TRID: Separation of Consumer and Seller Information
by Angela Lucas, Sterling Compliance
We continue to get questions on this and are still seeing violations in TRID compliance reviews we conduct for banks, so it seemed appropriate to revisit the matter.
The issue stems from confusion around the TRID rule provision that permits the seller’s information to be omitted from the buyer’s Closing Disclosure (CD) in a purchase transaction where the settlement agent is providing a separate Closing Disclosure to the seller. That provision is limited in scope and does not apply to any and all seller fees and details.
On the consumer’s CD, the rule specifically permits the seller side of the Summaries of Transactions table on Page 3 to be omitted. However, there is no parallel provision that says you don’t have to disclose fees, or portions of fees, paid by the seller on Page 2.
(v) Separation of consumer and seller information. The creditor or settlement agent preparing the form may use form H-25 of appendix H to this part for the disclosure provided to both the consumer and the seller, with the following modifications to separate the information of the consumer and seller, as necessary:
(A) The information required to be disclosed by paragraphs (j)and (k) of this section may be disclosed on separate pages to the consumer and the seller, respectively, with the information required by the other paragraph left blank. The information disclosed to the consumer pursuant to paragraph (j) of this section must be disclosed on the same page as the information required by paragraph (i) of this section.
- Paragraph (j): (j) Summary of borrower's transaction. Under the heading “Summaries of Transactions,” with a statement to “Use this table to see a summary of your transaction,” two separate tables are disclosed.
- Paragraph (k): (k) Summary of seller's transaction. Under the heading “Summaries of Transactions” required by paragraph (j) of this section, a separate table under the subheading “Seller's Transaction,” that includes the following information and satisfies the following requirements:
- Paragraph (i): (i) Calculating cash to close. In a separate table, under the heading “Calculating Cash to Close,” together with the statement “Use this table to see what has changed from your Loan Estimate”:
(B) The information required to be disclosed by paragraphs (f) and (g) of this section with respect to costs paid by the consumer may be left blank on the disclosure provided to the seller.
- Paragraph (f): (f) Closing cost details; loan costs. Under the master heading “Closing Cost Details” with columns stating whether the charge was borrower-paid at or before closing, seller-paid at or before closing, or paid by others, all loan costs associated with the transaction, listed in a table under the heading “Loan Costs.” The table shall contain the items and amounts listed under four subheadings, described in paragraphs (f)(1) through (5) of this section.
- Paragraph (g): (g) Closing cost details; other costs. Under the master heading “Closing Cost Details” disclosed pursuant to paragraph (f) of this section, with columns stating whether the charge was borrower-paid at or before closing, seller-paid at or before closing, or paid by others, all costs in connection with the transaction, other than those disclosed under paragraph (f) of this section, listed in a table with a heading disclosed as “Other Costs.” The table shall contain the items and amounts listed under five subheadings, described in paragraphs (g)(1) through (6) of this section