Settlement agents are using the new ALTA settlement statement with the final CD. It would seem that this disclosure would fall under TILA (any other disclosure). Should investors be checking settlement (disbursement of funds) with the final CD?

Section 131(e) of the Truth in Lending Act (TILA) states that an assignee (purchaser) of a consumer credit transaction secured by real property is liable if a violation that carries a private right of action is “apparent on the face of the disclosure statement,” which can be determined by comparing the disclosure statement to a “disclosure of disbursement,” among other documents.  Therefore, if the ALTA settlement statement is used to disclose the disbursement of funds, an investor may wish to compare that statement to the items on the Closing Disclosure that carry a private right of action, such as the aggregate settlement charges disclosed under section 128(a)(17) of TILA.

Answered By: Amanda Raines Lawrence