CFPB: Agents can receive closing disclosure
Real estate professionals officially are entitled to receive a copy of the closing disclosure from lenders, according to an announcement from the Consumer Financial Protection Bureau (CFPB). Agents traditionally have used the information in the disclosure form to advise their clients during transactions, but about two years ago, when the CFPB made sweeping changes to the settlement process, some lenders stopped making the form available due to privacy concerns.
The National Association of REALTORS has been working to clarify with the CFPB the customary procedure for real estate professionals to receive the closing disclosure. NAR has argued that nothing in such a procedure affects the CFPB’s newly instituted privacy rules for lenders. About a year ago, the CFPB did release this clarification, and last week’s action makes it official.
NAR President William E. Brown said in a statement that the final rule “again made clear that lenders may share disclosures with third parties, including real estate agents. This was common practice for years in advance of Know Before You Owe, and REALTORS are eager to see that cooperative atmosphere take hold once again.”