Closing Instructions The Good, The Bad and The Ugly

With lenders responsible for production and delivery of the Closing Disclosure under the TILA-RESPA Integrated Disclosures (TRID) rule, many lenders are modifying their closing instructions and shifting liability onto settlement and closing agents. These new instructions can create a host of problems for closers and your bottom line. This webinar discusses the importance of reading all closing instructions, share examples of different closing instructions and detail how settlement companies have pushed back on lender requirements.

[adventuresanddice]

I really liked this video, it was very informative. One item that lenders instructions should be more specific is the form (long or short form) they need for that specific loan. Some lenders will use the words full or extended to indicate a need for a long form. While some other lenders aren't mentioning any style of form at all. As a closer having that aspect be made crystal clear is very important. There should be more standardized language to inform title company's. I have noticed this is more of an issue for smaller lenders so making a required standard of language would be helpful. Larger lenders tend to have boiler plate instructions that say general policy requirements depending on the specific state or needs of the loan. I am often hunting other documents down to verify what I believe the lender is asking for and having to check email signatures for policy forms the will accept or not accept at all.They should also make this long form or short form policy a requirement that they include in the initial title request. Do you think this will be something that you can standardize in the future?

Sorry if you mentioned this topic and I missed it. Again this is a wonderful video.