There are four set of functions that are involved in the mortgage loan production. They are Origination, Processing, Underwriting and the closing. Every process need to be required certain legal documents for the completion of the mortgage lending transaction.
Closing the loan, does not mean the end of the mortgage life cycle, but to continue with the servicing part of the loan till the time it is paid off or loan has been refinanced or foreclosed. For the closing part, the closer needs to prepare and review the legal documents required for the completion of the mortgage lending transaction. There are 7 closing documents that are required for every loan closing, namely Promissory note, Security instrument (either Mortgage or Deed of Trust depending on the state location), Deed, Truth in Lending Disclosure Statement, Uniform Settlement Statement (HUD-1), Title Insurance Policy and Hazard Insurance Policy.
The closer need to complete the preparation of the closing documents and need to review of each document for the accuracy purpose. After the review part is over, the closer need to send it to the closing Agent and he can be one of the following:
An outside attorney
A title insurance company
An escrow agent or the closing staff of the mortgage banker.
If the loan is not closed by the mortgage banker and it is closed by some other person, the mortgage banker needs to collect an insured closing letter from the closing agent. However, the responsibility goes on mortgage banker to maintain the accuracy of closing documents and procedures. The closer needs to identify and maintain a list of the funds that have been delivered to the settlement agent. So the responsibility goes on the settlement agent for distributing the funds to all the people who are involved in this transaction.
0 comments:
Post a Comment