When there is no title company serving as a settlement agent in a mortgage loan transaction, should we list our own information in the “Settlement Agent” blanks on pages 1 and 5 of the Closing Disclosure (CD), or leave them blank?

We believe you should leave these spaces blank on the CD if there is no settlement agent involved in the mortgage loan transaction.

Regulation Z states that for every closed-end consumer credit transaction secured by real property, the creditor shall disclose on page 1 of the CD, “[t]he name of the settlement agent conducting the closing, labeled ‘Settlement Agent’,” and “[t]he number assigned to the transaction by the settlement agent for identification, labeled ‘File #.’” Regulation Z also requires disclosure of the settlement agent’s contact information under the heading “Contact Information” on page 5 of the CD.

Regulation Z’s Official Interpretations related to the “Contact Information” on page 5 state that “columns are left blank where no such person is participating in the transaction.” Additionally, a separate comment states that generally, “where a disclosure is not applicable to a particular transaction . . . [t]he portion of the form pertaining to the inapplicable disclosure may be left blank unless otherwise provided.” Consequently, we do not believe that a bank should include its own information in sections of the CD reserved for settlement agent information when there is no settlement agent involved in the transaction.

For resources related to our guidance, please see:

CFPB, Annotated Closing Disclosure

Regulation Z, 12 CFR 1026.38(a)(3) (“For each transaction subject to § 1026.19(f), the creditor shall disclose the information in this section: . . . (3) Under the heading ‘Closing Information’: . . . (iv) The name of the settlement agent conducting the closing, labeled ‘Settlement Agent.’ . . . (v) the number assigned to the transaction by the settlement agent for identification purposes, labeled ‘File #.’”)

Regulation Z, 12 CFR 1026.38(r) (“For each transaction subject to § 1026.19(f), the creditor shall disclose the information in this section: . . . (r) In a separate table, under the heading ‘Contact Information,’ the following information for each . . . settlement agent (under the subheading ‘Settlement Agent’) participating in the transaction: . . .”)

Regulation Z, Official Interpretations, Paragraph 38(r), Comment 1 (“Form H-25 of appendix H to this part includes the contact information required to be disclosed under § 1026.38(r) generally in a five-column tabular format (i.e., there are columns from left to right that disclose the contact information for the creditor, mortgage broker, consumer’s real estate broker, seller’s real estate broker, and settlement agent). Columns are left blank where no such person is participating in the transaction. For example, if there is no mortgage broker involved in the transaction, the column for the mortgage broker is left blank. . . . A creditor or settlement agent may also omit a column on the table that is inapplicable or, if necessary, replace an inapplicable column with the contact information for the additional person.”)

Regulation Z, Official Interpretations, Paragraph 38, Comment 1 (“Where a disclosure is not applicable to a particular transaction, form H-25 of appendix H to this part may not be modified to state ‘not applicable’ or ‘N/A.’ The portion of the form pertaining to the inapplicable disclosure may be left blank unless otherwise provided by § 1026.38. For example, the disclosure required by § 1026.38(r) of the consumer’s or seller’s real estate broker may be left blank for a transaction that does not involve real estate brokers, such as a refinance or home equity loan.”)