Posted by desktopfull on 12/8/11 11:41am
Msg #406035

Does anyone know why this is included in closing package?

Borrower's loan is approved, docs sent out and included is a "Statement of Information" for the borrower to fill out. This is 4 pages of the borrower filling out their complete background (work history, residences, personal info). It takes many borrower's 30 minutes to an hour to fill out the information requested on this form, and all complain that they had already supplied the info when they applied for the loan. Many can't remember what they did last week and now this form has gone from the "last 10 years" to the "last 20 years." I have to sit there while the borrower pulls out divorce papers, dig for previous addresses, etc. because they can't remember all of the dates. This just seems like a waste of everyone's time since the loan has already been approved and the borrower has been checked out from initial application.

Reply by John/CT on 12/8/11 11:48am
Msg #406040

Some TC's supposedly require it. n/m

Reply by desktopfull on 12/8/11 11:50am
Msg #406042

Re: Some TC's supposedly require it.

Why? The TC isn't the lender or underwriter, they are merely the escrow agent.

Reply by Shoshana/AZ on 12/8/11 11:58am
Msg #406046

20 years??? OMG! n/m

Reply by desktopfull on 12/8/11 11:59am
Msg #406047

My thoughts exactly. n/m

Reply by Notarysigner on 12/8/11 12:02pm
Msg #406048

My understanding is it is a homeland security form. Ours is only one page but the borrowers don't like it for sure.
Up until this year, there was a separate envelope that was overnighted to the borrower. They had to complete that form, patriot Act form, and photo I.D. We were instructed to put that info in the envelope, seal it and then enclose it with the loan Docs.

Reply by Calnotary on 12/8/11 12:12pm
Msg #406051

This is much more for Title Insurance, they might be more than 2 John Smith and Jane Smith but they will be no other persons with the same jobs,addresses, children in the past 10 years.

Reply by desktopfull on 12/8/11 12:15pm
Msg #406053

Title Insurance covers the property searches and liens not the borrower's. Their background search is of the property not the people.

Reply by Notarysigner on 12/8/11 12:25pm
Msg #406056

Agree...also included in THAT envelope I mentioned was

usually the Subordination Agreement!

Reply by Linda Juenger on 12/8/11 12:45pm
Msg #406058

Desk, I had that same 4pg form just last night. Thankfully

the borrowers have lived in the same home for 22 years and Mr has worked at the same job for 20 years and the wife for 18. We left it at that. Why don't they get that info ahead of time is beyond me. Next time I see it, I am asking for more money. Even with my borrowers being fairly simple to fill out, it still took an additional 15 minutes for just that.

Reply by jba/fl on 12/8/11 1:31pm
Msg #406060

This must be one of the government's reduction in paper

requirements that is met.....wow.

Reply by Larry/IL on 12/8/11 2:11pm
Msg #406064

Re: This must be one of the government's reduction in paper

I have seen a similar document in some of the closing I do. It is ridiculous and many times does take upwards of a half hour for the borrowers to fill out. It is not a required document by the state, federal government or even homeland security. If it was, every loan would have them. It like all the other loans we see closed, some documents are required and some are just there because some lender or title companie's legal department says they need them.

I have been seeing a lot more loans that are more than 150 pages with some approaching 200. On the other hand most of the Chase and Wells Fargo loans seem to be in the 75 - 90 page range. I really love the ING loans about 48 pages to do a refinance. If ING can do a refi with appox. 50 pages it tells me that frivolous documents usually out number the required ones.

I have started calling the hiring parties back asking for more money when there are large packages, documents that take 30 minutes to fill out and always appraisals. Just the other day I bumped the rate for a 50 page appraisal. It brought the loan to 210 pages. The hiring individual said they never know what is going to come through and I should always feel free to call and ask for a bump in rate.

Reply by tony1994CT on 12/8/11 4:56pm
Msg #406083

Re: This must be one of the government's reduction in paper

We do not close too many ING loans

Reply by MichaelB/IL on 12/8/11 2:01pm
Msg #406062

It is so the TC can ensure clear title. When a title search is performed they also perform a name search, and folks with common names will often pull up judgements, tax liens, etc... This form is typically called a Personal Information Affidavit, and the extensive personal information (for previous addresses and employers this is way more than the lender requires) will protect the title company from risk that a claim can be made against the property, that would supersede the lender's lien, and put the title company at additional risk for insuring the transaction.

I may be naive, but I chuck up the ones that need this to a part of the business. Some closings take longer than others based on the borrower. Some just sign and it's done in 20 minutes. Others want to read every word, or have dozens of questions for the LO/Lender, and can take much longer. To me they seem to even out in the end.

Reply by Lee/AR on 12/8/11 4:07pm
Msg #406081

Agree with Mike n/m

Reply by Victoria_NJ on 12/9/11 6:23pm
Msg #406175

NOT a TC requirement

Being a Supreme Title Geek, the docs you are describing are NOT title agency or title underwriter requirements.

The title insurer requires a Affidavit of Title to be executed at closing (usually 1-2 pages with very little to actually fill out), that confirms the borrowers names, property location, lender/buyer (if selling) info, marital status, child support status, etc.

And, typically title docs include an ID Affidavit, a Waiver of Title Insurance (if a refi), maybe a tax escrow waiver and a couple other items.

We insure the history of the property and current and prior owner's acts. We can only go by the County/Municipal/State records as to that history.

What you are describing is something coming from the Lender. If they are sending you that type of document that is time and labor intensive, I'd suggest adding another $25 to your closing fee for excessive time at closing.

A "normal" refi should only take about 30-45 minutes to close.

Reply by JanetK_CA on 12/10/11 4:51am
Msg #406208

Re: NOT a TC requirement

I see these in the majority of the packages I get - and they come from escrow/title, NOT the lender. It's probably a California thing. I've also seen a page (on a rare occasion) from the title co with an explanation from the borrower as to why they are asking for it - and it relates to issues about confusing people with same or similar names, etc. Whether or not that's a load of BS, I have no idea.

Bottom line... one thing I've learned after 9 years and a few thousand signings is that there are very few absolutes in this business. As I mentioned to someone else recently, what one company insists upon is considered incorrect by another.

As for the time... well, add a property in and out of a trust, with the accompanying Grant Deeds and Certification of Trust and it could add another 10 - 30 minutes depending on how savvy - or not - the borrowers are. (I did one last night where the tc specifically requested that the BO complete the accompanying Preliminary Change of Ownership Report - specific to my county - and it took forever. BOs don't have a clue about these docs but the tc doesn't want the liability of completing it for them. Fun!?)

Reply by CopperheadVA on 12/8/11 2:22pm
Msg #406067

I rarely see those - haven't seen one in years n/m

Reply by BobbiCT on 12/8/11 2:25pm
Msg #406068

20 yr address history, marriage and relative contacts FOR

This is for the LENDER's file, which can later be used to cross-check credit report information, undisclosed debt, and the VERY NASTY I know how to find your friends & family to call them and get your NEW contact information when you aren't making your loan payments on time.

Intelligent borrowers do NOT like this form ... they fill it out with very vague answers. Not my call; NOT MY JOB to instruct people on how to complete this form.

Reply by Tish/CA on 12/8/11 2:37pm
Msg #406069

Re: 20 yr address history, marriage and relative contacts FOR

I see these Statement of Information forms all the time in loan packages. They can be one to two pages and 90% of the time irritate the borrower(s) and take up a lot of extra time trying to recall old street addresses and dates of emploment history. Whatever their purpose, these should be sent to the borrower before we ever arrive on their doorstep.

Reply by Notarysigner on 12/8/11 2:44pm
Msg #406071

Every Loan I every done has it in package..(Ca) n/m

Reply by Tish/CA on 12/8/11 2:53pm
Msg #406072

Re: Every Loan I every done has it in package..(Ca)

I see them about half the time and I'm in Cali too.

Reply by Susan Fischer on 12/8/11 5:32pm
Msg #406088

My threory is that it's data-mining. Most borrowers will

stop after the first block of info - and all have refused the form that wants the names, addys, ph, birth dates of children, 20 years of history, county where married, etc.

I never pushed it, and if I was running late, or they wanted to start digging for records, I just offered to let them send it in at their leisure.

Never heard a bleedin' word from any lender, TC, SS, or LO.

jmnsho.

Reply by janCA on 12/8/11 6:13pm
Msg #406094

Re: My threory is that it's data-mining. Most borrowers will

Most loan packages in CA have this form, but over the years, it seems it has gotten smaller. And I've only had forms that want the last ten years, not twenty. I have the borrowers fill this out at the end of the signing while I'm going back through the loan docs checking for any signature, date or initial I may have missed. Many times they finish before I do. Takes about 10 mins.

Reply by jnew on 12/9/11 10:39am
Msg #406145

It is not needed for title insurance. All of the name information is easily available from the public records. If a same name is found the TC will have a judgment affidavit clarifying the identity so the possible judgment can be cleared from title. This statement is not a sworn statement, so I don't see what its actual purpose is.