Could you make a poster the size of a car regarding re-disclosure issues at your next meeting. It would probably help the LO’s avoid lost business and mend the industry image it sorely tries to salvage.

My best advice would be to call the LO, and not hesitate for a moment to call the managing broker (or bank manager).

WA state is very clear about the requirement to redisclose (with a new GFE) any increase in fee to the borrower at least 3 days before signing.

I do not think DFI would have much tolerance for violations like this, and most brokers and LO’s would gladly reduce the fee, post closing, to avoid the cost and trouble of answering to DFI, if they wanted to continue lending in WA state.

Under the new procedures, the closer at the signing is aided by a mandatory script to be read aloud to the consumer which CONTAINS the GFE data and the HUD data. The script guides the consumer in a comparison which has been prepared by the settlement agent with information provided by the lender. Any difference in the GFE origination charge and the HUD origination charge won’t be tolerated and would have been caught by the settlement agent before going to the table.

Complicated, is the realistic answer. If escrow receives written notice to stop or delay closing until clarification of a matter is completed, then escrow will comply.

Our job is to abide by the written instructions we receive from our clients (buyer(s) or seller(s) ). If clients give conflicting instructions, then we notify all parties of the conflict and ask for written instructions on how to proceed.

If the buyer signs all the docs, but later that day or first thing the next morning, finds out that he shouldn’t have agreed to whatever he signed — can deliver a notice to escrow to stop the closing procedure, and that escrow must stop at that notice — is this correct?

In a sense, if a mistake does happen, there is time (unless the sale is closing that same day), to sign the paperwork, and still find out the correct answers, and notify escrow to terminate if such action seems legally justified … and not be in a risky situation such as breach of contract with a seller.

Right/wrong/what?

And, another point to make, is that if buyers are using a lender that their agent has recommended, hopefully this type of situation would never have occurred — again, keeping in mind that what I am saying is that the buyer is dealing with a quality agent who recommends quality lenders …! Lot’s of second guessing on these posts, so stating the obvious here.

Certainly, buyers can and do find their own lenders, and that’s where as agents we really do need to stay on top of what this ‘unknown’ lender may be doing.

It’s difficult dealing with an unknown quantity, and working with an unknown lender, no matter if they are a name-brand lender or otherwise, always makes me nervous. What I really appreciate is when I am dealing with someone that I don’t know, is for them to take a few extra minutes in the beginning of a transaction to let me know that they indeed will be on top of everything – that they take the time to email, call or whatever to make sure I hear from them and that they are not invisible. Just hearing their voice, or seeing their written words are reassurance too! How many times have I heard “I’m going to use Billy Joe because we were in a frat house together” or “I’m going to use my dad’s financial advisor, Milton, who is 89 years old” … or worse, “I’ve got my loan thru the internet!!” …. aaaaahhhhhhhh!!!!

You’d be surprised at how many lenders for the buyer don’t bother to contact the listing agent with contact info, or to say just a friendly ‘hello,’ I’m going to make this transaction as smooth as possible for everyone involved’ would be very welcome.

I don’t recall any clients in this situation who I wasn’t able to assist. I believe it’s principally because I let escrow know early on that my client’s closing documents are to be sent to me in advance for review and advise my clients to ride their LO and processor like a rented mule when the closing date is approaching. The squeaky wheel gets the grease and I’ve found that virtually all LO’s will make the loan docs happen when they’re getting pestered frequently. An email from their client’s attorney also tends to speed things up.

Fortunately, I’ve always managed to get the documents early enough to address mistakes far enough in advance so that no client has been forced to breach their contract and none, to my knowledge, have ever accepted loan terms they weren’t expecting.

I actually had the escrow guy CALL him, on speaker…and the LO had the balls to tell me I misunderstood what he was saying originally.

I was basically forced to sign because I had no idea what the possible repercussions would be had I not.

If I was to do it again I would have made him redraft everything or walk away.

If you’re the buyer in this situation what do you do when you get to the closing table? Sign the docs, walk away and refuse to sign, scream at your LO (alternatively, for you agents what do you advise your clients do)?