Posted by Airborne on 10/3/05 3:05pm
Msg #68551

Closing Instructions

Has anyone every had the borrower intitial the closing instructions. The reason I am asking is because I am asked to go back to the borrower and have them initial the 9 pages. I have never had the borrower do this because these docs. do not pertain to them.

Reply by jj_mi on 10/3/05 3:14pm
Msg #68554

I always have them initial the closing instructions. They do pertain to the borrower.

Reply by Airborne on 10/3/05 3:18pm
Msg #68555

I will have to disagree with you, please show where these 10 pages apply to the borrower and not to the title company.

Reply by Brenda_NC on 10/3/05 3:29pm
Msg #68557

I always have the borrower initial these pages. If nothing else it covers me and lets the lender know that the borrower saw these pages.

Reply by Marie_NJ on 10/3/05 3:31pm
Msg #68559

Closing instructions relate to the details of the borrower's loan and additional information re: the property taxes, and other applicable conditions which must be followed by the title company so the loan is processed correctly. Please note there may be information included in the closing instructions which indicate borrower's requirements. Each Title Company and Lender vary, I have had borrowers initial the closing instructions and title commitment per the company's instructions.

Reply by Marie_NJ on 10/3/05 3:32pm
Msg #68560

Brenda, you are right. Better safe...

Reply by Airborne on 10/3/05 3:36pm
Msg #68562

why do more than you have to.

The borrower initialing these pages aknowledges that these requirements have been done and they are not the ones that need to do these instructions, the title company is.

Reply by B__CA on 10/3/05 3:50pm
Msg #68568

"why do more than you have to." To cover yourself"

The borrower initialing indicates they know these things needs to be done to close the loan.

Reply by Airborne on 10/3/05 4:04pm
Msg #68575

I read it as the title company needs to do these things to close the loan.

Reply by PAW_Fl on 10/3/05 7:13pm
Msg #68616

I suggest you re-read the closing instructions. The instructions are those that are required to close the loan. Granted, 99% of the time, these instructions are for the title company, but all too often there are instructions for the borrowers too. And, some instructions to the title company must be agreed to be the borrowers, such as impounds, before the loan is closed. Quite often, depending on the lender, there is a page or two in the closing instructions that the borrower must initial or sign. Some packages even have "Specific Closing Instructions" directly aimed at the borrower.

Reply by CaliNotary on 10/4/05 1:18am
Msg #68695

"why do more than you have to"

You're being sent back out to correct this and you're STILL asking this question?

I would say that the answer is that it's much quicker to take the extra minute at the signing than it is to make an entire second trip and take the extra phone calls and resend the package. Why do more than you have to when all you have to do to avoid it is get a few pages initialled?

Reply by jj_mi on 10/3/05 3:36pm
Msg #68563

The closing instructions have all the loan information so I would guess the borrowers should see this. I have done loans that don't have a place for initials.

Reply by CarolynCO on 10/3/05 3:56pm
Msg #68571

If there is a place for initials or signing instructions instructing me to get initials, then I will. If no indicated line for initials or instuctions, then no initials.

Reply by BrendaTX on 10/3/05 4:12pm
Msg #68580

Re: Closing Instructions--ditto again, Carolyn CO. nm

Reply by Charm_AL on 10/3/05 4:51pm
Msg #68596

I agree w/ CarolynCO 100%....n/m

Reply by Sherri_IN on 10/3/05 7:15pm
Msg #68618

Countrywides Closing instructions are for the Title Company or Settlement Company to initial and sign. They are not for the borrower to initial. The borrower has no way of compling with the instructions. Those instructions are for the closer to prepare the closing statement and isuue the title policy. I prepare the closing statements on Countrywides a few times a week and would never ask the borrower to initial those instructions.

Reply by Mitch_MD on 10/3/05 4:02pm
Msg #68574

Yep, every single page

As stated by others already, it covers your tracks and you don't have to worry about going back for a re-sign.

Reply by Airborne on 10/3/05 4:08pm
Msg #68577

Re: Yep, every single page

But your having the borrower initial something that they have no way of completing.

Reply by jojo_MN on 10/3/05 4:14pm
Msg #68581

Re: Yep, every single page

They are initialling that they saw the pages, not that the conditions are met.

Reply by Veronica_CA on 10/3/05 4:44pm
Msg #68592

I've had loans for Countrywide where there is a place for initials but the closing agent has asked me to stop having the borrowers initial because this is where they need to initial saying that they are acknowledging that they read the instructions and then sign the last page. I stopped having borrowers initial those pages and I haven't had anything come back. I also acknowledge there are other lenders who have a place for borrowers to initial the closing instructions and also a place for their signature.

So I guess my answer would be; it depends on the lender.

Reply by LilyMD on 10/3/05 4:48pm
Msg #68594

I have the borrower initial every page. That includes any pages without initial lines and includes any closing instructions. Why? No borrower can accuse me of shuffling pages past them. They see everything. Their initials prove it.

Reply by CarolynCO on 10/3/05 6:28pm
Msg #68610

Lilly wrote
*I have the borrower initial every page. That includes any pages without initial lines and includes any closing instructions. Why? No borrower can accuse me of shuffling pages past them. They see everything. Their initials prove it.*

*every* page?? That's an awful lot of work and time. This might come back to bite you in the butt, too, because there are some lenders that don't want initials on pages *unless* they specifically request it. JMO.

Reply by DellaCa on 10/3/05 7:02pm
Msg #68614

I sign for one company that asked me to have them intial or sign every page so I do if not aked to I do not.

Reply by PAW_Fl on 10/3/05 7:19pm
Msg #68619

Well then, do think that having them initial the page means they read and understood the page? What's the purpose of having them initial a stack of pages in which they don't read and comprehend?

Personally, I always tell the borrowers there is more paper in their package than I am reviewing with them. I show them the closing instructions and say they are in their package for their reading enjoyment during the next three days. I find having the borrowers simply initial every page that is passed before their eyes is meaningless and nothing more than 'busy work'. Only pages that have meaning should be initialed. This includes mortgages. I've noticed more and more of them are NOT requiring each page to be initialed. Which, to me is a good thing. Now, every page of the note is a different story, because there is something important that needs to be shown to the borrower on every page. (In most cases.)

Reply by DellaCa on 10/3/05 11:12pm
Msg #68668

I personally agree with you Paw but if the service says it is to be done than I do it or lose $$ its part of working for them. It is extra work I agree.

Reply by PAW_Fl on 10/4/05 8:06am
Msg #68707

Obviously, if there are instructions to get it done, we get it done. We don't make the rules, we just follow them.

Reply by NY_TaxLady on 10/3/05 11:36pm
Msg #68676

I have closed many loans and never had the borrow initial the closing instructions as they really don't pertain to them. Never had one come back in 5 years. Maybe it is something new and I probably won't until I am instructed to.