Posted by Cris_AR on 3/27/10 5:35am
Msg #329194

LO Promises to Borrowers

I was in a situation where the LO promised the BO that he would recieve 1500.00 within 3 days and was questioned why it was not on the HUD. I finally determined it was an escrow refund and the Borrower wanted me to promise they would get it in 3 days, I did not. I explained that that was between LO and BO as I just could not promise. Made call to LO and Borrowers were still upset that I could not promise.

Am I just naive or could these promises be sent in writing at closing? Or even something showing the escrow refund from the prior separated out?

Reply by Prosperity on 3/27/10 5:44am
Msg #329195

I Agree

Momma always said, "Never make a promise you can't keep". Smartest lady I've ever known.

Reply by PAW on 3/27/10 7:37am
Msg #329200

First, neither the LO or the SA should make any promise of delivery on something they have no control over. Second, if the $1500 was for the escrow refund from their old mortgage, chances are they will not get it for up to 45 days because mortgage companies typically wait 30 days after payoff for all fees and payments to be completed. Therefore, the (old) mortgage company may not issue a refund until after the 30-day period expires. If the old mortgage company is the same as the new mortgage company, then it may indeed be possible, but highly unlikely.

Reply by Linda_H/FL on 3/27/10 7:42am
Msg #329201

If it truly WAS an escrow refund, chances are they're not going to see it in 3 days anyway - they'll see it when their previous lender receives and posts the payoff and prepares the satisfaction (example, Wells Fargo takes upwards of 60 days). The amount of their escrow refund should be stated in the payoff letter from that lender, a copy of which may or may not have been in the package. If a copy is not provided it's up to the borrowers to know how much they have there (which is usually stated on their monthly statement) or they should be contacting their prior lender to find out - that's between them and their prior lender.

It's not your job to make ANY promises to borrowers outside of "Barring accidents, I promise to drop this package at FedEx"...after that your job is done. Your borrowers just didn't understand your role in the process

Reply by CF on 3/27/10 8:58am
Msg #329203

You do not make any promises to borrowers. They only thing that you can agree with, not promise, is what is in black and while. Additionally, an escrow refund take about 4-6 as previously stated. The LO was blowing smoke....and doing what they do best.

You need to CLEARLY explain your role when things come up such as this. I am a contractor for the title company. I only know the information that is in black and while. I do not know your loan officer and I do not know any information, except, what is on these pages. If the need be go on to explain your role as an unbiased representative...that is why you are there....so there is no conflict of interest for the lender.

The only thing that I have ever promised is that I will drop the package. I had a borrower with funds due of over $100K and they wanted me to agree in writing that I would make sure that check made it title in another state....no can do. I am only agree that I will drop the package...whatever happens to your check after that has nothing to do with me.

Reply by Cris_AR on 3/27/10 9:12am
Msg #329205

Thanks for your responses.
Sometimes it is difficult to explain without mentioning if in fact the LO stated that, it is not happening in 3 days period without being unprofessional.
I did explain my role and he did not seem to get it, he thought I should be able to concur with everything the LO states when I have no clue what was promised.

I wish the LO would understand that I live in this town, my honesty and integrity are important to me.

Again thanks, it is nice to communicate with people who understand.

Reply by JanetK_CA on 3/28/10 3:20am
Msg #329293

Re: LO Promises to Borrowers - Classic

Sounds like a LO just interested in his commission and wanting you to help him sell the loan or help make sure they sign. We've all run into those types if we've been in this business long enough. I must say, though, that I've been very gratified with the professionalism of the loan officers that I've met recently. Maybe it's just luck, but I'd like to think that lots of the low-lifes have left the business. We can only hope...