>>>You will be handed a line of crap - most often, that the Borrower's rate lock will expire and they'll have to have a higher rate (this is designed to snag your humanity AND obtain borrower's cooperation, and it's USUALLY BS!) Back-dating is all about homage to the Almighty Dollar, usually from the Loan Officer, often w/o the Lender's knowledge or the Borrower's awareness of the laws being broken.<<<
This is correct. The lender has the ability to extend the rate lock for a day or two, IF the LO calls the lender, or completes the appropriate paperwork.
It is not unheard of to have a rate lock extended. The problem is many LO's, TC's, and SS's are more interested in just getting the loan signed at any cost, rather than going back to the lender for an extension.
And if you think, that because you backdated last year, or the year before, and haven't been caught so it's okay, think again.
What will happen is the borrowers you backdated will get another loan. The new Notary will go over, in detail, the RTC, HUD, Note, and TIL, and briefly go over the rest of the docs in the package.
At some point during that process, the borrower will tell the new Notary, "The other Notary didn't do this and didn't know anything about our loan. In fact, that Notary had us put the wrong date on everything and we didn't even have three days to cancel. We didn't know what we were signing and they rushed us right through it. We didn't find out until later that the loan wasn't what we thought it was, but it was too late to get out of it. The whole thing was a nightmare and that's why we have to get this new loan."
Well, when borrowers tell me this, I give them the phone number to the Attorney General's office and the Governor's Legal Counsel to file a complaint. I'll bet that most, if not all, call and complain about the backdating and not having a RTC.
Years ago, one borrower was so grateful that I gave her the numbers, that she called me constantly and told me what was going on with her case. She eventually was reimbursed for her closing costs, her prepayment penalty and some other monies. She was told that the Notary lost their commission for their part in the fiasco.
So before you think about backdating, know this, it can and will follow you. It is not an isolated instance, there is a trail, and there are other people involved who know you did this illegal act. Your illegal act will catch up with you, when you least expect it. |
