Closing Instructions: The Good, the Bad and the Ugly

 

By Margaret Sklenar

Lender closing instructions—to read or not to read? Veteran closers and settlement agents often familiarize themselves with closing instructions they see on a daily/weekly basis and the instructions get lost in a sea of legal jargon and mere words. The closer and settlement agent assume that whatever is in the instructions is certainly not meant for them! After all, they have closed residential mortgage transactions for months and or years. The closing instructions are really meant for a new closer or settlement agent who knows NOTHING about closing a residential transaction and needs the lender to walk them through the garden of navigating and understanding what a lender expects and requires on a typical closing that involves a new mortgage.

That scenario describes the yesterday world of closing instructions.

Questions for today’s settlement agent:

1. How many closers call the lender and ask for updated instructions when a lender requests an endorsement your state does not issue?
2. Type of policy lender requires that is not relevant to your transaction?
3. Assurance to deliver to the lender on an annual basis your company’s profit and loss statement?
4. Promise to assume any and all penalties and financial responsibility for non-compliance of TRID?

Stay tuned!

Margaret Sklenar is owner of Metropolitan Title of Indiana LLC. She can be reached at [email protected]. Sklenar will speak more in depth about this topic during a session titled "Closing Instructions: The Good, the Bad and the Ugly" during ALTA's Annual Convention. Click here to register.

Comments

[Kathy Engwer]

Please Regions Bank instructions require the TITLE AGENT to act as their LAWYER and assume ALL responsibility.