CFPB Makes Clear Lenders’ Ability to Share CD

Published Aug 09, 2016

NAR has been actively monitoring the implementation of the “Know Before You Owe” also known as the TILA-RESPA Integrated Disclosure rule by the Consumer Financial Protection Bureau. Feedback from Realtors® across the nation highlighted the reluctance of lenders to share the new mandated Closing Disclosure with real estate professionals.


Lenders have been refusing to share the CD citing potential privacy violations of the Gramm-Leach-Bliley Act or Regulation P.  However, an exception to Regulation P already allows lenders to distribute the CD to third parties, including real estate professionals.


CFPB affirmed the Regulation P exception by including the following language in the recent TRID proposed rulemaking: 

“Based on its understanding of the real estate settlement process, the Bureau understands that it is usual, appropriate, and accepted for creditors and settlement agents to provide the combined or separate Closing Disclosure as a confirmation, statement, or other record of the transaction, to consumers, sellers, and their agents, or information on the status or value of the financial service or financial product to their customers or their customers’ agents or brokers.”


For additional information, read NAR’s Issue Brief.