Lenders & Title Agents Hesitant to Share Buyers’ Closing Documents

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Prior to the TILA-RESPA Integrated Disclosure implementation last October, title companies and lenders typically shared HUD-1 closing documents with realtors so they could review them for errors and overcharges. Now, many lenders and title agents are concerned they may be violating regulations or breaking federal privacy laws by sharing “non-public” information. To make matters worse, some lenders are even prohibiting title agents from sharing documents with realtors.

The Latest Unintended Consequence

The Consumer Financial Protection Bureau’s new attitude toward enforcement has caused many unintended consequences, and removing realtors from the review process is just the latest example. TRID was meant to simplify the mortgage process and give buyers and borrowers more information before making a decision. But with lenders fearful of sharing documents with any party not explicitly permitted in legislation, the chance of errors and ensuing delays is increasing.

Closing Disclosures Errors

54% of realtors recently surveyed by the National Association of Realtors said that they had experienced difficulty in receiving closing documents, and that when they finally received them they found errors. Some estimate that up to half of all closing disclosures contain errors—ranging from simple clerical mistakes to consequential errors that could derail the transaction. Inconsistencies between the closing disclosure and the sales contract will be obvious to the realtor, but buyers are less likely to notice.


Some title agents have begun giving realtors a customizable “settlement statement” provided by the American Land Title Association (ALTA) that itemizes all fees and charges. Because it contains no personal “non-public” information, it eliminates the risk of privacy violations while still allowing realtors to review fees, counsel their clients, and submit data to their local multiple listing service. Realtors should discuss this matter with their title company as soon as possible to avoid delays.

Title Insurance and Closing Services from Lakeside Title

Lakeside Title Company is a title insurance company that works with builders, lenders, and realtors in Maryland, Washington D.C., Northern Virginia, and Southern Pennsylvania. We offer a full range of closing services and searches. For more information, please visit our homepage.

Legal Questions?

If you have a question for an attorney, please contact Lakeside Title Company’s affiliated Law Firm, Deardorff, Rath & Pichon, LLC.

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