Sunday, November 1, 2015

The New Standard Practice: Our Latest Adventure

So here I am writing a post in my Blog called Escrow Experts, thinking that in this new Lending environment, I am anything but an expert. Learning as I go along and putting into action that which I learned in theory these last many months. The nice thing is that I am amongst good company. Throughout the nation, my peers, all respected professionals, are in the same proverbial “boat”.

As a quick reminder, as of October 3, 2015, we will no longer use the HUD1 Closing Settlement Statement, which has been phased out in exchange for the new Closing Disclosure.

There will be so much more liability on the lenders' shoulders, that the lenders will be issuing the Closing Disclosure based on an accumulation of fees provided to their office by the Settlement Provider (Escrow Holder). Consequently, the situation is now such that all fees as provided to the Lender must be actual, with little to no room for inflated Estimates as we have provided in the past. This creates quite a challenge, as in Escrow, we never really know what will be required of our office until the very end.

Consequently, effective October 3, 2015, Sepulveda Escrow Corporation has a new fee schedule, whereupon our office has done our best to keep our fees as close and reasonable as our previous schedule of fees, with the exception of including a small increase for archive fees and cost of living.

I also want to take this opportunity to explain something of great importance. During the last several years, our office has put a new protocol in place due to the terms and conditions in the lenders Instructions, and which some of you may not be aware of. Lenders require the Escrow company to be fully responsible and liable for the actions of the notary public performing the signing and notarization of the Loan documents (most require a One Million Dollar Errors and Omissions Policy of Insurance). Due to this burden of liability, our office requires Buyers to sign their loan documents in our office, and during our hours of operation. Doing so protects the Buyer on an even higher level by avoiding the documents being handled by outside notaries, Agents or Mortgage Brokers. (In the event of extenuating circumstances, such as out of State Buyers, our office has in place a Nationwide Signing and Notary Company who we employ to accommodate the signing). Each and every Manager of a direct Lender with whom I have spoken agrees with this as a necessary practice, and as such Sepulveda Escrow adapted this as company protocol.

While signing in escrow during office hours may not be as convenient as signing in one’s home at any hour of the day or night, every Buyer benefits in countless ways coming into escrow. It is a great comfort to meet and know the very person responsible for conducting the closing transaction which applies their hard earned money into homeownership.

Here at Sepulveda Escrow Corporation, we consider these changes in our Industry a challenge; preferring to accept this as an exciting opportunity to learn and incorporate new procedures into our every-day routine. And with that let me wish each and every one of us the best of luck, whether you navigate through these new times as an Agent, Broker, Mortgage Broker, Lender, Seller, Buyer or Escrow Officer. CHEERS!

Find out more about us at Any Questions? Contact our Escrow Expert! Sepulveda Escrow Corporation (818) 838-1831. Follow our company on Facebook, Twitter, LinkedIn, and Google+.

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