Comments on: Major Proposed Changes for Residential Closings in 2008 http://raincityguide.com/2007/12/12/major-proposed-changes-for-residential-closings-in-2008/ Seattle's Leading Resource for Real Estate Information Sat, 21 Nov 2009 06:01:18 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Rhonda Porter http://raincityguide.com/2007/12/12/major-proposed-changes-for-residential-closings-in-2008/#comment-230895 Rhonda Porter Thu, 20 Dec 2007 23:59:32 +0000 http://raincityguide.com/2007/12/12/major-proposed-changes-for-residential-closings-in-2008/#comment-230895 Our docs are typically very early to escrow. Sadly, escrow companies we've not worked with before are often very surprised. Many lenders (and escrow companies) work from the closing date backwards. Which of course you do have to prioritize transactions...this will make it tougher to do "quick" closings like a 10 day or two week. Our docs are typically very early to escrow. Sadly, escrow companies we’ve not worked with before are often very surprised. Many lenders (and escrow companies) work from the closing date backwards. Which of course you do have to prioritize transactions…this will make it tougher to do “quick” closings like a 10 day or two week.

]]> By: Reba Haas http://raincityguide.com/2007/12/12/major-proposed-changes-for-residential-closings-in-2008/#comment-230807 Reba Haas Thu, 20 Dec 2007 20:38:36 +0000 http://raincityguide.com/2007/12/12/major-proposed-changes-for-residential-closings-in-2008/#comment-230807 I don't think that the new escrow requirements will stop agents from attending signing appointments. It might alter how they engage in those meetings but I don't think they'll go away. I tend to go to about 95% of my client signings because we know that there are plenty of times that last minute issues come up that need problem solving and we're there to help handle it since the escrow company doesn't represent our client. It will be interesting to see if lenders start working harder to get documents in to escrow at an earlier date but I'm sure there may be pressure from lenders to agents to begin pushing out timelines of contracts to accommodate these requirements. Such as, put a 35 day closing period versus 30 days since we know it typically takes 15 - 21 days to get through the underwriting process. It's one of the sad issues of the general industry that all these specialities don't work more closely together to streamline processes and that many of the legal requirements of one segment are in direct conflict with another segment (escrow/lending/real estate). I don’t think that the new escrow requirements will stop agents from attending signing appointments. It might alter how they engage in those meetings but I don’t think they’ll go away. I tend to go to about 95% of my client signings because we know that there are plenty of times that last minute issues come up that need problem solving and we’re there to help handle it since the escrow company doesn’t represent our client.

It will be interesting to see if lenders start working harder to get documents in to escrow at an earlier date but I’m sure there may be pressure from lenders to agents to begin pushing out timelines of contracts to accommodate these requirements. Such as, put a 35 day closing period versus 30 days since we know it typically takes 15 – 21 days to get through the underwriting process. It’s one of the sad issues of the general industry that all these specialities don’t work more closely together to streamline processes and that many of the legal requirements of one segment are in direct conflict with another segment (escrow/lending/real estate).

]]> By: Rhonda Porter http://raincityguide.com/2007/12/12/major-proposed-changes-for-residential-closings-in-2008/#comment-229497 Rhonda Porter Tue, 18 Dec 2007 17:58:37 +0000 http://raincityguide.com/2007/12/12/major-proposed-changes-for-residential-closings-in-2008/#comment-229497 Banks have been using their own escrow for years and years. How neutral is that? Plus (off topic now) when you use a bank, you may get to use their in-house appraisal (like Countrywide's Landsafe). Many <a href="http://www.mortgageporter.com/reportingfromseattle/2007/04/title_insurance.html" rel="nofollow">local real estate companies have ownership interest in escrow and title</a> companies too.   Cozy. Banks have been using their own escrow for years and years. How neutral is that? Plus (off topic now) when you use a bank, you may get to use their in-house appraisal (like Countrywide’s Landsafe).

Many local real estate companies have ownership interest in escrow and title companies too.   Cozy.

]]> By: David Young #510-LO-34429 http://raincityguide.com/2007/12/12/major-proposed-changes-for-residential-closings-in-2008/#comment-229486 David Young #510-LO-34429 Tue, 18 Dec 2007 17:31:56 +0000 http://raincityguide.com/2007/12/12/major-proposed-changes-for-residential-closings-in-2008/#comment-229486 Here's Wells Fargo Escrow, LLC: https://www.wellsfargo.com/jump/mortgage/escrow?_requestid=42153 Here's Countryslide's Title and Escrow Services in FLorida: http://www.countrywidetitle.net/HomesAndAgents/ Fun stuff, eh? Here’s Wells Fargo Escrow, LLC: https://www.wellsfargo.com/jump/mortgage/escrow?_requestid=42153

Here’s Countryslide’s Title and Escrow Services in FLorida: http://www.countrywidetitle.net/HomesAndAgents/

Fun stuff, eh?

]]> By: Kary L. Krismer http://raincityguide.com/2007/12/12/major-proposed-changes-for-residential-closings-in-2008/#comment-229227 Kary L. Krismer Tue, 18 Dec 2007 06:32:11 +0000 http://raincityguide.com/2007/12/12/major-proposed-changes-for-residential-closings-in-2008/#comment-229227 How could a bank be an escrow in a transaction to which they were also a party? That seems like a really bad idea all around, especially from the bank's point of view. If such departments exist, they'll probably get closed damn fast once the first deed of trust gets avoided based on something the escrow knew at closing. How could a bank be an escrow in a transaction to which they were also a party? That seems like a really bad idea all around, especially from the bank’s point of view. If such departments exist, they’ll probably get closed damn fast once the first deed of trust gets avoided based on something the escrow knew at closing.

]]> By: David Young #510-LO-34429 http://raincityguide.com/2007/12/12/major-proposed-changes-for-residential-closings-in-2008/#comment-228987 David Young #510-LO-34429 Mon, 17 Dec 2007 20:12:45 +0000 http://raincityguide.com/2007/12/12/major-proposed-changes-for-residential-closings-in-2008/#comment-228987 Wow! Fun stuff....I say we LO's start making our Good Faith Estimates look exactly like the HUD-1 Settlement Statements. That oughta help some. And, I bet you'll see a Yield Spread Premium Disclosure right around the pike, where the yield is 'dollarized'. Of course, this definitely helps the banks that have their own escrow companies, thus making it all the more harder for self-employed peoples to provide sustainable business models. Ah well, it's either big government or big business right? (Go Ron Paul!) Wow! Fun stuff….I say we LO’s start making our Good Faith Estimates look exactly like the HUD-1 Settlement Statements. That oughta help some.

And, I bet you’ll see a Yield Spread Premium Disclosure right around the pike, where the yield is ‘dollarized’.

Of course, this definitely helps the banks that have their own escrow companies, thus making it all the more harder for self-employed peoples to provide sustainable business models. Ah well, it’s either big government or big business right? (Go Ron Paul!)

]]> By: The Odysseus Medal competition — Voting for the People’s Choice Award is open | BloodhoundBlog: Real estate marketing and technology blog | Realtors and real estate, mortgages, lending, investments http://raincityguide.com/2007/12/12/major-proposed-changes-for-residential-closings-in-2008/#comment-228430 The Odysseus Medal competition — Voting for the People’s Choice Award is open | BloodhoundBlog: Real estate marketing and technology blog | Realtors and real estate, mortgages, lending, investments Sun, 16 Dec 2007 19:18:06 +0000 http://raincityguide.com/2007/12/12/major-proposed-changes-for-residential-closings-in-2008/#comment-228430 [...] Here is this week’s short-list of Odysseus Medal nominees: Rhonda Porter — Closing procedures, Major Proposed Changes for Residential Closings in 2008Krista Baker — Emotional needs, Do You Address Your Clients’ Emotional Needs?Brian Brady — Sub-prime oil, We’re All Sub-Prime Borrowers (Who Consume Oil)Gary Elwood — Online marketing, The 3 Commandments of Online Marketing You Must ObeyKris Berg — Concurrent closings, Newton’s Umpteenth Law - Concurrent ClosingsBrian Boero — Blurred vision, Blurred visionKris Berg — RESPA, What’s my real estate license worth? More than a hundred bucks.Bill Leider — What is a brand?, What Is A Brand?Chris McKeever — Listings portals, A [HAR]d LessonJoel Burslem — Scripps, Scripps Cracks Open the DoorDan Green — Foreclosures, Why Healthy Bodies and Healthy Marriages May Be More Relevant To Slowing Foreclosures Than Interest Rate AdjustmentsKevin Boer — Redfin, The Lessons Of Redfin, Part I: The Marketing Value Of The Obvious [...] [...] Here is this week’s short-list of Odysseus Medal nominees: Rhonda Porter — Closing procedures, Major Proposed Changes for Residential Closings in 2008Krista Baker — Emotional needs, Do You Address Your Clients’ Emotional Needs?Brian Brady — Sub-prime oil, We’re All Sub-Prime Borrowers (Who Consume Oil)Gary Elwood — Online marketing, The 3 Commandments of Online Marketing You Must ObeyKris Berg — Concurrent closings, Newton’s Umpteenth Law – Concurrent ClosingsBrian Boero — Blurred vision, Blurred visionKris Berg — RESPA, What’s my real estate license worth? More than a hundred bucks.Bill Leider — What is a brand?, What Is A Brand?Chris McKeever — Listings portals, A [HAR]d LessonJoel Burslem — Scripps, Scripps Cracks Open the DoorDan Green — Foreclosures, Why Healthy Bodies and Healthy Marriages May Be More Relevant To Slowing Foreclosures Than Interest Rate AdjustmentsKevin Boer — Redfin, The Lessons Of Redfin, Part I: The Marketing Value Of The Obvious [...]

]]> By: Kary L. Krismer http://raincityguide.com/2007/12/12/major-proposed-changes-for-residential-closings-in-2008/#comment-227383 Kary L. Krismer Fri, 14 Dec 2007 13:46:20 +0000 http://raincityguide.com/2007/12/12/major-proposed-changes-for-residential-closings-in-2008/#comment-227383 It becomes an issue if something goes wrong with the transaction. If real estate agents were penalized, fined, sued every time they made a mistake, there'd be a lot of fines, penalties and lawsuits filed. But in 95%+ of transactions, both parties are happy when the day is done, and they don't think about it any more. I really don't think individual agents have much to worry about from the WSBA. The WSBA would go after bigger targets, like Redfin, but even that's unlikely because this isn't a state that has ever used attorneys much for real estate tranactions (compared to some states). What the individual agent (or larger firm) has to worry about is the lawsuit situation where a claim for damages gets trumped into something more. In the Cultum v. Heritage House case, which allows us to fill in forms, the damages were under $200 (interest on the earnest money). If the agent have been found to have been practicing law in an unauthorized manner, the attorney fees they would have owed would have been $32,000 (based on the amount awarded in the lower court). That's the risk! It becomes an issue if something goes wrong with the transaction.

If real estate agents were penalized, fined, sued every time they made a mistake, there’d be a lot of fines, penalties and lawsuits filed. But in 95%+ of transactions, both parties are happy when the day is done, and they don’t think about it any more.

I really don’t think individual agents have much to worry about from the WSBA. The WSBA would go after bigger targets, like Redfin, but even that’s unlikely because this isn’t a state that has ever used attorneys much for real estate tranactions (compared to some states). What the individual agent (or larger firm) has to worry about is the lawsuit situation where a claim for damages gets trumped into something more.

In the Cultum v. Heritage House case, which allows us to fill in forms, the damages were under $200 (interest on the earnest money). If the agent have been found to have been practicing law in an unauthorized manner, the attorney fees they would have owed would have been $32,000 (based on the amount awarded in the lower court). That’s the risk!

]]> By: ARDELL http://raincityguide.com/2007/12/12/major-proposed-changes-for-residential-closings-in-2008/#comment-227204 ARDELL Fri, 14 Dec 2007 04:56:02 +0000 http://raincityguide.com/2007/12/12/major-proposed-changes-for-residential-closings-in-2008/#comment-227204 Kary, Clearly you know that every agent in the Country explains the contract more than any Bar Association would have them do, except in NYC and North Jersey. Your case of a CA agent in WA notwithstanding, given he was practicing without a license, how many cases of the hundreds of thousands of agents explaining contracts for 100 years have been brought to penalty phase? Kary,

Clearly you know that every agent in the Country explains the contract more than any Bar Association would have them do, except in NYC and North Jersey. Your case of a CA agent in WA notwithstanding, given he was practicing without a license, how many cases of the hundreds of thousands of agents explaining contracts for 100 years have been brought to penalty phase?

]]> By: Kary L. Krismer http://raincityguide.com/2007/12/12/major-proposed-changes-for-residential-closings-in-2008/#comment-227178 Kary L. Krismer Fri, 14 Dec 2007 03:51:45 +0000 http://raincityguide.com/2007/12/12/major-proposed-changes-for-residential-closings-in-2008/#comment-227178 Tim, I appreciate the thought, but I try to avoid answering legal questions for my clients. The thing is though, if I venture over the line too far, I don't have the penalties hit me that would hit other agents (attorney fees, limited treble damages, etc.). Tim, I appreciate the thought, but I try to avoid answering legal questions for my clients. The thing is though, if I venture over the line too far, I don’t have the penalties hit me that would hit other agents (attorney fees, limited treble damages, etc.).

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