Escrow: Simple Steps to Shore Up the Your Back End in Escrow States
Filed under: Escrow — admin @ 8:01 pm
Simple Steps to Shore Up the Your Back End in Escrow States:
To read the first half of this post, click here.
1. Treat escrow states differently than closing/wet states and put an escrow review process in place.
Escrow review should include receiving the original signed documents back from title/escrow and conducting of an audit of those documents and any outstanding conditions prior to issuing funds for disbursement. If there is missing documentation, make sure you get it before sending any money.
2. When issuing funds to the settlement agent, be sure to recalculate per diem interest based on the date funds are released and the actual recording date.
3. Confirm that funds were in fact disbursed on the day they were sent.
If for some reason funds are not disbursed same day, be sure to instruct settlement agent to return any additional per diem interest directly to borrower and provide evidence that this was accomplished.
4. Lastly, obtain a Final HUD from the settlement agent showing the accurate disbursement date.
The Final HUD is not required to be signed by borrowers in escrow states and is considered a trailing document that is obtained once the transaction is completed, much like the recorded docs and final title policy. You will also find this document to be very helpful when auditors come through your shop.
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