Real estate professionals are now officially entitled to receive a copy of the closing disclosure from lenders, the Consumer Financial Protection Bureau (CFPB) has announced. While agents had traditionally used information in the HUD-1 disclosure form to advise their clients during transactions, some lenders, concerned with the new TRID (TILA-RESPA Integrated Disclosure) rules and privacy concerns, stopped providing the form.
About a year ago, the National Association of REALTORS® obtained an informal clarification from the CFPB 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 in accordance with the existing exception within the Gramm-Leach-Bliley Act (GLBA) allowing lenders to share the CD with third parties.
The CFPB’s recent action makes it official and finalizes the rule. The CFPB recognizes the CD as a “record of the transaction,” which is “informative to real estate agents and others representing both the consumer credit and real estate portions of residential real estate sales transactions.” The CFPB notes that CD sharing is permissible to the extent it is consistent with GLBA and is not barred by applicable State law.