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Does the settlement agent need to provide a copy of the seller's Closing Disclosure tp the creditor?

My bank’s auditor noted that in some instances, the settlement agent had not provided a copy of the seller's Closing Disclosure to the creditor. Must the settlement agent provide a copy of the seller's Closing Disclosure to the creditor?

Yes. If separate Closing Disclosures are provided to the seller and the borrower, the settlement agent must also provide the creditor with a copy of the seller's Closing Disclosure.

Citations

1026.19(f)(4) Transactions involving a seller.

(i) Provision to seller. In a closed-end consumer credit transaction secured by real property that involves a seller, other than a reverse mortgage subject to § 1026.33, the settlement agent shall provide the seller with the disclosures in § 1026.38 that relate to the seller's transaction reflecting the actual terms of the seller's transaction. . . .

(iv) Creditor's copy. When the consumer's and seller's disclosures under this paragraph (f) are provided on separate documents, as permitted under § 1026.38(t)(5), the settlement agent shall provide to the creditor (if the creditor is not the settlement agent) a copy of the disclosures provided to the seller under paragraph (f)(4)(i) of this section. (May 2016)

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