They can't get them in on time now.
What am I referring to you ask? Well loan docs of course. In Arizona, our contract clearly states that clients are to be approved without conditions and loan documents are to be at the Title Company for signature three days prior to Close of Escrow. Buyers are expected to deposit necessary funds to close and sign that day.
That so rarely happens I am actually surprised when it does. I shudder to think what will happen after October 3rd when that time frame is actually doubled under the TRID changes. Most of the lenders, the big banks especially, don't even send the file to underwriting until the week before closing. Some of them have 72 hour turn-around times in underwriting and then another 48 hours to get documents printed and sent to the Title Company. These sales are usually right down to the wire to get docs signed, approved, and funded. Rarely do they record on time.
Now with TRID, those documents need to be there a week ahead of time so they can be prepared, finalized, buyers signed, and then the three day time frame before they can actually close. That is assuming that the docs are correct in the first place. If they aren't, back to lending they go and the time is re-set and we start again.
I have to wonder just how prepared the lending institutions are for these changes. My guess is, not very. They know they hold the cards to get these things to closing and everyone is at their mercy at the end. We can call, email, text, cry, whine, yell, and it makes no difference. Lenders operate on "Lender's Standard Time" and there is little we as agents can do to push them. Push too hard and they get stubborn and push our file to the bottom of the stack. Push too little and the file will be ignored.
I keep asking myself how to prepare sellers for the inevitable delays that are going to happen. No one is perfect and there are going to be mistakes on the files. What I'm still not clear about and I hope to find out next week in a TRID class is whether this is a last minute out for a buyer if they don't like those final figure? I hope not, that is going to really tear things apart when buyers are shy about committing in the first place and scared of the commitment they are making.
Oh well, enough of my Saturday morning ponderings. Have a wonderful and productive weekend everyone.
Sandra Paulow
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