Posted by rollingga on 10/22/05 4:14pm
Msg #71917

post dated checks

I've had two closings needing funds to close. The mortgage co has authorized the borrowers to use post dated checks (dated after the recission date) to fund. This appears to be against the RESPA rules. Any opinions on this?
Next thing-Any one have experience with MIC/Watermark-they do not give out the borrowers phone numbers and will not let you contact them even for directions-Then docs are sent with borrowers having to come up with funds. Seems fishy to me. Any experiences out there? Thanks.

Reply by PAW_Fl on 10/22/05 6:31pm
Msg #71932

>>> The mortgage co has authorized the borrowers to use post dated checks (dated after the recission date) to fund. This appears to be against the RESPA rules. Any opinions on this? <<<

What part of RESPA makes you think that post dated checks from the borrower is against the rules?

Reply by wendy_wa on 10/22/05 6:59pm
Msg #71939

Watermark regularly has borrowers post date checks - especially for FHA or VA streamlines, as is the norm - to establish their new impound account for which the borrower is reimbursed by the previous lender, generally scheduled before borrowers check would be processed. Since it is, in most cased, not allowed for one lender to transfer the impound account to another (this of course only applies to refinance as opposed to one bank purchasing the servicing of a loan).