially when
there is a transition to a new disclosure protocol. It can be confusing. I will
outline here a few disclosures on which consumer signatures may or may not be
required.
·
Loan Estimate (initial or revised):
o
Not required. Optional. [1026.37(n)(1)
& (2)]
·
Closing Disclosure:
o
Not required. Optional. Signature(s)
for documenting receipt of the Closing Disclosure is at the lender's option, in
order to evidence receipt by borrower three (3) business days prior to closing.
[Commentary ¶37(n); Commentary ¶38(s)]
·
Loan Estimate with signatures versus
Intent to Proceed:
o
Signature(s) for confirming receipt of
the Loan Estimate may not be used as replacement for signature(s) required by
Intent to Proceed. [§1026.37(n); 78 FR 79813]
· Closing Disclosure (non-borrowing
spouse) three (3) business days prior to closing and at closing:
o
Not required. Optional. Signature(s)
for documenting receipt of the Closing Disclosure is at the lender's option, in
order to evidence receipt by borrower three (3) business days prior to closing.
[Commentary ¶37(n); Commentary ¶38(s)]
There are many caveats, but here are a couple to consider. You
should determine if consumer signatures are required by a specific loan program
or investor. Also, the Loan Estimate or Closing Disclosure can be transmitted
in accordance with E-Sign compliance standards; but, there is no regulatory
requirement that either the Loan Estimate or the Closing Disclosure must
actually contain signature(s). [§1026.37(o)(3)(iii); §1026.38 (t)(3)(iii); 15
USC 7001 et. seq.] To appropriately implement the E-Sign process for consumer signatures, and to
review other caveats, it is a good idea to seek the guidance of a compliance
professional.
Jonathan Foxx
Managing Director
Lenders
Compliance Group
