TAK I N G F L I G H T
S U M M E R 2015
A Quarterly Publication for the Chicago Metro Area in this issue
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From the Top ............................................................... 1-3 Ask the Title Officer .................................................... 4-5 What’s New at First American Title ......................... 6-14 Items of Interest ........................................................... 15 Your Point of View ........................................................ 16
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F R O M T H E TO P... Three Things By: John Hollenbeck EVP, Corporate Business Director Wow - just weeks away from the implementation of TRID, the TILA RESPA Integrated Disclosure Rule. As we approach October 3rd, here are three personal observations to consider as you prepare to implement the new rule: 1. Notwithstanding the constant drumbeat to the contrary, the new Closing Disclosure is not exactly a replacement for the existing HUD-1 Settlement Statement. 2. Most lenders will produce and deliver the initial borrower’s Closing Disclosure. Most lenders will also produce later versions of the Closing Disclosure but may rely upon the settlement agent to deliver an amended Closing Disclosure at closing. 3. Doing our work early will be important. Borrower’s Closing Disclosure is not a replacement for HUD-1 Settlement Statement. The existing HUD-1 Settlement Statement is mandated by Regulation X, the federal regulation implementing the Real Estate Settlement Procedures Act, or RESPA. It requires the settlement agent to issue the final HUD-1, which reflects what happened at closing. The key here is the HUD-1 is a settlement statement.
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IL - 08/2015
Conversely, under the new rule, the lender, not the settlement agent, is obligated to issue the borrower’s Closing Disclosure three days prior to consummation. Sure, the lender may delegate responsibility to the settlement agent, but the lender remains liable for its content, and the basic character of the disclosure remains the same-that is, the borrower’s Closing Disclosure is a lender’s pre-closing disclosure, dare I say an estimate, even an approximation, of what will take place at closing. Continued...