Posted by Lake/NWI on 3/19/07 1:22am
Msg #180529

BORROWER'S COPY

I have a friend who always prints the borrower's set on LETTER-sized paper and the original, of course, on legal. Is this ok to do?

Reply by Ernest__CT on 3/19/07 5:37am
Msg #180538

It is probably unwise. Very often I've been happy that I could swap the borrowers' and lender's copies because the borrower(s) goofed when signing / dating / filling out the lender's copy....

Reply by Julie/MI on 3/19/07 6:28am
Msg #180541

As a consumer, I would rather have my copies reduced to fit in a file cabinet; as a closer, as Ernest mentioned, it's nice to be able to swap out one of the originals from the borrower's copies in the event they make a mistake. You cannot swap out a reduced size doc on recordable instruments because the font will be too small.

I've closed thousands of loans and never ever reduce the borrower's copies, there is absolutely no advantage for me.

Reply by Sharon Taylor on 3/19/07 6:31am
Msg #180543

Always print both on correct size

Ernest is right - borrowers will goof on a document, no matter how closely you watch them and no matter what you tell them beforehand, so it's wonderful to have a duplicate copy of the doc on the right size paper in their package to switch out. The bad copy goes in their package, of course, so they still have a complete set. Another reason is that there is a lot of "fine print" on these docs, and if the borrower's set has been shrunk down to letter size, and the wording is not readable without a magnifying glass, are you then providing them with a complete set of the docs within the letter of the law? Not a question I would want to have to answer in a court of law before a smart lawyer. I personally would not be happy at being provided with a set of shrunken docs where the print is extremely difficult if not impossible to read - and borrowers do indeed refer to their loan docs after the closing. It may be right after the closing when they have time to go over them or when someone asks them about the loan or when they refinance again years later - but they will sooner or later want to read at least part of them.