New TAR form preserves your access to closing docs when new CFPB rules go into effect

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06/10/2015 | Author: Editorial Staff

Starting October 3, the HUD-1, the Truth in Lending disclosures, and the Good Faith Estimate are being replaced with new forms. As part of these changes from the Consumer Financial Protection Bureau (CFPB), lenders and title companies are concerned about sharing closing documents with anyone other than the principals to the transaction, unless specific permission is granted in writing.

The Texas Association of REALTORS® created the new Authorization to Furnish TILA-RESPA Integrated Disclosures form (TAR 2516) to provide that written permission for lenders and title companies to deliver copies of closing disclosure documents to the principal’s REALTOR®. You can download a blank copy from, and the form is available in zipForm. 

Use this form with your clients in transactions where the buyer’s mortgage application is received by the lender on or after October 3 to make sure you have access to information that will help you guide your clients through closings with minimal surprises.

Learn all about the new CFPB rules.

Categories: Forms, Legal
Tags: cfpb, tar forms


Robert Shaffer on 10/01/2015

If it is a TAR form forget it.  If it is a TREC form, different animal.  Those agents not REALTORS would not have access to this form.  Sometimes the production of another TAR form puts us in more problems that they are supposed to solve..

David Davis on 09/25/2015

@ Juliana Brock The form has nothing to do with privacy!  It merely gives the lender permission (from the borrower) to provide the loan terms.  It does not give the lender permission to release private or personal information about the borrower.  It is true that a lender can refuse to honor the form.  However, as the Agent of the Buyer who is getting a loan to make a real estate purchase with, I would advise that Buyer that their lender’s refusal to honor the document could potentially cost the Buyer tens of thousands of dollars.  The form allows the lender to provide the loan terms to both the selling and listing Agent to provide to their respective Clients.  Should the need for re-disclosure arise the buyer is likely going to need additional time for the closing to take place.  If the lender has not provided the loan terms to both parties, the seller could simply hold out for additional money for the needed (be Federal Law) time to close.  This form combined with the anticipated revisions to the purchase contracts and the changing laws only protects the buyer from a seller who might want to take advantage of a situation.  It also keeps the buyer’s lender treating the buyer fairly.  If the lender doesn’t provide the loan terms to both sides, the buyer doesn’t get the needed extension.  I know that most changes that would require re-disclosure are brought on by something that the borrower did, or didn’t do.  But this is a Federal Law, it is going into effect, and there is nothing that we can do to change that for now.  What we must do, is find a way to work within the limits of the new law.  If you want to make your voice heard, why not attend the next Broker Lawyer Committee meeting on October 7, 2015?

Juliana Brock on 09/24/2015

Just so you know, this form preserves NOTHING. A creditor does not have to adhere to this document and most likely won’t.  This is not a form that is endorsed or approved by TREC and regardless of what you consider it to give you permission see, it do does not change a creditors obligation to preserve the borrowers right to privacy.  I taught several CE classes for originators and all of them go have stated that they will not acknowledge the form.  PLEASE do your own research. The editorial staff of this publication has mislead you before.

Dixie Harrison on 07/26/2015

Just another nail in the coffin.
Stupid, stupid and more stupid. I always thought if it isn’t broke, don’t try to fix it.
Have they never heard of KISS?
Keep it simple stupid.
I give up.

David Davis on 07/08/2015


Rick DeVoss on 07/08/2015

It would appear from the discussion that maybe we’ve lost sight of what it means to be a “customer”....and what it means to represent a “client”.

If you are working with a buyer who has not (or will not) signed a buyer’s representation agreement, then he is your customer, and you owe him no fiduciary duties.  This means he cannot ask you for your opinion of what a property is worth, or what he should bid on it.  This means he can pay too much, and you don’t have to tell him that you think he is doing so.  This means he needs to look at his own “HUD-1” and determine if everything is OK.  —-The only thing you did as a real estate agent was to unlock the door so he could walk through the house.  And you helped him prepare the paperwork for the offer that he wants to make.  You should not be acting as a “negotiator”; you should be acting as a facilitator.

Is everyone aware that this is the way all Brokers act in other states?  —Many states do not enter into an “agency relationship” with their buyers and sellers.  They act solely as facilitators in the transaction.    (It’s much cleaner.)

So if you’re not going to enter into an agency relationship with your buyers as your client, then maybe you should stop acting like you are representing them, or “protecting them”, in some way.  ~They are on their own!

It’s just like a FSBO.  —A buyer can also be a “FBBO”, and he gets the same treatment as a FSBO seller. —Think about what you are doing, and then be sure you explain it to your customers. —That is what the IABS form is all about!!



David Davis on 07/08/2015

Technically you should not be reviewing the closing statement for a buyer “customer”  Only a Client gets that service.

Cecilia Koch on 07/08/2015

@David Davis, thanks for your input.  This is going to make it difficult to review the closing statement if you have a buyer customer.  So many times items have been left off and discovered by the agent.

David Davis on 07/08/2015

@ Cecilia Koch, No they are not very likely to do so.  The reason being is it is a fiduciary obligation created through the agency relationship only that forces you to hold the client’s information confidentially.  You do not owe that duty to a customer, so no you would not get to see the customers information.

Cecilia Koch on 07/08/2015

Will TAR provide a separate form, similar to this form, that can be used with the BUYER CUSTOMER? The current form is for sellers or buyers that we represent as clients.

JOHN ONWUDEBE on 06/29/2015


Rick DeVoss on 06/18/2015

Read it carefully.
The CFPB has “proposed an amendment” for the approval to extend the date to October, but it is not a fact yet.  It’s like any other piece of paper in Real Estate:  you need to read it word for word and not make assumptions.
Here’s the bottom line:  The lenders are prepared to use the new form.  So get ready to do away with the old HUD-1.  It really doesn’t matter much what date we start using it.
>It should be mandatory that every Agent go take a course in the new Closing Disclosure.

Bonnie Wilson on 06/18/2015

Yes, I received notification that the Aug 1 deadline for the changes by CFPB have been extended to October.  Happy-Days!!

Lilly Hughes on 06/17/2015

Just received from a lender:

The CFPB will be issuing a proposed amendment to delay the effective date of the Know Before You Owe rule until October 1, 2015. We made this decision to correct an administrative error that we just discovered in meeting the requirements under federal law, which would have delayed the effective date of the rule by two weeks. We further believe that the additional time included in the proposed effective date would better accommodate the interests of the many consumers and providers whose families will be busy with the transition to the new school year at that time.”

David Davis on 06/15/2015

@ Lilly Hughes, Might I suggest a refresher course in Agency.  As an Agent you are very much responsible for delivering relevant documents to the Principal that you represent.  Not doing so would almost certainly be considered professional misconduct, and a dereliction of the duties of an Agent to their Principal.  Take a look at the definition of Agent:
: a person who does business for another person : a person who acts on behalf of another

For the record that is the reason for the language of “exclusive representation of the Client” in the form that is the subject of this thread.

Lilly Hughes on 06/15/2015

Why the rant? I never said I was going to or that anyone else should make changes to the contract. And, as far as making them, please see below - it’s in the Legal FAQs on TAR’s website:
Yes, but only as specifically directed by your client. Your client should put his instructions to you in writing and specifically state what changes he would like to be made. You should advise your client to contact an attorney for legal advice about the effect of striking out contract language.

The buyer’s agent’s job has never been to deliver lender docs to the to the buyer. I receive the preliminary HUD for review no matter which side I am on. I review it to ensure it complies with the contract and the numbers over which I have control and can calculate (such as tax and hoa prorates) and expenses under the title company section. The federal law mandates that the delivery be made directly to the buyer and does not include agents in that delivery. I want the closing disclosures and am in favor of the form as written.  As written, I can’t see lender being opposed. If written to delegate responsibility for delivery to the buyer by buyer’s agent who wrote the contract, I can see them resisting. After all, they are the ones on the hook for the astronomical fines that fund the CFPB, and I don’t believe the lenders have the power to delegate their responsibilities in these changes.

Please note this is all I have to say on this and am moving on to more productive endeavors this morning. You may interpret my comments as you wish.

Mikey Fox on 06/15/2015

Actually David, my attorney status is only relevant to my analysis of the statements made here. Please do not infer anything further - I think that is a disservice to the discussion.

David Davis on 06/15/2015

@Lilly Hughes, When you say no mention of the Agent being responsible for delivery to the Client, just out of curiosity, what do you think the role of the Agent should be here? 

As for Mickey’s comments, note that he is an Attorney.  If he represents the Client as the Client’s Attorney, he can do that.  I still think that representing a Client as both as Agent and Attorney At Law may be a conflict.  Unless you (or anyone else here for that matter) is an Attorney, you CAN NOT!

Lilly Hughes on 06/15/2015

Well, David Davis, I decided to go back and read the form. Should have done it before I replied the first time this morning.

form authorizes: quote
disclose and furnish a copy of any and all loan estimates, closing disclosures or other settlement statements provided in relation to the closing of the real estate transaction involving the Property, to the above-named Broker or Broker’s authorized agent.
No mention of agent being responsible for delivery.

Lilly Hughes on 06/15/2015

David, it seems that I missed the point regarding buyer’s agent being “responsible” for delivering the disclosures. I want the disclosures delivered to me at the same time or sooner and in the same way as they are delivered to buyer by lender. Why would TAR want to put the responsibility on our back?

Additionally, I wasn’t planning to make manual changes to the form. I inferred from Mickey’s statement “that if she were to draft the form” as a recommended change to the form by TAR and not as something we should be doing directly on the form.

David Davis on 06/15/2015

That’s great, but are you also the Attorney At Law, and of Record for that real estate Client?  Seems to me that might be a conflict.

Mikey Fox on 06/15/2015

Fortunately, I have a law license. wink

David Davis on 06/15/2015

@ Lilly Hughes I think that is the whole purpose of the form which is the subject of this thread.  The disclosures will be sent to the Buyer’s Agent who then must immediately deliver it to the buyer (one of the roles of an Agent-Reasonable Care & Diligence).  The purpose of the form is to get the disclosure into all the parties (and related service providers) hands as soon as possible. 

@ Those of you thinking about altering the contract, At no time should an Agent insert language into a contract that directly or indirectly contradicts or modifies any other language in a contract. Doing so would constitute the practice of law, and could very well render the contract invalid, or place your Client into harms way.

While we all are still in the invention of the wheel process with this new law, as well as the new forms and changes to existing forms, stop trying to “re-invent the wheel”.  The law is there, now we have to find a way to comply with it.  Stay focused on the objective.  Help the Client get the deal they want.

Lilly Hughes on 06/14/2015

I also wanted to add that the three days is not from the sent day; it is from the date the buyer receives the notice. I saw somewhere that is from the sent date, which is not correct. So, if we were to get something like on or after ____ date, three would not be the magic number.

Lilly Hughes on 06/14/2015

Mickey, I like your idea of on or within ____ days.

David Davis on 06/14/2015

@Mickey Fox, You can recommend for or against all you want.  This is a FEDERAL LAW that parties are going to have to comply with.  Naturally if your seller wants to only entertain offers from cash buyers (typically much less than those with financing contingencies), they (the seller(s)) are perfectly welcome to do so.  As for the lender(s) not accepting or complying with the TAR form, again that is their choice, but with the current suggestions being sent to the Commission for changes to comply with the new law, if they don’t follow the rules, by sending the disclosures to all parties when required, then the Buyer does not get the extension as required by the new TIRD re-disclosure, unless they pay for it.

Mickey Fox on 06/14/2015

@David Davis re “FREE extension” when buyer information changes…

I’m not certain that I could advise a seller to provide a “free extension” (whether it is written into the promulgated contract or not). Many times, these extensions are caused by the buyer’s own lack of diligence or “little white lies” on their application. That being the case, a seller (who may be backed up on another contract in purchase) should not suffer without the ability to seek remuneration or otherwise.

That being said, were I to draft the purchase contract language, I would change the it from its current “on or before,” to “on _______, or within ________ days thereafter.” This language at least provides a hard stop which will allow a seller out of contract should the buyer have multiple issues, which could possibly cause a continuous loop of closing date “resets.”

I will also commend the responses asking whether the mortgage companies will even honor the new TAR form. In my experience, they seem to always like their own documents better and can be quite obstinate in doing so.

Don Thomas on 06/12/2015

As an affiliate member of TAR and a lender I can tell you that we are worried about this provision and absolutely consider the REALTOR input vital in reviewing the final numbers on the new Closing Disclosure.  I’m glad TAR has stepped up and created this form.

Bonnie Wilson on 06/11/2015

Charlotte is absolutely correct about the lenders being the ones responsible, and they must comply with the CFPB.  I believe TAR is trying to be proactive in giving us something to present to the lenders.  The lenders/escrow agencies I have talked to feel a form of “authorization” from the buyer will be adequate for them to release information; final decision; however, rests with the CFPB.  Also, please realize that CFPB has not necessarily finalized all the requirements yet.  I believe they are still considering our feedback, especially from Texas.  Let’s stay calm and carry on and see what August 1st really brings.

Rick DeVoss on 06/11/2015

Thank you, Evelyn!
More Agents should be proactive like you are.

Evelyn Kilgore on 06/11/2015

I have had the good fortune of seeing the HUD, and have helped with corrections that otherwise would have delayed closing had they had not been corrected.  One that really sticks in my mind is: the Address of the Property being purchased was wrong.
I asked politely “are you sure that this is the correct address”?  Answer, “This what the bank gave me and I am using it”!  I had to ask (not so politely) to please check this address.  It was wrong at the bank, and it was further wrong on the HUD.  I use the HUD to verify what I know about the property and the transactions to be true and correct.  I only stomp my foot when I have to, and it is for the good of the whole community of the transaction.

David Davis on 06/11/2015

Keep your eyes on the ball REALTORS®!  This form is there to protect the buyer.  There are going to be changes to the contract.  Those changes will deal with the buyer needing an extension to closing due to an unforeseen need to re-disclose the loan to the buyer.  This form helps establish an evidence trail that will entitle the buyer to a FREE extension (only to allow for the re-disclosure) to closing.  The language in the contract being considered has to do with giving the buyer an extension to the closing date when needed to comply with the new rules by CFPB on the TRID.  The language is going to require that the buyer’s lender send the disclosure to all parties of the contract so that the seller is on notice that a delay in closing maybe mandated by the new Federal law.  Thus the buyer should not have to pay a penalty for this needed closing extension.

Charlotte Leach on 06/11/2015

I also wonder if the lenders will allow the form to be used, since they are the ones who will be fined?

Nancy Strack on 06/11/2015

I would tell my clients that they will getting forms that they may not understand and if they would like for me to review them to be sure that they are in compliance with the contract, I’d be happy to do so.  I would also tell them that they may want an attorney to review them before closing.

Lilly Hughes on 06/11/2015

Good question, Mike Smith.

Mike Smith on 06/11/2015

I wonder if lenders will honor this form; they are the ones facing heavy fines for non-compliance with the CFPB.

Rick DeVoss on 06/11/2015

I don’t know if I understood a previous comment correctly, but if you are helping a Buyer purchase a house, you should be looking at the HUD-1 long before closing!  ~And God forbid if you are not doing this while you “represent” a buyer!

Any Agent who is letting the loan officer, or the title company processor, explain the HUD-1 to the Buyer is shirking their duties.  I would never send a copy of the HUD-1 to a buyer of mine, because it is just so confusing to most people.  I have pulled my business from a loan officer who thought he could explain it to a FTHB over the phone. 

In many cases, the Buyer’s Agent is the only one who knows what all of the conversations have been since Day #1.  So it is frequently the Agent who can catch any errors or omissions on the HUD-1.  I ask the title company to send me the “preliminary” copy, and many times we have to make changes before the Underwriter makes the final approval.  IF you have explained what all the fees and charges are going to be to the Buyer, then he rarely has to “see” the HUD-1 prior to closing.  What most people care about is how much money they have to bring to closing, and if that number makes sense to them, they don’t need to see all the debits and credits prior to going over it at closing.

Maybe the people who don’t look at it before closing are the Agents who don’t understand the form in the first place.  ~Just wait until after August First!


Lilly Hughes on 06/11/2015

Those of you issuing negative comments ought to go to more than one of the many classes on the August 1 closing changes.  I’ve been hoping that TAR was going to help us out on some of this stuff. The heavy-handedness is coming from the feds who haven’t a clue of the mess they’ve stirred up. Most people are assuming one or both of attitudes: ignore it and it’ll go away or Pollyanna. Somebody besides the principal needs to see the closing disclosure or whatever it is now called. The very group in charge of it are the ones who generally makes the error and how does a first-time buyer know what to look for. And as to the person who says if we wrote the contract we have a buyer’s rep needs to review client vs customer.

David Davis on 06/11/2015

Let me first begin by saying that I was in attendance at the TREC Broker/Lawyer Committee meeting on May 22, 2015 when this was discussed.  The purpose of this form is allow for the lender (who will soon be preparing the TRID) to send a copy to both the buyer and seller through their respective Agents so as to establish a trail of evidence that the lender did in fact disclose timely when it comes to the buyer getting an extension to closing as a result of a delay caused by a last minute change to the TRID.  Keep your eyes open for changes coming to the contract that will allow for this extension.  This TRID is a federal thing, that we Texas REALTORS are going to have to figure out how to work with.  It also seems to fortify the need for a Buyer’s Representation Agreement for any buyer that is planning on using a loan (no I wont use the mortgage word, since we don’t have them in Texas) to make their purchase with.

Sandy McWilliams on 06/11/2015

It seems that those handling our real estate forms have nothing else to do.  We are not to give “legal advice” but every form we work with…when explaining a listing or sales contract is just that.  Ridiculous.

tommie easley on 06/10/2015

If you are a REALTOR then we already have a buyers rep or a listing agreement if our name is on the contract both title and lenders get a copy of it seems like this form is redundant

Bonnie Wilson on 06/10/2015

Thanks TAR - looks like you got it done! grin

Allwyn Pesek on 06/10/2015

Nevermind…I just read the rest of the paragraph.

Allwyn Pesek on 06/10/2015

Will this form be available in ZipForms?  If so - when?

John Boswell on 06/10/2015

I’d like to nominate Tim Thornton for the Legal Review Committee TAR.
Seriously though, if govt. officials have an oversight such as whether or not the Realtor themselves can see the closing statement, shouldn’t we fix that? This might come from the Department of Redundancy Department, but that’s just Uncle Sam at work.

Tim Thornton on 06/10/2015

This is just more heavy handed silliness.

For a state that is so “hands off” business in its posture, this move is yet another contradictory move by the legal committee (very similar to the change in how licensed contractors have to be used for post inspection repairs) to make the business more complicated and add more unnecessary paperwork.

Is this just another way to generate legal reactions? Make it harder for Realtors to do their job, please. Let’s add more paperwork to confuse buyers and sellers and make them wonder whether or not Realtors should be double checking the HUD before we go to closing. Realtors will see the HUD at closing—so what is this really going to do? (of course, by the time we get to closing, the HUD has already gone through a series of approvals, so if there is something wrong, as is the case 20% of the time, it is pretty much too late to get it corrected and still close/fund on time.

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The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

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