Posted by NorCalDar on 8/19/05 1:42am
Msg #60142

Per Diem Interest

Why would anyone want to arrange for loan disbursement on a Monday or a day immediately following a bank holiday rather than just arranging for disbursement an a day immediately following a business day? Is there ever an adavantage to arranging to delay until a Monday or day follwing a bank holiday?

Reply by Sheila in San Jose CA on 8/19/05 2:06am
Msg #60146

Why are we up so late?...? re: your post, I think that it would mostly apply in a situation where the closing date is critical (like in a purchase) or a 1031 exchange, If it is supposed to close on 8/18 as agreed in a sales agreement and that is a Monday- then so be it, it would probably fund on Friday and interest would start as of that day, plus Sat and Sun. This adds to what the buyer would need to bring in for closing in order to close on the contract date. At least this is my interpretation of why borrowers would want to be aware of the daily rate that shown.

Reply by NorCalDar on 8/19/05 2:22am
Msg #60147

Late closing for me... sending in all my confirmations for the day so I can sleep in tomorrow a little (gotta get the kid up at 6:30 for school the have a 9:00 signing so won't see much sleep tonight).

I have never had a borrower chose the option of arranging for disbursement on a Monday or a day immediately following a bank holiday.

The reason I ask is that when it comes to the CA Per Diem Interest Disclosure, I have never had a borrower make the choice like they knew what they were doing. They occasionally ask me to tell them which they should chose and after I remind them that I cannot advise them, I will tell them that if they are not sure what choice to make, they could alway call their broker to get advise. But in all cases so far, they have just chosen the option to arrange for dibursement on a day immediately following a business day.