Just curious what other financials are doing regarding the timing of the closing disclosure. Our loan originators are pushing to get these sent out as quickly as possible after an approval. Their point being that much can be addressed on a subsequent closing disclosure if changes are necessary. Much that I have read says do the closing disclosure when you are ready to close the loan, not weeks in advance. If you could share what you are doing, or any other thoughts are much appreciated!!

Thank you!

Once you issue the Clod you are done resetting your tolerances. If you issue early and have a changed circumstance, the bank is going to eat the charge.

We don't send it out until the last possible day whether its being mailed 7 days prior or hand-delivered 3 days prior. The less chances of any changes coming up, the better. Plus, our title companies are still getting the hang of things, and are waiting until the last minute on getting balanced.

We are being told:
Lenders in our area are sending out the CD's once the loan is decision regardless of how early as long as the loan has title commitment issued, hazard issued, loan has an approval decision.

This is what Lenders have told us and using as a tool to recruit originators.

As a result we are reviewing and considering adjustments to our procedures. Finding the balancing act between sales and compliance issues is always challenging.

Thanks for asking the poll question

Consider who is telling you this and why, PJG2000.
Not sure how it would even be a tool to recruit especially since if it ends up costing the bank money in tolerance cures it's going to reflect badly on these new hires.

Originators are a different bread. Change is hard. When it is hard, the other players in the industry use that as a tool to get loan originators to Jump Ship to go to a Better Way of Processing/ Friendlier Closing of Loans. No One is really having this conversation, but that is the end result of this regulation. Those Lenders who can keep their originators and balance the compliance will be the entities standing at the end. This regulation has put numerous Attorney's Title Companies and in the end will put a number or Lenders out of Business. Could you stay in the business if you had no originators? Can you stay in Business if you were not in compliance? The answer is No to both. Balance is everything.

I don't understand what the issue is. The borrower should be getting the information when they need it not when it's convenient for the originator to deliver it.

The Closing Disclosure must have the closing date on it. Are these originators scheduling closings weeks out? Or is this 'sending it out ahead of time' really just a matter of a day or two more than whatever it takes to get it delivered the minimum three days before?

It really sounds like your Lenders are giving you pushback that is unfounded and unwarranted. jmho....

On a Purchase Contract in most State it dictates the date of closing that is accurate 95% of the time. In these cases the CD can be issued. If the Closing Date were to change a revised CD can be issued as the pro-rations and the pre-paids should be the only changes based on date movement ( These are distinct charges that can change based on the date movement. These are also the categories of changes permitted by CFPB without creating additional 3 day delays.)

Its a Sales Issue. The competitors are trying to lure the Loan Officer on a Better Service to the Consumer and the Lo. I may not like it, but it is reality. Based on the original poster....a reality that others are facing as well, not just a perception.

Hey, if you are happy with the risk this presents, by all means - go for it. Issuing early is not a violation. MLOs leaving an employ to deliver better customer service and that being tied to being able to issue a closing disclosure early - sorry, sounds like a bunch of hooey to me. If MLOs are leaving, there is whole lot more to the story than that.

We issue the closing disclosure when we have an anticipated closing date. I could see much going wrong in issuing it so far in advance when there are still details that may need to be worked out. Not sure what kind of loan officers you have if they are willing to take such chances.

I couldn't agree with you more on the "hooey" comment! Big Banks have been luring the LO's for sometime on false promises. I understand the cost issue of sending it too early.

If we issued a CD to close, but the client had an issue with a well test or walk thru issue and delayed the closing ( we missed the date) no problem with reissuing for that single issue; however, if the rate expired.....the lender would not be able to charge for the extension. Correct?

If this is correct, would the only option be to honor the lock at our loss or not close the loan?

We don't issue based on an anticipated anything. When everything is in place and the loan is approved, a firm closing date is set and we issue the CD.
Honestly, the intent of TRID was to give the borrower firm information, not have a pattern and practice whereby you tweak things when you actually get to closing. I'm going to be the one grilled by the examiners so there's no way I'm listening to Sales or LOs demands when I know what the Reg says.

That is what I meant as well Truffle. We have a clear to close and then we send it.

If the borrower has to delay the closing, and a rate lock expires, you as the lender have the option of honoring the rate at closing or, if rates have changed, and you aren't willing to close with the disclosed rate, you can notify the borrower of the new rate, and, if the rate on the old CloD is still accurate under the definition of "accurate" in 1026.22, simply provide a new CloD at the closing. But if the rate on the old CloD is now NOT accurate, you issue a new CloD with the correct figures and APR, and postpone closing if necessary to provide a three-day waiting period from the consumer's receipt of the new CloD. That new waiting period is waivable by the consumer in a written statement that the delay would cause a bona fide personal financial emergency.

If the borrower has to delay the closing, and a rate lock expires, you as the lender have the option of honoring the rate at closing or, if rates have changed, and you aren't willing to close with the disclosed rate, you can notify the borrower of the new rate, and, if the rate on the old CloD is still accurate under the definition of "accurate" in 1026.22, simply provide a new CloD at the closing. But if the rate on the old CloD is now NOT accurate, you issue a new CloD with the correct figures and APR, and postpone closing if necessary to provide a three-day waiting period from the consumer's receipt of the new CloD. That new waiting period is waivable by the consumer in a written statement that the delay would cause a bona fide personal financial emergency.

Spot on John! Take advantage of the positives that are known in the rule. Lord knows we need help with this stuff!