Title Agents Advised to Use Texas Disclosure Form T-64 to Correct All Incomplete or Incorrect Disclosures on Closing Disclosure
Since TRID went into effect and lenders took over the role of preparing the Closing Disclosure, title agents have experienced challenges with CDs that have incomplete or incorrect disclosures. Those challenges have also been evident in TDI audits, as shown in the most recent quarterly report where 98 agents were cited for violating P-73. Many of these violations occurred when the title agent failed to clearly and fully disclose what was necessary to the consumer.
TLTA has been asked to share some guidance with Texas title agents regarding the use of Form T-64. It is understood that lenders have control over the creation of the Closing Disclosure and at times may aggregate (combine) fees on the form, may not display the correct payee or may not display a fee as required by Texas law. In those instances, title agents should use Texas Disclosure Form T-64, required in every transaction where a CD is used, to clear up and resolve any and all incorrect or incomplete disclosures.
Form T-64 provides great flexibility to title agents to disclose the required information to consumers. In Procedural Rule P-73(e) it clearly states, "Additional blank lines may be added to Form T-64 as needed to disclose additional items." In addition, the last section of Form T-64 is called "Other Disclosures." This gives the title agent the ability to add all the lines and information necessary to clear up any charges that are not fully disclosed on the Closing Disclosure.
Some examples of items that must be fully disclosed on the T-64 are:
- Title insurance premium correctly reflected as required by Texas law
- Amount (% or $), name and the service provided for those sharing a portion of the title insurance premium
- Any fees payable to the settlement agent that were not disclosed on the Closing Disclosure
- Real estate commission payable to anyone other than the broker(s) disclosed on the CD
- Individual recording fees not fully disclosed on the Closing Disclosure
- Any other charge/payee combined or not disclosed correctly on the Closing Disclosure
- Endorsements combined on CD
- Third-party vendor fees showing on CD as payable to settlement agent or other incorrect party
- Notary fee paid out of escrow fee at disbursement
It is also important to note when additional lines are added, the Texas Disclosure Form T-64 may become a three-page document. If this occurs P-73(f) states, "The last three paragraphs, beginning with 'The Closing Disclosure was assembled' and ending with the acknowledgment paragraph, must be kept together on the same page with the signatures." Many title agents are adding the allowable lines but then failing to abide by this part of the rule. It is important to fully disclose but to also keep the required paragraphs together with the signatures.
If you have additional questions about the required use of Form T-64, you may contact TDI’s Title Examination Office at TitleExaminations@tdi.texas.gov