Who is primarily responsible for ensuring compliance with closing disclosure regulations?

The lender is primarily responsible for ensuring compliance with closing disclosure regulations. This responsibility stems from the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA), which require lenders to provide consumers with clear and accurate disclosures regarding the terms of their loans and the costs associated with borrowing.

The closing disclosure must be provided to the borrower at least three business days before the closing of the loan transaction, allowing the borrower adequate time to review the information. The lender must ensure that this disclosure is accurate and compliant with all regulatory requirements before it is provided to the borrower. Additionally, any changes to the loan terms that occur after the initial disclosure require the lender to issue a revised closing disclosure.

While other parties, such as the borrower, broker, and attorney, play important roles in the closing process, it is the lender who bears the ultimate responsibility for compliance with these specific regulations regarding the closing disclosure. This ensures that the borrower is not misled or confused about the financial obligations they are undertaking.