The CFPB has stated, “The creditor must give the Closing Disclosure form to the consumers so that they receive it at least three business days before the consumer closes the loan.” The American Land Title Association (ALTA) has suggested a total of seven days is needed. There is no specific guidance prohibiting electronic transmission of the Closing Disclosure.

The broad scope of the Consumer Financial Protection Bureau’s authority affects the way it views a real estate transaction, as evidenced by some of the new language being adopted and made part of the real estate mortgage lexicon. For instance, on CFPB-promulgated documents the borrower is now referred to as “the consumer.” The lender is “the creditor.”

Real estate professionals know the HUD-1 well. “Please send me an updated HUD-1” — the term rolls easily off the tongue with no hesitation. As well it should. It’s been the law of the land since 1974 when the Department of Housing and Urban Development mandated the HUD-1 settlement statement be used in federally backed residential mortgage transactions.