Posted by Yoli/CA on 11/3/12 2:24pm
Msg #442008

Re-draw due to zip code.

I've got a signing today that's a re-draw due to an incorrect zip code. Seems LPOA does not cover that. LPOA clearly states it does not cover correction of names, address, loan, dates, etc. I can understand not changing the terms of the loan or changing the borrowers names. But, isn't it supposed to be used for typos? If zip code is supposed to be, for example, 91330 and instead it's entered as 91003 and house street address is correct, wouldn't that be a typo? I'm just curious.

This is for a 2nd home (short sale) in Southern California, where originally signed. Borrowers live in Northern California, where we're signing today.

Found this interesting. Thought others might also.

Reply by bfd110_IN on 11/3/12 3:01pm
Msg #442009

means the processor didnt do his/her job. When ULDD came into place everything had to be uniform specifically appraisals. Before an appraisal or flood cert is ordered it should be checked against the USPS website. If that processor didnt do it, then all docs are off.
No reason the loan should get to the table with an incorrect zip code. The way the mortgage systems flow from processing to closing, there is never another input of zip codes.

Reply by JanetK_CA on 11/3/12 4:30pm
Msg #442012

Wow... That surprises me. Nearly all of the lender doc errors I see involve misspelled names or addresses. I don't know about the zip code issue, but it makes me wonder what's left for the LPOA to be used for - and what's the point? Maybe for some of the worksheets? Next time I see one, I'm going to read it a little more carefully.

Thanks for posting this, Yoli!

Reply by 101livescan on 11/3/12 4:42pm
Msg #442013

This is a huge oversight by processor, underwriter and docs department. Prelim should have been correct, it seems someone keyed in the zip code wrong on the 1003 (usually the LO), but this does surprise me that someone couldn't use LPOA to correct.

Just goes to show you how picky the lenders are getting. If they are quick enough to turn this around, could still be counted in October (I think the first five days of following month) it could be counted.

Reply by dgd/CA on 11/3/12 7:34pm
Msg #442028

Well, your Lucky Day And Unfortunate that the original NSA

had no idea that all they had to do was to line through the incorrect zip code, and have signers initial, Inclusive of the DOT or Mortgage.

One of the very first things we do as experienced NSAs (after intro and [per] state regulation regarding identification and journal entry, so forth, so on) is to verify (upon the review of the initial HUD and then, first page of loan documents) correctness of names and complete addresses... typos, irrespective of Lender or Escrow Error, resulting in staff cut back due to the economy we live in, is far more common than we would all prefer.