How to use ALTA’s Settlement Statements

September 24, 2015

As the Oct. 3 implementation date of the CFPB’s TILA-RESPA Integrated Disclosure (TRID) rule approaches, there has been talk about how the new ALTA Settlement Statements should be used in conjunction with the new CFPB forms.

ALTA created model Settlement Statements based on the settlement statements that are used today in conjunction with the HUD-1. These Settlement Statements are intended to provide uniformity to the marketplace and may be used alongside the Closing Disclosure to help the industry meet its legal and regulatory obligations. If a Settlement Statement is used, the totals must match the Closing Disclosure.

The ALTA Settlement Statements allow settlement agents to itemize all the fees and charges that both the homebuyer and seller face during the settlement process of a housing transaction. These statements were designed to be modified and expanded to allow settlement agents to show any fees that may be applicable in their regions, and to disclose items that are not otherwise disclosed on the CFPB’s Loan Estimate or Closing Disclosure forms. The Settlement Statements also allow the settlement agent to disclose information like disbursement dates or other important dates to the transaction, including recording dates and tax payoff dates.

Another benefit of using the ALTA Settlement Statements is the ability to disclose the actual premiums of title insurance charged to the homebuyer or seller during the closing transaction. In the majority of states, the cost of a homebuyer’s title insurance premiums will be inaccurate on the Closing Disclosure form due to a mandatory calculation method imposed by the Bureau in situations where the lender’s and owner’s title insurance policies are simultaneously issued. Many state regulators require settlement agents to disclose the actual costs for each fee the homebuyer is responsible for paying. The ALTA Settlement Statements help settlement agents disclose the accurate costs to homebuyers.

Wells Fargo and Bank of America will allow use of the ALTA Settlement Statement.

Contact ALTA at 202-296-3671 or