Posted by Karen/OK on 12/22/07 10:22am
Msg #227385

Copies of docs to borrowers

Reading "Some borrowers are worse than LOs" brings to mind a topic I am wrestling with. Why don't the LO/TCs send a copy of the docs to the borrower ahead of time so that they don't have to read every doc before signing it while I am there? This is especially true with RMs. Bless their hearts; I wouldn't sign without reading, either. I know about recission but most of the borrowers I have dealt with don't care...they are not going to sign without reading the documents. If the docs can be e-mailed or over-nighted to me, why not to the borrowers? It would be such a great help to all!

Reply by SharonMN on 12/22/07 10:31am
Msg #227387

They CAN and sometimes DO give the borrowers copies ahead of time (assuming the docs are ready before the appointment!) I have insisted on this for my own personal loans, as I know I am a "reader." When I encounter a reader like myself, I suggest that in the future they ask for docs ahead of time so they'll have time to go through them before the appointment.

Two problems with sending docs to the borrower, though - some lenders don't like to leave the paperwork in the borrower's hands as pages can go missing or even get changed, and then the lender has to compare the signed docs to make sure it's the same as what they sent. And if the borrower signs the copy YOU bring, a suspicious borrower will sometimes insist on comparing their copy to yours before signing, which can take as long as reading it in the first place.

Reply by Stamper_WI on 12/22/07 11:16am
Msg #227394

Copies to the borrowers 24 hrs before signing is in the works in proposed legislation. I once had a LO tell me they didn't like to send them ahead of time because the borrower has something in hand to show their competition for the loan. This may not be the mindset of all LO's but it definately was of this one

Reply by jba/fl on 12/22/07 11:20am
Msg #227397

"...borrower has something in hand to show their competition for the loan."

Well, if the LO is doing their job, the bor. has GFE to show competition (or silently compare) during neg. process. That is just a poor excuse for trying to pull the wool over bor. eyes.

Reply by PAW on 12/22/07 11:26am
Msg #227398

The proposed Uniform General Closing Instructions is not "legislation". It is a proposal by a group of industry organizations for the mortgage industry. Lenders, settlement companies, title companies, etc. are not bound by those instructions. It's only a "suggested" way to do business. (Heck, lots of title companies have no idea this is even going on!)

As for emailing docs, especially RM's, this would be a real big problem. I estimate that at least 75% of the borrowers that I've signed RM's with, have no internet access, no email, and don't even want it. But, the RMC (Reverse Mortgage Counselor) of the lender or broker, should go over each document with the borrower(s) prior to the closing. That way, there would be nothing new at the table. Many of the Wells Fargo RMs in this area do this and it makes the signing go so much better.

NFRES does send their docs to the borrower, usually two or more days ahead of the signing. When I confirm my appointment with the borrower, I encourage them to open and read the BORROWERS COPY and not to open the NOTARY envelope. Most do, but some don't. Navy Federal loans, though, are not difficult and the borrowers are pretty in tune with the loan.

Reply by DianeCipa on 12/22/07 11:33am
Msg #227403

I agree and that's our experience, too. This is one of the big benefits with UCI. Wells Fargo RM program is wonderful - well done.

Reply by Stamper_WI on 12/22/07 12:23pm
Msg #227413

I was thinking of the proposed RESPA Rule changes by the Feds. Some articles call it a proposed amendment to RESPA. I thought I saw the 24 rule in one of the articles. I'll try to find the article.