CFPB Makes it Easier for Real Estate Agents to Access Closing Disclosures

Real Estate Agents Will Soon Be Able to Access Closing Disclosures

The Consumer Financial Protection Bureau (CFPB) announced some recently proposed updates that allow Closing Disclosures to be shared with a third party. These new regulations make it much easier for realtors or real estate agents to access important documents pertaining to closing. In addition, the ability to access the Closing Disclosure improves the quality of customer service a real estate agent can provide by allowing for open communication with the homebuyer.

When the TILA-RESPA Integrated Disclosure Rule took place last October (2015), real estate agents and lenders were mostly concerned with compliance and delays. However, after putting TRID to practice, real estate agents found out they had another major problem, which was access to the new Closing Disclosure (CD) document.

On June 7, 2016, a letter was sent from the National Association of Realtors (NAR) to the CFPB urging the organization to make changes pertaining to the way Closing Disclosures are viewed. The letter stated, “Since the rule was implemented, 54.5 percent of real estate professionals who were surveyed now have problems getting access to the Closing Disclosure.”

In addition, it can be even more difficult for a real estate agent to access the Closing Disclosure following a delay. As a result of real estate agents being unable to access Closing Disclosures, “50 percent have reported finding missing concessions and incorrect names or addresses, incorrect fees, commissions, and taxes.”

This is a huge contrast to how real estate communications worked pre-TRID.

According to Inman reporter Amy Swinderman, “Prior to TRID being enacted, real estate agents reviewed the HUD-1 with their clients to answer common questions about things like concessions, escrows, commissions and shares of prorated taxes, but since TRID became the law of the land, many lenders are refusing to share the new CD with them.”

The letter was answered with proposed changes by the CFPB to allow lenders to share the Closing Disclosure documents with real estate agents.

“The Bureau has received many questions about sharing the disclosures provided to consumers with third parties to the transaction, including the seller and real estate brokers. The Bureau understands that it is usual, accepted and appropriate for creditors and settlement agents to provide a closing disclosure to consumers, sellers and their real estate brokers or other agents. The Bureau is proposing additional commentary to clarify how a creditor may provide separate disclosure forms to the consumer and the seller,” stated the release by the CFPB.

This makes the closing process much easier, as it allows for better communication between lender, real estate agent, and homebuyer.

An email by NAR President Tom Salomone stated, “[t]oday the CFPB acknowledged that concern by making it clear that it is appropriate and accepted for creditors and settlement agents to share the CD with consumers, sellers, and their agents.”

A few proposed changes were announced, but this particular issue with the Closing Disclosure was addressed to amend the section, “privacy and sharing of information”.

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Good News: Realtors Can Now Access the Closing Disclosure, Says CFPB