Posted by NCLisa on 6/26/08 8:17am
Msg #253019

Ever had this happen?

You have a closing scheduled, and you get the docs 2 days prior to closing. Go to closing, borrower is not there. Wait at the lenders office for 30 minutes, and BO calls you and says that he is on phone with lender, and his loan is not approved?!!? I call TC, ask what is up, and they call lender, and call me back 30 minutes later, the loan has not been approved!!

Why in the world would a loan get sent to "docs" if it did not have final approval?

Reply by MistarellaFL on 6/26/08 8:25am
Msg #253023

Yep, once

A processor got fired over the situation.
We were actually just finishing signing when the call from the TC came, shouting
"WAIT!!!! Don't sign anything!!! The loan is not approved!!!"
We all had egg on our face over this particular processor's mistake.
Brw was PO'd, not that I blame him. We had to resign the package the next week when approval came.
Only positive note was that brw was able to get a lower interest rate.

Reply by ME/NJ on 6/26/08 8:44am
Msg #253024

I know someone who had a loan approved, then not approved and while at the closing table the status was still unknown.

The guy already sold his home, and had to rent the home he was buying till the approval went through.

Banks are getting tough.

Reply by MW/VA on 6/26/08 2:10pm
Msg #253119

Most tc's won't release docs until they have final approval from the lender. Someone got
ahead of themselves on that one, and I'm sure someone wil have to account for the mistake.
Too bad you got caught up in it & I hope they paid you for your efforts.

Reply by NCLisa on 6/26/08 7:15pm
Msg #253185

The safeguard is usually the lender can not release docs

to anyone, TC, attorney, anyone without final approval. Most cautious companies, won't let the loan get to doc drawing dept without final approval from underwriting.

I know with WF, they send us instructions only, we prepare the hud, and after hud approval they will release docs to us.