Posted by Linda_H/FL on 4/18/08 9:26am
Msg #243957

Anyone "in the know" ever hear of this?

A little history for reference....I had a signing scheduled for two weeks ago also involving a QC Deed (borrower buying out other two owners)...loan wasn't ready to close in time, or docs weren't ready, two owners being bought out were returning to NC the next morning, so per title request I went and had them sign the QC Deed - borrower could not be available then so we still need her signature on the QC Deed (split signing - no problem)...

Here's my question - and I've never heard of this but I admit I don't know it all...this borrower was told that by her LO that she was clear to close that weekend HOWEVER per a new regulation as of 4/1/08, lenders had ten days after the loan was clear to close to review/audit the loan to avoid the problems that resulted from the mortgage meltdown...has anyone heard of this new regulation? Or is the LO yanking her chain...TIA

Reply by PAW on 4/18/08 10:17am
Msg #243964

I have not heard of this nor have I received any notification from my lender about any "new" regulations.

I wonder if it is something that particular lender may be instituting, in which case there would have to be some type of disclosure about it.

Reply by Linda_H/FL on 4/18/08 10:25am
Msg #243966

That's what I was thinking...and I wonder how they manage to keep her rate locked ... I feel so sorry for this lady...she's at the end of her rope with this bank...

Reply by Pat/IL on 4/18/08 10:38am
Msg #243969

I have not heard of any new regulation either. Maybe it's a Florida thing. But even if it is, it doesn't make any sense. That's what they're supposed to be doing in order to ARRIVE at 'clear to close'.

Maybe it's just a particular lender extending rate lock for those files that they cannot process on time. Purely speculation on my part. Yesterday, a mortgage broker lamented to me about one of the large lenders admitting that they could not process most loans within the time frame of the rate lock agreement.

Reply by Becca_FL on 4/18/08 8:19pm
Msg #244060

Re: Anyone "in the know" ever hear of this? Linda...

A "clear to close" means that the lender's underwriter or underwriting department has cleared the file to close. Now, an executed document package still does not constitute a "closed" loan from the lender's prospective and the lender does have the right to "re-qualify" the loan after signing...as we are fully aware from disclosures seen in previous packages. Does Delta funding ring a bell?

I haven't heard or seen this down my way, Linda, but would love to know the name of the lender. It could shed some light on the subject knowing how certain lenders can be and I may be able to help you find answers. Besides, I'm just a curious sort looking for answers.

Reply by Linda_H/FL on 4/18/08 9:21pm
Msg #244073

Ah phooey..you're just nosey...check your P/M...<G> n/m

Reply by MichiganAl on 4/18/08 10:42pm
Msg #244083

Sounds like something internal

I closed on my home purchase last year. Five days after we closed, the t.c. was calling me asking for more information and income proof. I'm like "huh?" I'm in house, everything's been disbursed. I know of no specific regulation. I'll bet it's just that lenders auditing guidelines. Those l.o.s, they sure can spin some yarns.