Posted by Sha/CA on 11/1/12 1:05pm
Msg #441633

Checks back to borrowers from loan officers?

I must be mistaken thinking this is illegal.

Twice in the last month, I have witnessed two different loan officers state to their borrower clients that they will give them a check after the close of escrow to pay for the closing costs the borrower had to pay. The LO told the borrower up front that there would be no closing costs and the borrowers called them on it during the signing process.

What do you think? If you think it is illegal, what would you do?

Reply by HSH/WA on 11/1/12 4:12pm
Msg #441688

What they do after we're done is OK by me.

Reply by doglover/CA on 11/1/12 11:03pm
Msg #441766

After the borrowers are through signing the papers, our job is basically done and everything else is between the borrower and lender.

Reply by GOLDGIRL/CA on 11/1/12 6:48pm
Msg #441726

This has happened a few times in my presence, too. I'm sure it's illegal because it's an exchange of funds outside of escrow. If they can do this, then why not skip escrow altogether and just hand funds over at the table (or under the table). In any case, I wouldn't and didn't do anything. What's to do? Besides, I got other fish to fry - responding to illegal requests I notarize docs with no signers present, backdate, etc. ....

Reply by dgd/CA on 11/1/12 9:04pm
Msg #441760

Couldn't agree with you more... n/m