Wells Fargo Issues Guidance for their Network of Closing and Settlement Agents

Wells Fargo issues guidance for their network of closing and settlement agents in light of the upcoming closing Disclosure Rules which take effect August 1, 2015.

As a result of years of parlaying and feedback from both the lending and title insurance industries, in addition to other interested parties, Wells Fargo on September 24th issued direction to settlement agents on how they will handle the housekeeping roles of Wells Fargo and their network of title insurance agents.

Emphasizing the new Integrated Truth In Lending Act (TILA) Rules, Wells Fargo has established procedures on some threshold requirements of the new disclosures.

So as to clarify the roles of the interested parties (lender and settlement agent), the newsletter clarifies some distinct timing procedures involved in the closing process: the three day disclosures and their content.

  1. Wells Fargo will continue to work jointly with settlement agents in establishing the data and information in the disclosures;
  2. Wells Fargo will continue to be responsible for the TILA disclosure information;
  3. Wells Fargo will control the generation and delivery of the borrower’s closing disclosure in accordance with the new three-day requirement Rule;
  4. Should there be a change in the disclosures, Wells Fargo will handle any necessary re-disclosures;
  5. The settlement agent will be responsible for addressing the seller’s information and forwarding the documentation to the seller within prescribed time limits, and provide Wells Fargo with a copy of same;
  6. Scheduling the closing will be a collaboration between all parties as it is now, but greater emphasis must be placed on maintaining the three (3) day closing notice disclosure requirements (especially in multiple or piggy-back sale scenarios)
  7. Settlement agents will continue to be responsible for conducting the closings.

Wells Fargo sates it will continue to keep settlement agents advised on how they are addressing the new Rules and its impact their lending and title industry interaction. Other leaders in the banking industry will surely have their own or similar requirements and procedures tailored to streamline the closing process for the benefit of all parties involved.

As a title agent, we appreciate the necessity of open communications between all parties under the new Rule in every transaction and will continue to exceed our clients’ needs for successful real estate closings.

Stay tuned for further updates and information on this and other important topics affecting our industries.

Posted by United One Team Member on 9/30/2014

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