Feedback from REALTORS^® across the nation highlighted the reluctance of lenders to share the new mandated Closing Disclosure (CD) with real estate professionals. Lenders have been concerned that sharing the document was a potential privacy violation of the Gramm-Leach-Bliley Act (GLBA) 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 this:

“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 on this important regulatory victory visit:

http://www.realtor.org/articles/cfpb-makes-clear-lenders-ability-to-share-cd