Posted by fiKS on 2/3/05 12:35am
Msg #19261

Disbursement and Recission date is the same on docs

Would lenders disburse funds (during business hours) before recission at midnight? Is this a mistake or do some lenders do this. Funds will be wired directly to borrowers account on the 7th. Docs will be signed on 3rd.

Reply by Becca/FL on 2/3/05 6:55am
Msg #19283

There is no recission on a purchase, second+ home or investment property. RTC applies to principle residence only. Some TCs/Lenders will fund the day of the signing and others will wait to receive docs back and fund the day after signing. If your closing will fund the day of signing, you will be asked to fax the required funding docs before shipping.

Reply by Recission on 2/3/05 7:35am
Msg #19286

Becca you are absolutely correct but I don't think you answered his question.
They disburse the funds on the last recission day, is what he is saying.
They have until midnight to cancel. The mortgage company can have it transferred at Midnight at the time the recission ends.
Midnight is considered the next day, not the 3rd day to cancel. Go Figure...

Reply by Itsme123 on 2/3/05 10:45am
Msg #19316

Flks--Knowledge is pwer but don't get into dispursement

Save yourself alot of headache and do not get into dispursement AT ALL with borrowers. Thereare a million reasons while a loan may not "fund timely" and the last thing you want is a borrower calling you about funding

Reply by fiKS on 2/3/05 3:07pm
Msg #19350

Trapping the borrower?

I agree, I would not want to discuss anything like that with the borrower or suggest I could answer questions about his loan. I was just wondering if the funding date could have been a typo or do some lenders fund the second (literally) when recission ends.

Just curious - is there any legality about funding before recission ends? It seems to me it is like trapping the borrower. It's one thing if a check was disbursed but in this particular case, the funds would be wired directly into the borrower's account.

This is all hypothetical now because the loan has been cancelled (since my last post).

Reply by Becca/Fl on 2/3/05 10:32pm
Msg #19380

Re: Trapping the borrower?

Wires go through the Fed. The Fed does not operate at 12mid, nor do banks, as far as I know.

Reply by PAW_Fl on 2/3/05 11:09pm
Msg #19386

Re: Trapping the borrower?

EFT /ACH (Electronic Funds Transfer/Automated Clearing House) sites at the Fed and most institutions work 24/6 (except holidays). Especially those instituions that are also doing international transfers (SWIFT). Bankers hours (9 to 5) is a myth except for the most senior executives.

Reply by Becca/FL on 2/4/05 10:07am
Msg #19417

Realy? Thanks Paul, good to know. (n/m)