Comment from Anonymous

I have been a settlement agent for over 30 years, and in my opinion the CD is NOT consumer-friendly. It is too long and confusing, and I think it discourages borrowers from fully reading (and understanding) the document. The old HUD settlement sheet was much easier, and borrowers could easily see their costs. I think a "settlement sheet" showing just the figures is more effective. All the other disclosures, etc., included on the CD should be on a different form so it isn't overwhelming. When borrowers receive the CD electronically three days before closing from the lender, who in my state is not the party conducting the closing, they don't have the opportunity to easily ask questions. Since the inception of the CD I find that borrowers don't want to go through the CD at the closing table. When the document is put in front of them they say something like "I've seen this already" and they just sign. People used to be OK with going through a 2 page HUD at the closing table, but the 5 to 6 page CD - no thanks. Too much to read. Every lender I have dealt with prepares and releases the CD after coordinating figures with the settlement agent. We have to balance before they send it to the borrowers. Since I have no idea when a lender will want to send the CD out, I am virtually on-call all the time. I have to be ready to put everything else aside so I can plug in figures from the lender, then fix information the lender doesn't understand such as taxing periods, recording fees, etc.. It can easily span a two hour period from start to finish. It is too time consuming and very frustrating. Lenders also forbid the settlement agent ("SA") from releasing the CD to the borrowers, however the SA disburses funds and must let the borrower know how much money they need for closing. As SA I have to transfer the figures to an ALTA Settlement Statement and provide them with that document. Yet another confusing document because the layout is completely different from the CD. People get confused. The CD must be simpler so the borrower isn't intimidated by it. Put the basic figures on the CD, similar to the old HUD format. Add to that a summary of the information most important to a borrower at closing - the amount of the payment and first payment due date. Put the "additional information about loan", "loan calculations", "other disclosures" and "contact information" on a separate document. I think people will understand more about the costs for closing if the costs are on a separate sheet which is easier to review. By the way, the 3-day period for the borrower to have the CD doesn't turn out to be a 3-day period. Lenders will get a CD to a borrower electronically at 9:00 p.m. and tell them they must e-sign it before midnight. The following day is really the only day they have to review it because the day of closing is the 3rd day. If we close at 9:00 a.m. on the 3rd day, that is effectively 1 day to review the CD. When a borrower gets a CD from a behemoth lender like Chase or Wells Fargo in the evening, the chances of them actually reaching a human being who is knowledgeable enough to answer their questions is zero to none. Then they go to work on the 2nd day and can't call until the next evening. Good luck with that. Then they are at the closing table and they don't want to look at the CD again. That is not an informed consumer.