What is the purpose of issuing two separate closing disclosures?

The purpose of issuing two separate closing disclosures is primarily rooted in the protection of confidentiality regarding sensitive financial information. Each party in a transaction—the buyer and the seller—has access to different pieces of information that may not be relevant or necessary for the other party to know. By separating the disclosures, the transaction respects the privacy of each party's financial details, including costs associated with the property that one party may not need to disclose to the other.

This practice aligns with regulatory standards aimed at ensuring that personal and financial data are treated appropriately and safeguarded from unauthorized access or misuse. It helps maintain trust among the parties involved in the transaction by clearly delineating what information each party is entitled to access.