Closing Statement

[Terry Russell]

In the normal course of a residential real estate transaction, 1st mort. re-fi, etc. If I were to assume that the appraiser rarely views the closing statement, could I rest on that asssumption?

Terry

 

[Pamela Crowley (Florida)]

Even when I ask for a copy they rarely ever give me one claiming confidentiality.

 

[Terry Russell]

Pam,

Could one possibly state that you must have it for your files. With the new requirements for previous sales, say "I gotta have it." Kind of a weak arguement, but where I was getting to was corrupt lender practices.
A surefire way to pop a mortgage broker's bubble is to catch them skimming fees. Pay the appraiser $350, charge the borrower $450. Federal crime!! And of course, a little investigation would not reveal any other criminal acts, think?

Terry

 

[Pamela Crowley (Florida)]

A few years ago I did get my hands on one that the mortgage broker owed me the fee and had collected it on the HUD 1. He paid me ASAP once he knew I had a copy of that closing statement.

Most often if I get them they come from the closing agent - IF I can find out who it was. Of course, that is getting easier with our sunshine laws here and the deeds and mortgages that are available on-line now shows who drafted them (usually the closing agent).

The system is set up for us not to be able to nail them even though the theft is right there on the closing statement. I do wish they would make it necessary for the closing agents to verify payment of the fees collected!!!

 

[Terry Russell]

Pam,

Could you elaborate on how the 'system' is setup in such a way that one can not bring to light this crime.

tterry

 

[Pamela Crowley (Florida)]

Terry,

Nobody is responsible for finding out about whether a POC (paid outside of closing) fee for a service and/or those that are collected on the HUD 1 are actually paid, being paid or that it's the correct amount that was charged. Add on that they love to say that they cannot give us a copy of it due to confidentiality laws.

That's a set up for fraud IMO.

At the very least, they should have to provide a copy of the invoices and whether they are actually paid for to the borrower.

 

[Restrain]

The lenders are no longer showing them around here due to Gramm-Leech-Blyland, citing confidentiality. Such is life.

 

[Jonathan Davey]

son if im the broker, and i wrote the closing statement, and now have to dispearse funds to appraisers......ummm shouldn't i get paid for that?

 

[Pamela Crowley (Florida)]

Jonathan,

If the closing agent want extra money for making sure the appraiser is paid when it really was the job of the loan officer - then charge the loan officer! There are many other items that need to be verified and paid for at the closing. Adding the verification of payment of the invoices of the Appraiser, Surveyor, Home Inspector would be very simple if the LO were able to provide a PAID IN FULL Invoice. Charge the LO an additional fee if that is not provided.

Simple!

 

[Tim Hicks (Texas)]

I have been provided closing statements before. Title companies will not realease them for confidentiality reasons. However, more than once, I have been asked to use a non-published sale. When I tell the loan officer, I can not use that sale without a copy of the closing statement to verify sales price, concessions, etc. It is amazing what happens to confidentiality then. I will not use a non-published sale without a copy of the closing statement to include in the report. It did backfire last week on a loan officer. She had the perfect new home sale for me with a pool. However, the closing statement revealed two separate transactions with escrow for the pool. She was not happy that I could figure that out.