The New Closing Disclosure Form

What is changing?

  • The new closing statement form, called the Closing Disclosure (CD), will be used on loan applications taken for new mortgages after October 3, 2015. The lender, not the closing agent, will prepare and deliver the CD.
  • The CD must be delivered to the buyer (now known as “the consumer”) at least three (3) business days prior to the scheduled closing date. Most lenders will send the CD to the consumer via regular U.S. Mail which requires that an additional three (3) days be added to the waiting period.
  • The CD sent to the consumer will not include “seller’s side” charges or credits. The closing agent, not the lender, is responsible for completing and delivering the seller’s side of the CD. The CD must be delivered to the seller at or before closing; the three (3) day rule does not apply to sellers.
  • Real Estate Agents will not receive an advance copy of the CD before it is delivered to the consumer. The lender will send the CD to the consumer and the closing agent only. The lender may also restrict the closing agent’s ability to send a copy of the CD to real estate agents, so you may need to obtain a copy from the consumer.
  • The following three (3) changes to the CD after delivery to the consumer trigger the need for re-disclosure and a new three (3) day waiting period:
  1. Inaccurate APR;
  2. Different loan product; or
  3. Addition of a pre-payment penalty.


What do Real Estate Agents need to  do?

  • Communicate to the closing agent all of your buyer paid charges ten (10) to fourteen (14) days prior to the scheduled closing date.
  • Provide the closing agent with your real estate company’s state license number and your real estate license number for the CD.
  • Consider two (2) pre-closing walk-throughs. Changes and adjustments affecting the value of the property (as determined by the lender) may trigger additional disclosure and review periods. Therefore, you may want to have the first inspection seven (7) to ten (10) days in advance of the scheduled closing date and a second inspection on the day of closing.
  • Negotiate realistic contract terms. A closing within thirty (30) days from date of contract may no longer be a viable option.


In what kinds of transactions is the CD not required?

  • Reverse Mortgages
  • HELOCs or Home Equity Lines of Credit
  • Commercial Loans
  • Cash deals


The statements made herein are for informational purposes only and are not intended as professional legal or tax advice.

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