Posted by DianeCipa on 11/21/07 7:10pm
Msg #222364

uniform closing instructions

If you have some time over the holiday weekend, the uniform closing instructions are out on the web in draft form. They contain significant definitions which you will want to read. Here are a few:

“Close” or “Closing” or any derivative of either means: (i) procuring signatures, (ii) the Process of collecting and disbursing funds, and (iii) satisfying any conditions required to achieve Completion of Closing in connection with the Loan.

“Closing Employee” means the individual employed by Signing Agent or Settlement Agent who is directly responsible for supervising the Signing of the Loan Documents and who is present at the Signing for the purpose of procuring Borrower’s signature on Loan Documents.

Settlement Agent shall not designate as a Signing Agent Lender, any real estate agent or broker involved in the transaction, or Mortgage Broker, or any of their employees.

Reply by NCLisa on 11/21/07 8:07pm
Msg #222368

Who thinks this paragraph will ever happen?

F.3 Loan Document Review.
If Lender has not provided Borrower with copies of the Loan Documents and Lender’s contact information at least one Business Day before the scheduled Signing, then the Signing must be postponed until this condition is met.

Reply by jba/fl on 11/21/07 8:54pm
Msg #222371

I think it should - will cut cancellations. n/m

Reply by LCS_CA on 11/21/07 11:27pm
Msg #222389

There is so much more to these instructions... I have been keeping an eye on the various drafts for the past year or so. The California Escrow Association believes these will come into play in 2008. They also provide for entries in the notary's journal that are not required in the California Handbook. Diane, do you think these instructions will be embraced by the lending community?

Reply by DianeCipa on 11/22/07 7:15am
Msg #222414

I think lenders who do business across state lines would be well served to adopt uniform closing instructions as it will makes their life so much easier.

Lenders on the whole do take their lead from FNMA, FHLMC, FHA and VA. If these agencies give their blessing to, or adopt as a requirement, the instructions in their final form, they will become industry standard. That's how we got the 1003.

Lenders also take their lead from their software providers who are likely to use the standard instructions, if adopted.

So, yes, I think these instructions in their final form will be embraced by the lending community.

It would be a good idea to make sure everyone is looking at them now and raising issues because you don't want a lot of work going into finalizing form then having large segments of the industry cry foul later and stop the implementation. Talking now is better than talking later.

This draft is full of great new ideas. There are some issues not addressed or too loosely defined for my taste, but I'll send a letter [which will be posted on Radical] and hope they read it.

I think the winners in this draft are signing agents because you are recognized and given a place at the table. My big question is how states will deal with the new definitions. The intent of the instructions is clear - that they want to standardize procedures. Whether and to what extent states engage and embrace new ideas is an open question.

Reply by MichiganAl on 11/21/07 11:28pm
Msg #222390

Cool, we get new titles

We'll now be "Closing Employees." Also, we can claim to be document "supervisors." This'll look really good on my business cards.

Now if they could just pick a uniform pen color for every closing, I'd be one happy document supervisor.

Reply by Lee/AR on 11/22/07 6:24am
Msg #222409

Independent Contractor Closing Employees? Oxymoron. LOL n/m

Reply by DianeCipa on 11/22/07 7:24am
Msg #222416

Re: Independent Contractor Closing Employees? Oxymoron. LOL

I'm reading it that the SIGNING AGENT may be independent of the SETTLEMENT AGENT. The CLOSING EMPLOYEE is the employee of either the SIGNING AGENT or SETTLEMENT AGENT.

Let's say you are a one person shop, a sole proprietorship with no employees, acting as a SIGNING AGENT. You are also the CLOSING EMPLOYEE on your closings.

If you expand and hire an employee [a two person shop]who is also capable of performing closings, then for those closings, you [your company] are the SIGNING AGENT and your employee closer is the CLOSING EMPLOYEE on those closings.

The CLOSING EMPLOYEE is the person sitting at the table procuring signatures whether they work for the SIGNING AGENT or the SETTLEMENT AGENT.

Interesting to note who CAN'T be a CLOSING EMPLOYEE - the lender, the mortgage broker, the real estate agent. Now THERE'S a whammy on the affiliated business world.