Posted by Anonymous on 1/20/06 11:30am
Msg #89840

HELP PLEASE

Had a frantic call from a ss last night asking whether I could do a closing for them this A.M. with overnighted docs...... this is a major rush etc...... I get the package this morn @10:15 and rush 30 miles to get to client by 11:00am (they are going out of town) We open package and theres no HUD anywhere in my docs or Brws either. SS tells me that the Borrowers Estimated Closing Statment will function as the Hud. Client wont sign because of the word "estimated "and says he's never refi'd without a Hud. I agree with him. (I've never seen this, have any of you?) Sounds to me like they left the Hud out last night in the mad rush to get to Fedex at the last minute.

Reply by BetsyMI on 1/20/06 11:32am
Msg #89841

I can understand what happened, but what is your question?

Reply by janCA on 1/20/06 11:38am
Msg #89844

In CA it is done all the time. Most of my signings are done without a HUD and just the estimated statement.

Reply by Charm_AL on 1/20/06 11:38am
Msg #89843

In everything I've done there's always been a HUD. If they didn't e-m it to you, then I wouldn't worry over the refusal to sign. What did the TC say when you reported that he didn't sign? I wouldn't sign either with an 'estimated, but there was the RTC wasn't there?
Maybe he would have signed knowing that the TC could have gotten the HUD to him during the next few days to sign.

Reply by AmandaCA on 1/20/06 11:53am
Msg #89852

The HUD (in CA anyhow) at the signing, always has the word ESTIMATE on it. The actual final always comes at the time of disbursements, as payoffs etc can change in the time it takes to disburse. However the estimated HUD you get at the signing is as close to the final as you will get. I have done several signings without a HUD in the pkg. The lender usually says they will fax it to the B. I have not had a B yet have a problem with the word estimate on a HUD.

Reply by PAW_Fl on 1/20/06 12:22pm
Msg #89866

Since CA is an escrow funding state, estimated HUDs at the signing is commonplace. However, in table funding states, it is standard practice to have the "final" HUD at the signing, not after disbursement. Quite often, when dealing with CA lenders and title companies, this issue always comes up. I have had borrowers absolutely refuse to sign any documents until they were presented with the "final" HUD. Even after explaining that a "final" HUD is still subject to change at time of disbursements, if any payoffs or other fees changed.

Reply by HDW_TN37323 on 1/20/06 12:28pm
Msg #89867

PAW,
Had one last night for a company from CA. and ran into this same situation. Borrower called LO and was satisfied with answers and signed. It is good to have you back with your explanations/definitions and general education for everyone. Thanks for the input.

Reply by John_NorCal on 1/20/06 11:55am
Msg #89853

I guess in CA people aren't so put off by estimated closing costs. I always explain to them that closing costs are never exact until the day the loan closes. There may be adjustments due to per diem interest charges, etc. They really shouldn't be put off by that, besides if this is a refi, they still have their 3 day RTC.

Reply by Joshua Basil on 1/20/06 12:06pm
Msg #89860

I'm not sure whom the lender was, however I have closed over 250 loans for GMAC dba DiTech
and I know there has never been more than an Estimated Settlement Statement in any of their packages. The 3 day interest can change as well as any payments on additional disbursements that may be made. I have had people choose to not sign for some random reasons(would not sign request for transcript of tax return, did not feel lender needed to know their income) however I have never come across a borrower here in California whom would not sign due to the Estimated Settlement Statement. Furthermore by you agreeing with the borrowers, you where no longer an impartial witness, and as a notary you should not sway their opinion one way or another. If you are planning on closing loans in Ca. you should get used to this for it is farley common.

Reply by Giselle_CA on 1/20/06 12:46pm
Msg #89869

To have the "Borrowers Estimated Closing Statment" is very common. If there is a problem and the borrowers won't sign, I would try and explain the RTC. They usually sign after that.

Reply by PAW_Fl on 1/20/06 12:55pm
Msg #89871

But the RTC doesn't help when the "final" HUD isn't prepared until after funding. In table funding states, the HUD has to be correct and approved before funding. We're used to the HUD showing what funds are _going to be disbursed_ at funding, not just what was disbursed.

Reply by Giselle_CA on 1/20/06 1:01pm
Msg #89872

That's right. I was speaking for CA only. I should have said that.