What if the settlement agent did not have the buyer’s CD executed at consummation?

So, actually, there is no technical requirement under TRID that the CD be signed. You can actually leave the signature line off of the CD. There’s a provision that makes the signature line optional for the borrowers.

But it’s a good idea to have it executed because it provides additional documentation that you are following the requirements, especially, for example, the initial CD that has to be received three business days before consummation. It’s good to get some kind of confirmation, either electronic signature or wet signature, that the borrower received it, or some other form of confirmation. Then at closing, if anything changes after that initial CD is provided, there’s actually a requirement to provide a corrected CD at or before consummation and so, it could be helpful to have the borrower sign that corrected CD at consummation just to provide additional documentation that you provided it at or before consummation.

The borrower’s signature can be helpful in that regard and then also, keep in mind that there could be investor requirements that require these documents to be executed. And sometimes, it’s actually more important what the investor requires than what the rule requires because the investors are who are going to purchase the loan. And so, it’s very important to pay attention to what their guidelines say.

Answered By: Richard Horn