Compliance Alliance Question of the Week

Question:
For TRID purposes, when we receive a Preliminary Title CD from a Title Company and it has seller-paid fees on it, do we have to disclose the seller-paid fees to the borrower on our CD or can we leave these seller-paid fees off of the CD we give the borrower?
                                                                      
Answer:
Even though you are able to give separate CDs to the borrower and seller, seller-paid loan costs are required, per the guidance, to be disclosed on the CD that you give the borrower.
 
CFPB, TILA/RESPA Small Entity Compliance Guide, p. 80:
“Seller-paid Loan Costs and Other Costs are required to be disclosed on the consumer’s Closing Disclosure, regardless of whether a separate Closing Disclosure is provided to the seller. Seller-paid real estate commissions are one example of seller-paid costs that may not be omitted from and must be included on the consumer’s Closing Disclosure. (§ 1026.38(g)(4); Comment 38(g)(4)-4).”
https://s3.amazonaws.com/files.consumerfinance.gov/f/documents/2017-10_cfpb_KBYO-Small-Entity-Compliance-Guide_v5.pdf
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