Posted by parkerc/ME on 2/3/09 9:38am
Msg #276376

Emailing HUD to BO in advance?

I’m throwing this out there for feedback since I couldn’t find anything with Search. Lately there seems to be some breakdowns of communications between lenders and borrowers. Have had a number of recent signings where I go through the whole routine . . print 300+ pages, trip to BO, pull out the HUD, Note, Mortgage, and RTC and the first thing BO say is . .”The figures on this HUD are not what was sent to me”. So a no-sign, back to square one. Granted, we still get an acceptable reduced fee for no-sign, and then full fee upon redo, but is there some way we can email a copy of what WE receive for HUD (and maybe Note also, but the HUD seems to be the sign-breaker) to the BO before we show up on their doorstep? And maybe at least save us the trip? I would presume we’d have to get the SS or TC permission to do this and would obviously only apply if we get a pie-in-the-sky assignment where we receive docs the day before (and BO has email service). I haven’t done this but it would sure lower the stress factor. Any thoughts?

Reply by pan/nd on 2/3/09 9:57am
Msg #276378

Or you could call the borrower in advance..with the info off the HUD.

This has been talked about before on this board but not for awhile.

As far as calling or e-mailing is concerned......

some are for it....and some are against it...and I'm with you.

Reply by JanetLA on 2/3/09 10:00am
Msg #276379

I would not do it because

I could not be 100% sure that the correct party is on the phone- No real way to identify someone on the phone. That is just me and I have no legal basis for this opinion. I might be overly cautious but better safe than sorry for me. Best of luck to you.

Reply by BobbiCT on 2/3/09 10:03am
Msg #276380

Email HUD to BO - NEVER for me ...

Unless the company that hired me, I would NEVER email the HUD and/or Note to a Borrower in advance. Not my job, not my responsibility. I would suggest to Borrower the s/he may want to go over figures with his/her loan officer BEFORE I arrive for the appointment "as I am not an employee of your lender and, therefore, do no know how your lender arrived at those figures." (can substitute "escrow agent" or "title insurance company" for lender)

Personal procedure. I do not want to get in the middle of "he said / she said / they told me / my estimate was" discussions and arguments because I was the person that opened up that discussion; i.e., the borrower calls ME because s/he cannot reach lender/escrow/title and I emailed the HUD ... which can and WILL lead a borrower to ask ME TO EMAIL the WHOLE package before he signs - after all, I have the package, I send the HUD and Note, why not the rest of of package in advance. Whether lender/title reviews HUD and Note with customer before the signing is between them and customer, not me.

Reply by Art_PA on 2/3/09 10:18am
Msg #276382

Re: Email HUD to BO - NEVER for me ...

Right. Those who make this job more than it is are not getting paid for the extra effort. There is always the chance that it will scuttle the closing if there is something on the HUD that the borrower does not understand and the LO is not available before the closing. For example the payoff is always higher than the loan balance on the last statement.

There was an exception when there was a specific problem and the borrower said not to come. I sent the HUD in advance to show that the issue was resolved. This was a smart very suspicious borrower who had a bad experience with the LO and did not trust the company. Once he saw the numbers he was happy.

Reply by Carole Breckbill on 2/3/09 2:42pm
Msg #276415

Boy, talk about opening up a can of worms! n/m

Reply by NewPhoenix on 2/3/09 10:06am
Msg #276381

Emailing HUD to BO in advance?

On those with "CASH (X FROM ) BORROWER" at the very least I will call and ask "You are expecting to have a check ready, right?" and usually they say "Oh yes, we have a certified check here for $$$" and then I allow myself to exhale and go out on the assignment.

Reply by Art_PA on 2/3/09 10:33am
Msg #276384

It is a better practice to check with the LO or title co to ask if the borrower is aware of the funds due & the amount. This is also the lender's job. Asking the borrower directly may cause a cancellation if the borrower is alarmed. Often the numbers are revised or the loan redrawn to change the funds due. This saves dealing with an upset borrower and wasting your time.

Reply by cdoty_IL on 2/3/09 10:39am
Msg #276388

The only time I go over the details on the HUD is when I am expected to pick up funds. I want to make sure the borrower is aware of this and that they have notice to get a certified check if necessary. A few times the borrower has been suprised by the amount and the HUD has been revised. But, even in this case I would not email the HUD....I would contact whom ever hired me and let them know that the Borrower is requesting to see it and let them handle getting the HUD to the borrower.

Reply by ME/NJ on 2/3/09 12:26pm
Msg #276397

Not our Job.. HUD can change many times

The HUD can change between when docs are printed till the final hours before the RTC date. It should be handled between the BO, LO and TC.. that is it. Not our job to worry about the numbers and if they are right or wrong.

A good LO will go over everything prior to getting to the closing..lol (about 85% of my closings this happens)

The HUD has changed a few times even after I am done with my work. Just part of the job, you email or go over the numbers with the BO before the closing, you just cause more problems.

Reply by Joan_OH on 2/3/09 2:12pm
Msg #276402

Never on a Refi. If funds are due, I call the title company and ask if the buyer has been informed.

Always on a purchase - with title company blessing. I just want to make sure we are all on the same page and the correct check will be at closing made out to the appropriate party. So many times, the last $$$ number they were given was 3 revisions ago and some Real Estate Agents think a Money Order is the same as a cashiers check - NOT - I cannot accept Money Orders for most closings. Additionally, the buyer will sometimes catch mistakes that everyone else missed because they only concentrated on their part of of the deal (Is my commission correct???? - who cares the earnest money isn't there - why bother to even look. Let the notary deal with it during the closing and what a time waster that is making everyone look bad - including me!). Sometimes reviewing the HUD creates questions that they can ask their loan officer prior to closing and I advise them to.

Again - I do this with my title company's blessings. The 5 minutes I spend on this make my closings a breeze because everything is right when I get there - most of the time.

Joan-OH

Reply by parkerc/ME on 2/3/09 3:22pm
Msg #276424

Good points from everyone. Of course I confirm the c/check amount BO has before arriving when there's CASH FM BO due, but when no cash due and HUD I bring doesn't agree with what they were provided, they can't reach their LO (on a Sat) and even the RTC doesn't appease them, it's always frustrating to end up with a no-sign. Ah, well, just one of the glitches we have to deal with, so will suck it up and do so. (Could l have a little cheese with my whine??) Sure prefer the o/n pkgs to BO instead! Thanks for all your feedback.

Reply by Joan_OH on 2/3/09 3:34pm
Msg #276427

If in a refi loan situation, when I call to confirm, I will ask the buyer if they talked to their loan officer today. If not, I suggest it's always a good idea to talk to the LO the day of closing to go over the final terms and mention it's better to go over them now than discover a potential problem in the evening or weekend when we are not likely to get a hold of anyone. I try to at least give them the opportunity to head off problems before I get there.

I'm just not seeing too many issues on refi's these days. Docs & HUDs are much cleaner than they were 2, 3, or 4 years ago. Maybe it's because the underwriting is tougher?

Joan-OH

Reply by MistarellaFL on 2/3/09 3:38pm
Msg #276428

Ditto that Joan.
It really isn't our responsibility to take on the terms, so to head it off, I do like you, and advise the brw to speak to their LO to go over terms in advance of the signing.
It works most of the time.

Reply by Doris_CO on 2/3/09 5:51pm
Msg #276446

I only call the borrower if there is a check due at closing. But, I just had a loan cancel at the table because the closing fees were a couple thousand dollars more and the loan amount was $5,000.00 more then they were told by the loan officer. Sometimes these loan officers really don't know what the final closing costs will be after title is finished adding their fees. They give what they think the fees will be and hope for the best.