“Can a creditor require a consumer to sign and return the Loan Estimate or Closing Disclosure?
It depends. While the TRID Rule does not require consumers to sign the Loan Estimate or Closing Disclosure, it provides creditors the option to include a line for consumer signatures to acknowledge receipt. 12 CFR §§ 1026.37(n), 38(s). A creditor may include the signature line and require the consumer to sign the disclosure, but only if the consumer receives the disclosure in a form that they may keep. 12 CFR §§ 1026.37(o)(1)(i), 38(t)(1)(i). The consumer must have the ability to retain a copy of the disclosure after returning the signed disclosure to the creditor.
For example, a creditor may require a consumer to return a signed copy of the Closing Disclosure; however, the creditor must ensure that the consumer receives at least one copy of the Closing Disclosure, in a form that the consumer may retain, no later than three business days before consummation. 12 CFR § 1026.38(s)(1), 19(f)(1)(ii)(A), and 38(t)(1)(i). If the consumer receives only one copy of the Closing Disclosure and the creditor requires the consumer to sign and return that copy, then the consumer has not received the Closing Disclosure in a form that the consumer may keep and the requirements of § 1026.38(t)(1)(i) have not been met.” (Optional Signature Line, # 1)
Because this requirement only applies to creditors who require a signed copy of the LE and CD to be returned to them, we are currently working on a software solution which will enable clients to select whether they want one or two copies of the LE and CD to print per person who normally receives a copy of such documents, based on their business practice (e.g., in a rescindable transaction, each person who has a right to rescind will receive separate copies of the CD; the new functionality will allow creditors the option of having either one or two copies given to each such person).
However, in the interim, to ensure compliance with 12 C.F.R. §§ 1026.37(o)(1)(i) & 38(t)(1)(i) as interpreted by the CFPB (as well as Ibid. § 1026.27, regarding foreign language copies of the LE and CD), we are configuring all of our standard copies of the LE and CD to print in duplicate.
Clients who wish to have only one copy print per person who normally receives the LE and CD should contact Client Support at the number listed below to have such configuration changed.
This change will be in Production on July 2, 2020, though clients can test this change in our Stage environments effective immediately. Any questions or concerns related to this change should be directed to Client Support at 1.800.497.3584.