The Closing Disclosure Statement

by | Oct 16, 2015 | Legal Tips

As I am sure you are aware, the closing of loans originated after October 3 will require the lender to provide the borrower a Closing Disclosure Statement at least 3 business days before closing (consummation). The lender may utilize the closing attorney to either prepare and/or deliver this Closing Disclosure but this disclosure is a loan disclosure, it is not a settlement statement. A copy of the Closing Disclosure should not be provided to the real estate agent before, during or after the closing as it contains confidential borrower information that must be kept secure.  The closing attorney should provide the agent (and any other parties who need a statement of the transaction, including the seller) with a settlement statement at the closing.

If a lender or an attorney provides you a copy of the Closing Disclosure, please ask them to give you a settlement statement instead.  It is no more work for an attorney to do so; it is simply printing the information in the attorney’s file out in a different format, eliminating the non-public, personal information of the borrower.  If you do accept the Closing Disclosure, you must ascertain that the manner in which you store it has the physical and network security required to safe guard the confidential document.  Certainly, you could not store the document at your house or any location where family members or other unauthorized parties could have access. The document would have to be keep under lock and key where no one would be able to gain access or stored on a server with all the necessary network security. As corporate counsel, we do not recommend that you or the company undertake the responsibility or liability associated with possession of the Closing Disclosure.

Columbia History Fact of the Week- I have always thought it was important for a real estate professional to know about our great city. 

Out of towners often ask how did Gervais Street get its’ name. State Senator John Lewis Gervais introduced a bill on March 6, 1786 to officially move the capital from Charleston to the center of the state after legislators from the upstate complained about the difficulty traveling to the then current capital, Charleston. After a heated debate, Senator Gervais convinced the legislative body to centrally place the capital at the township called Friday’s Ferry on the Congaree River. This area is modern day Columbia. So it could be said that John Lewis Gervais is the founding father of Columbia.

Have a great weekend.

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