Posted by Roger_OH on 10/15/13 9:15pm
Msg #488265

Borrower's copies?

Is it not a RESPA requirement that refi borrowers be provided a complete copy of their documents at the time of signing, so they can review them during the RTC period?

Is this in writing somewhere?

Reply by Marian_in_CA on 10/15/13 9:22pm
Msg #488266

"Each qualified lender shall provide a copy of all loan documents to the borrower or the borrower's legal representative at the execution of the loan. Subsequently, upon written request of a borrower or a borrower's legal representative, a qualified lender shall provide, as soon as practicable, a copy of any loan documents signed by the borrower, a copy of other documents delivered by such borrower to that qualified lender, and a copy of each collateral evaluation of the borrower's assets made or used by the qualified lender."

http://www.gpo.gov/fdsys/pkg/CFR-2011-title12-vol6/xml/CFR-2011-title12-vol6-sec618-8325.xml

Reply by Claudine Osborne on 10/15/13 9:31pm
Msg #488268

I know what you are thinking about Roger and I wonder about their RTC notice? How are the BOs to receive this if their documents are digitally stored for their review after the closing?

Reply by Roger_OH on 10/15/13 11:07pm
Msg #488274

Thanks Marian - just what I needed! n/m

Reply by Marian_in_CA on 10/16/13 12:32am
Msg #488277

Re: Thanks Marian - just what I needed!

No Problem, Roger. I'm not sure that rule is specifically a RESPA rule, though... and I think that's what you were asking. It's part of Title 12 of the CFR (Code of Federal Regulations) relating to Banks and Banking. Now, RESPA is also part of the CFR, but under Title 24, which related to the HUD (ousing and Urban Development) ... so it's all basically federal law.

So, the copy rule is Federal law.... I'm just not sure it's part of RESPA.

Reply by ReneeK_MI on 10/16/13 4:39am
Msg #488279

Marian - quote doesn't apply to residential loans

What you quoted is a Sub-chapter of Title 12, specific only to agricultural/farm credit.

Per definitions for/in this sub-chapter:

"Loan means a loan made to a farmer, rancher, or producer or harvester of aquatic products, for any agricultural or aquatic purpose and other credit needs of the borrower, including financing for basic processing and marketing directly related to the borrower's operations and those of other eligible farmers, ranchers, and producers or harvesters of aquatic products."

I am unaware of any similar Federal law specific to residential lending requiring a copy of the entire loan package to be provided to borrowers - but specific disclosures required are buried within various Regulations. For example:

RESPA - GFE, the Special Information booklet, and "inspection" of the HUD
REG Z - TIL, RTC when applicable
REG B - copy of appraisal (most recent, if multiples were done) & ECOA Notice

If I wanted to compile a verifiable list of required disclosures (which it seems Roger might be trying to do? I'm not ...), I would work backwards - taking each familiar/known disclosure and document, and searching for the Regulation. One has to look in both Federal laws & State laws, but logic would indicate any "Disclosure" is required by someone, somewhere.

As for documents that are not 'disclosures', such as the Note, Mtg, 1003 - I have never found or heard of an applicable Fed law requiring copies be provided. That's not to say there isn't a law, only that I've never found one.

Reply by GOLDGIRL/CA on 10/15/13 11:13pm
Msg #488275

Sorta off topic ....

This post brings to mind my recent experience buying real estate. Every inch of the way was done digitally. I haven't seen nor ever will one piece of paper regarding anything in the entire transaction (unless I choose to print despite the fact I think Coldwell Banker can afford paper and toner). I suppose I will start seeing paper when the closing arrives ... tho I would prefer that digitally, as well. In fact, I think I'll ask the notary or TC to put my copy on a CD.

This antiquated obsession with paper copies appears to be endemic to our business... but no one else. I know many TCs are trying to get away from it, as far as borrower copies go. A couple of years ago I was at a signing where the lender flipped because the entire purchase had been done digitally and they required the Realtor to print out everything and have it re-signed on paper! Whatever ...... LOL

Reply by MW/VA on 10/16/13 9:49am
Msg #488300

I hear that all the time. People are complaining that these

transactions (refi's) are still paper. Then we're back to the requirement of a notary & personal appearance. Yes, I've heard from several clients that they buy & sell real estate all the time electronically.

Reply by NVLSlady/VA on 10/16/13 11:15am
Msg #488314

Re: I hear that all the time. People are complaining that these

Me, too. They don't get the paper thing. Different mindsets today (everyone's whole life is on a hand-held screen!) Most people don't even want copies of receipts. The Cloud, good or bad is lifestyle friendly.

When I visit my mom I see the very same encyclopedia volume and Tell Me More books that we had over 30 years ago; so you might imagine what her paper files look like

Reply by sigtogo/OR on 10/16/13 12:48pm
Msg #488337

so you're saying I should lose the old encyclopedias? lol

Just because we keep some old books doesn't necessarily mean we keep old papers my files get cleaned out yearly but the book shelf.....

Reply by NVLSlady/VA on 10/16/13 1:00pm
Msg #488340

Re: so you're saying I should lose the old encyclopedias? lol

Yes, lose any book with copyright before 1980! I love looking in second hand shops for books - and have stumbled on like new editions . . . But I check that little 'c' and no matter the condition (for reference books), it stays if outdated I mean how many thesaurus's can I own??

(Of course, make exception for old Bibles, Shakespeare, classics, etc.)

Reply by TeriW/CA on 10/17/13 7:44am
Msg #488402

Re: so you're saying I should lose the old encyclopedias? lol

Omg, I have my great aunt's full set from the 1950's, LOL... I also need to put in some major shredding time =)