Posted by Leonard Texas Mobile Notary Services on 6/2/07 7:22am
Msg #193328

Closing cycles

Has anyone else noticed that during the month more closings take place the last week of the month vs the first week?

Also in May I attended a hearing in Washington DC concerning predatory lending. It was very interesting and concerning at the sametime. I think shortly we will see fewer lending companies and more paperwork.

Reply by PAW on 6/2/07 7:34am
Msg #193329

There is always a big push at the end of the month to get deals closed. The two major reasons are: (1) meeting sales goals and lender/title income goals on a monthly basis [including the broker/LO commissions]; and (2) keeping prepaid [current months] interest at a minimum, minimizing closing costs to the borrower.

Some companies use a mid-month cut-off cycle, but most use a month end. You may also find a push at the fiscal year end of some lenders.

Reply by LJ on 6/2/07 8:46am
Msg #193335

I did 2 on Thursday and both borrowers asked me why it took so long to close. Everything had been ready to go since the 15th of the month and they waited till the last day of the month to close. The borrowers were kind of aggitated at the whole process. They wanted this done and over with and they drag it on. Both people said absolutely nothing changed since the 15th. This was 2 different lenders, tc etc.

Reply by Linda_H/FL on 6/2/07 9:50am
Msg #193343

Odd - I got the same story from two of my borrowers last week - "we've been trying to get this done for two weeks"..

Reply by ReneeK_MI on 6/2/07 2:09pm
Msg #193367

"Everything's ready to go ..." Famous last words. I suppose it all depends on how you define "everything" and "ready to go"? I think it's in the same chapter as "I'll call you in the morning" and "I mailed that yesterday." OH - and "Trust me, it'll be FINE..."

Reply by JanetK_CA on 6/2/07 7:48pm
Msg #193388

Classic... LOL! n/m

Reply by Sharon Taylor on 6/2/07 9:02am
Msg #193337

I closed 3 on May 31

which I thought was unusual since most lenders are trying to get closings done so that the RTC will expire the day before the last day of the month. I figured it was probably just loan officers trying to squeeze one more closing onto their totals for the month.

Reply by LJ on 6/2/07 12:57pm
Msg #193364

Re: I closed 3 on May 31

I guess there is a method to their madness.

Reply by PAW on 6/2/07 4:55pm
Msg #193374

Re: I closed 3 on May 31

Some lenders will extend a courtesy to the borrowers for 4 or 5 days into the following month. That is, there won't be any additional "penalty" nor prepayment of a whole months interest. Of course, the first payment may be due the first of the next month instead of "skipping a month" or the payment may not be due until the 10th or 15th. Also, some lenders will allow commissions to be counted based on the signing date rather than the actual date the file closed.