Bank of America to Handle Production, Delivery of Closing Disclosure

December 23, 2014

Bank of America became the second national lender to announce it will handle production and delivery of the Closing Disclosure when the Consumer Financial Protection Bureau’s integrated mortgage disclosure rules goes into effect Aug. 1.

For most consumer mortgages, a three-page Loan Estimate will replace the initial Truth-in-Lending (TIL) disclosure and Good Faith Estimate, while the five-page Closing Disclosure will replace the final TIL and HUD-1. In September, Wells Fargo announced it also would handle production and delivery of the Closing Disclosure to the borrower.

In a letter to its settlement agents, Bank of America announced it will take responsibility for delivering the Closing Disclosure in order to ensure the borrower receives it three business days prior to loan closing. In addition, Bank America will include a copy of the final Closing Disclosure with the loan documents to be presented to the borrower at closing. For purchase transactions, settlement agents will continue to produce and deliver the seller’s Closing Disclosure.

“The requirement for the buyer/borrower to receive the Closing Disclosure three business days prior to loan closing will intensify the need for Bank of America to work very closely with the settlement agent to schedule the details of the signing/closing,” Bank of America wrote.

In its letter, Bank of America reported it will use Closing Insight, an industry tool developed by RealEC, to support implementation of the new disclosures and exchange all documents and data to ensure that non-public personal information (NPI) is protected. The lender said it will no longer use email, fax and other document delivery methods.

Bank of America also shared an article written by Brian Chappelle, a founding partner of Potomac Partners, who considers the Closing Disclosure a step toward reducing surprises at the closing table. Chappelle said the three-day rule will give consumers more time to compare the Closing Disclosure with information on the Loan Estimate, and give settlement agents more time to prepare for closing.

“We appreciate Bank of America providing guidance on how it plans to handle production and delivery of the Closing Disclosure,” said Diane Evans, ALTA’s president. “By explaining its policies and procedures now, title and settlement agents can plan accordingly ahead of the implementation deadline. ALTA members understand the liability creditors have in regard to the accuracy and delivery of the Closing Disclosure and will continue to ensure transactions close seamlessly and legally.”

Bank of America also advised that many  title and escrow software providers are working with RealEC to support Closing Insight and that settlement agents may contact their providers directly for more information. Settlement agents may submit questions or provide feedback to Bank of America at

Contact ALTA at 202-296-3671 or