Posted by NJ_Notary on 2/22/06 10:17pm
Msg #99129
Non Essential ?, but more of a FMOK ?
Ok guys, just a FMOK (for my own knowledge) who here is in a "wet-funding" state? Just curious, since I have always been under the impression there is always the 3 day rtc in all states. I was wrong  and feeling annoyed since I dont like to know wrong things lol.
Ok in light of that if thats the only thing thats upseting well its not that bad and things are pretty good 
Everyone have a wonderful evening and happy signing tomorrow.
PS
My thoughts and prayers are w/ Sylvia.
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Reply by ReneeK_MI on 2/23/06 4:18am
Msg #99155
Good news - you aren't exactly wrong ... just mixing apples and oranges a little. Wet-funding doesn't negate the Federally mandated RTC.
The primary difference in wet/dry funding states is in wet-funding, the Settlement Statement (or HUD1) that is signed is the final one, upon/by which the loan will fund on the date of disbursement. (Well ... that's not to say it can't be revised, corrected if in error, etc.) On purchases, or refi's that don't have a recission (2nd homes, investment prop, etc), it would be possible to disburse funds right then and there at closing.
In dry funding states, the borrower signs an ESTIMATED Settlement Statement at close, and the final one is issued when loan is ready to disburse. I'm not very familiar with this process, not sure what steps are followed to BE "ready to disburse", but it would still have to issue a final Settlement Statement, AND satisfy the recission period first. My understanding (and I could be wrong about this) is that funds are NOT disbursed right there at closing, even on purchase or refi's w/o recission period.
Maybe someone in CA or other dry-funding state could explain that? What steps are required to enable disbursement, and who's call is it? Title? Lender?
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