The Closing Disclosure is a consumer disclosure document required under the authority of the Consumer Financial Protection Bureau (CFPB) when new financing is being obtained in connection with a refinance or purchase of real estate. The new lender is required to deliver the Closing Disclosure to the borrower not later than three days prior to the consummation of the loan transaction, when the borrower will be signing the new loan documents. Because the escrow holder assumes responsibility for the accurate settlement of the overall transaction, the lender relies upon the escrow holder to collect and report many of the charges and adjustments which must be included in the lender’s disclosure document. In addition, the escrow holder assists the lender by delivering the seller’s Closing Disclosure when the loan is related to a real property sale.
