Compliance Alliance Q&A 2/4/2020

Question:
Can I use proof of disclosing the Closing Disclosure to the borrower from the Title Company, or does the proof have to be from us the Lender?

 

Answer: 
As far as specific evidence of delivery for the Closing Disclosure, Reg. Z doesn't specifically require any one type of evidence. The Bank, however, would want to have documentation showing that it complied with TRID's delivery/timing requirements. Additionally, the regulation does permit settlement agents to provide the CD. Ultimately, however, the creditor remains responsible for ensuring compliance with applicable regulatory provisions.

(1) Provision of disclosures —
(i) Scope. In a transaction subject to paragraph (e)(1)(i) of this section, the creditor shall provide the consumer with the disclosures required under § 1026.38 reflecting the actual terms of the transaction.
...
(iii) Receipt of disclosures. If any disclosures required under paragraph (f)(1)(i) of this section are not provided to the consumer in person, the consumer is considered to have received the disclosures three business days after they are delivered or placed in the mail.

12 CFR 1026.19(f)(1)(iii): https://www.consumerfinance.gov/policy-compliance/rulemaking/regulations/1026/19/#f-1-iii

(v) Settlement agent. A settlement agent may provide a consumer with the disclosures required under paragraph (f)(1)(i) of this section, provided the settlement agent complies with all relevant requirements of this paragraph (f). The creditor shall ensure that such disclosures are provided in accordance with all requirements of this paragraph (f). Disclosures provided by a settlement agent in accordance with the requirements of this paragraph (f) satisfy the creditor's obligation under this paragraph (f).

12 CFR 1026.19(f)(1)(v)(i): https://www.consumerfinance.gov/policy-compliance/rulemaking/regulations/1026/19/#f-1-v