| Author |
Previous Topic | Next Topic |
|
markaplus
25 Posts |
 Posted - 03/13/2008 : 4:02:42 PM
|
| So I closed a loan this week on Tuesday and I receive a call from the title company stating that the wire amount the bank is sending them is short and they cannot fund the loan. I had to draw docs four times because the first three times the title company could not get the numbers to balance. The final time I drew the docs I neglected to charge the borrower for the buydown. The title company charged the buydown to the customer anyways so their numbers would balance. I need the title company to take the discount charge out of the borrower paid fields of the HUD and show it POC by us to the lender. The lenders policy of discount fees are to charge them directly to the broker and then give the broker the option to charge the borrower to recoup the fee. It was my mistake for not charging the borrower when I ordered docs the last time so I am willing to just take it out of our origination fee. The problem is the lender wants to withold the money from the wire to the title company and the title company says they cannot withold money from the wire without charging it to the borrower (They say money witheld from the wire is "borrower" paid fees). They say this is a RESPA violation. The funny thing is I closed a loan two months ago with the same exact scenerio at a different title company just shorted our proceeds. The HUD said our orignination fee was X amount of dollars and our check as X-buydown fee. So either the title company I am currently working with is right and the title company from two months ago did it wrong, or the current title company is wrong. Anybody ever experience this or have any ideas? |
|
markaplus
25 Posts |
Posted - 03/13/2008 : 7:01:28 PM
|
| Anybody? |
|
|
neversaynever
1044 Posts |
Posted - 03/13/2008 : 7:03:13 PM
|
| get a new title company, they srewed the pooch |
|
|
hherrm
1407 Posts |
Posted - 03/13/2008 : 7:25:26 PM
|
| I don't know what the wire has to do with RESPA, it is the HUD that counts. All the title company has to worry about is that there is enough money to fund. Either the buyer has to come up with extra money or you are giving up your origination, has nothing to do with the wire being short. |
|
|
Reegor
484 Posts |
Posted - 03/13/2008 : 7:29:09 PM
|
Corrected HUD and problem solved.
|
|
|
markaplus
25 Posts |
Posted - 03/14/2008 : 6:00:19 PM
|
That is what I thought. Correct the HUD and it will be okay. Apparently the title company thinks that this is wrong since their check to us will not match what the HUD said we charged. We have given credits before when the borrower is short to close and this is no different.
I will have to get a new title company. This whole thing escalated and now the title company is not approved through one of our biggest lenders. Oh well. |
|
|
| |
Previous Topic | Next Topic |
|
Search for: 
