Helpful tips for Loan Officers?And their clients!

1. GFE?s?Always make them higher than too low.? At the closing table, clients are always happier when you have overestimated.?
2. The TIL-Explain the til to your clients, especially if they are new or inexperienced at the closing process.?? Because the til is showing interest over the life of the loan, the APR is higher than the interest rate on the note.? While people with experience with the lending process understand (or at least accept) the idea of a higher APR, some just don?t get it.? If they have already heard it from their lender, it makes it a lot easier to explain it again at the table.?
3. Have clients either sign your release (for obtaining payoff information) or let them know they will need to sign one for the title company to obtain final payoffs (many lenders still will accept requests for verbal payoffs with the clients account number, social, and address.)
4. Clients should be aware of the timing of their receipt of funds with refinances.? Calculating the date they will get their funds is not three days after they sign the docs.? The loan actually funds the day after the? three full rescission period, which does not include the day they sign the docs.? Then you need to consider that the title company can not send the checks out until the funds are physically in our bank account.? So if the loan funds late, or posts the next day, we will then send the check out the day the loan monies are in our account.? So it is safest to tell clients that their funds should be received by them approximately 6 days from the date they sign. [day one is the day they sign, days two, three and four are the rescission period; day five is ideally the date the loan funds; so day six is the day they should receive their funds.? REMEMBER if the loan funds late for any reason, their check will go out the day we actually receive the loan proceeds!! ]
5. Clients should follow up on the payoffs with their old mortgage company to verify funds were received and to request that the receive their escrow, any overages, and also to request that they receive a copy of the release or paid in full copy of the note. ?We send a letter with the payoff requesting the same.? However, if we are all honest, we have all had issues with FED Ex, UPS, even the postal service.? If for any reason, a check gets lost, or misplaced by the processing department, any fluke situation is best addressed earlier than later.? We always overnight payoffs, and payoffs usually post within 1-2 business days for mortgages.? Because of the rescission period and items discussed in number 4 above, however, clients should wait at least a week and a half to two weeks to do this, in order to allow the rescission period, funding period, and actual processing of their payoff to occur.
6. Recordings-Recordings are sent out once a week.? Final polices are sent back to the lender with the loan package, or within two weeks of closing.? Recordable instruments are sent directly back to the lender.? We keep copies of all signed documents.
7. Processing time for recordable instruments greatly varies from state to state, with WV usually being the fastest. ?Occasionally even WV gets backed up.? In those cases worse case scenario is usually about a three-week turn around time.? In other states, depending on the county,? the turn around can be as much as 6 months or more to receive the original documents back.
8. We do everything in our power to make the loans closing a relaxing experience for your client.? We assist in helping them understanding the post closing process and encourage them to call with any questions.? If they contact you with questions feel free to forward them to us
9. There are some clients who are difficult to please.? In these cases, we ask that you the loan officer assist us in understanding what we can do to ?better serve those clients.? Usually, you know who your more difficult clients are.? Usually, they have some inexperience or are very concerned about certain details from the offset.? It is very helpful if we know this up front.? We can then take time to explain in more detail the process when we call to set up the appointment.? However, there are some things we can not do, such as funding loans early. ?Clients often are refinancing to get money out of their properties.? Many times, fairly large sums are at stake, and clients sometimes get anxious to receive their funds, and will call you or call us to inquire about getting these funds.? Under no circumstances can we fund a loan prior to the proper and legal disbursement date; or until the funds from the lender have POSTED in our account.? Even if the clients complains or pressures us to do so, we can not do it as a practical matter, and ethical matter, and a legal matter. ?We have to all work together in these cases to make sure the clients understand this.
10. Finally, the loan closing process involves a lot of players.? The lender, the processor, the appraiser, home owners insurance companies, title companies, the borrower, and the closer.? Communication is key.? Working together to make sure the processor receive their commitments on time is part of what we do.? Helping clients understand the documents, and helping them receive their funds is another part of what we do.? We will always treat your clients with dignity and respect and work as hard as possible to explain documents, and make them happy with their loan.? The majority of clients are easy to please, and quick to understand.? For those clients who may have more trouble understanding the process, we will work with them to understand, or suggest they contact their loan officer directly for clarification.? Often we will call from the table for such clarification.? No matter what the case, we will keep in contact with you so you know of any issues, problems or questions we encounter at the table.??

Here is to smooth closings, which we all love.? However, this process is filled with humans and non of us are perfect!!? The steps above help make the process smoother, but overall communicating the good, the bad and the ugly will help us all understand the actual situation better.?
Always feel free to contact us with any questions or concerns or ideas of how we can do better!!?