Creditor Liability for Seller's Closing Disclosure

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Question:

Since the settlement agent prepares the seller's Closing Disclosure in a purchase transaction, we as lender are not always able to get a fully complete CLoD with all information provided. The rules makes clear the settlement agent is to prepare the seller's CLoD and provide it to the creditor. We sometimes ask multiple times for the fully completed seller CLoD to be provided but often it is not completed to our satisfaction. I'm trying to determine what liability the creditor has? Must we simply document our due diligence in attempting to obtain this, even multiple times, to get a complete document and if impossible, go with the most complete document we can get, or must we refuse to fund the loan until the settlement agent provides what we think complies with the rule?

Answer:

I think you can only do so much with this situation. Keep butting heads with the settlement agents in the hope that something will sink in, but don't hold up a closing. Document your efforts thoroughly, and use whatever influence you have to avoid using a settlement agent that won't cooperate. Aside from retaining the copy of the seller's closing disclosure, you don't have responsibility unless as lender you fill the settlement agent role.