CDF FAQs

The CFPB’s new regulations are the biggest change our industry has seen in many years. Here are the 10 most frequently-asked questions we receive about the new rules.

  1. When should I start using the Closing Disclosure form?

    2. The form applies to any qualifying loan applications received on or after 10/3/15. You cannot use the form for loan applications received before this date.

  1. Which types of loans use the new forms?

    2. The new forms apply to most residential mortgages except for home equity lines of credit, reverse mortgages, mortgages secured by a mobile home or dwelling not attached to land, and loans made by a creditor who makes five or fewer mortgages a year.

  1. I received letters from major lenders (Wells Fargo, BOA, Chase) saying that they will prepare this new form. If they’re preparing the form, why do I need the ability to do so?

    2. You need the ability to generate the CDF for several reasons.

    First, even though major lenders are planning to create this form and will be prepared to do so by 10/3/15, smaller lenders may not. The CFPB allows either the lender or the settlement agent to prepare the form, so we want to make sure you’re prepared to do so if any lender requires it.

    Second, even if these large lenders prepare the form, they need to collaborate with you throughout the process so they’re aware of all the fees that you manage. Entering those fees into Select’s Closing Disclosure screens will let you electronically send that information to lenders via SoftPro 360’s upcoming integration with RealEC’s Closing Insight platform. Many major lenders have stated that they will require settlement agents to use Closing Insight for this collaboration. This integration will let you import the lender’s final Closing Disclosure figures into ProForm so you can prepare a final settlement statement for the closing table. Those final figures will also generate the pending receipts and disbursements on the register.

    Third, several lenders have noted that although they intend to deliver the CDF to borrowers, they will expect settlement agents to prepare and deliver the Seller’s Disclosure.

  1. Can borrowers sign the CDF?

    2. Yes, the form optionally allows borrowers to sign the form, though this is not required. The CDF Page 5 screen allows you to choose whether the document should print signature lines. The form’s signature language says, “By signing, you are only confirming that you have received this form. You do not have to accept this loan because you have signed or received this form.”

  1. The CDF has NPI (non-public personal information) all over it. Do sellers receive this like they would a HUD-1?

    2. Lenders may not want to deliver the full CDF to a seller because it contains non-public borrower information such as the borrower’s loan number, interest rate, and other loan terms. The final rule provides a special 2 page Closing Disclosure for sellers which excludes this borrower information. No special data entry is required for this form – just enter the data as you typically would for the borrower’s form, then print the ReadyDoc named “Closing Disclosure Form (Seller), with print options”.

  1. Can I give borrowers a CDF, but use my own settlement statement in addition?

    2. Yes, you can print a final settlement statement for all parties to review and sign at the closing table. New CDF versions of the buyer, seller, and combined master settlement statements are found within the Settlement Statements folder in the ReadyDoc tree. To produce them, you’d enter the CDF data then print the Settlement Statement, just as you would have with the HUD-1.

  1. Can I still create HUDs and the old settlement statements in Select?

    2. Yes, all these documents are still available so you can access them for any order that is not required to use the new CDF. HUD orders will continue to work as they always have – you can continue to print these forms and fund/disburse from them as needed.

  1. Can I convert a HUD or GFE file into a CDF or vice versa?

    2. Not exactly, although you can review the Overlaying an Order to learn how to use the overlay function as a workaround.

  1. The new form requires fees to be sorted alphabetically on Page 2. Do I have to enter my fees in alphabetical order?

    2. No, the application will automatically sort as required when you save a CDF order. You can add new fees to any blank line in the section and then save to trigger the sort. If you do not want the application to sort automatically, uncheck the sorting option on the order’s Options screen.

  1. The new form requires title fees to say “Title –“ in front of premiums and other title fees. Do I have to type that extra text for each title fee?

    2. No, the application will automatically add “Title – “ for any fee sent to the CDF from the Title Insurance Premiums, Endorsements, or Additional Title Charge screens. You do not need to update your lookup tables on these screens to include this extra wording. Similarly, the application will automatically add “(Optional)” to the description for owner’s title insurance, as required.

  1. Can I customize the CDF?

    2. No, the CFPB regulations allow very few options for customization. The form’s layout, shading, text, font, etc. are all required to match the samples from the CFPB. Adding logos is not allowed. The regulations do allow a single line of text to be added on the bottom of each page. An upcoming release (prior to 8/1) will add fields to the order’s Options screen so this custom text can be easily added without requiring a custom version of the form.

  1. What document does the seller sign at closing?

    2. You can provide the seller with a settlement statement at closing that both the buyer and seller can sign as they would have with the HUD-1. The lender may also ask you to deliver a seller closing disclosure to the seller. This form is not required to be signed, but has an option for signatures if your lender requests it.

  1. Lender Affiliate vs. Non-Affiliate service providers: When are fees are subject to a 10% vs. 0% tolerance?
  1. When does a CDF have to be re-issued? What circumstances reset the 3-day rule?