11 Tips to Keep Your Settlements on Track

Participants in the NVAR Real Estate Finance & Settlement Forum offered tips to help Realtors® adjust to the new Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosure (TRID) timelines. Are you interested in learning more and keeping up to date on the latest finance issues? Plan to attend a future REFSF meeting. The group gathers at NVAR Fairfax on the third Wednesday of each month, from 1 – 3 p.m. Email webmaster@nvar.com to learn more and be added to the roster.

1. Realtors® must provide their license information since it is REQUIRED for the Closing Disclosure (CD). Agent and broker license information should be included on the contract. If it’s on the contract, the lender can prepare the CD in a timely manner.

2. One problem lenders encounter is when fees have not been disclosed, and then suddenly pop up from the title company after the final CD is issued. Realtor® administrative fees and HOA fees are common examples.

3. Along with a fully signed contract with all addendums, the mortgage company or title company must receive e-mail addresses, physical addresses and phone numbers for the buyers, sellers, listing and selling agents. 

4. Any contract amendments or extensions must be sent to the lender as soon as possible. For example, any change to buyer names, credits from seller to buyer, or closing date affects the closing.

5. The title company needs information about any current loans on the property. The title company may contact a seller directly. Realtors® should notify sellers that the title company will be contacting them for their loan numbers and social security numbers, which are required by most lenders when ordering the payoff statement. Many lenders also require a written authorization from the sellers to release a payoff statement.

6. Failure to deliver HOA docs can hold up a transaction. Furnish all available HOA contact information.

7. If a buyer cannot attend the closing, the lender must either approve the use of Power of Attorney or approve mailing out the documents for signing. If any parties are out of the country, they will need to arrange for the acknowledgment of their documents, which will also need to be authenticated by a US notary or US military officer for military personnel.

8. If agents are giving credits from their commissions, that information must be disclosed a minimum of four days prior to closing; it alters the CD and must be reviewed by the underwriter.

9. The buyer is the only one who can release information to the listing agent and buyer’s agent.  

10. The listing agent should always provide current tax assessment information, as that impacts closing costs. Errors in the assessment can cost the lenders huge penalties.

11. Include the title company address, not just the name. Lenders now have the ability to provide more accurate numbers for specific title companies by address. Fees can differ various locations within the same company, which can mean different closing costs.
 
Editor’s Note: Special thanks to Ann L. Johnston, Frank Donnelly, Mike Eastman and Fred Bowers for their input.