While you may have heard that banks and lenders are managing real estate closings and thus, taking clients and cash from real estate attorneys; the fact is, they are not. Banks and lenders have a vested interest in the property closing. They are not impartial participants and therefore not eligible to facilitate the closing.
Closings can physically take place at a bank, which could explain how the rumors about banks and lenders managing closings got started. But even if you are just refinancing your home loan, a closing agent must be the one to manage the process. Closing agents may be impartial real estate attorneys or title company representatives, not banks providing the loan.
Delivery of the Closing Disclosure Form
Most likely, the rumor about banks conducting closings centers around the decision by Bank of America and Wells Fargo to handle the production and delivery of the new Closing Disclosure Forms (CDF) come August 1. The reasons behind this have to do with the new 3-day deadline for delivery of the CDF.
Under the new TRID guidelines, the Closing Disclosure Form must be delivered to the borrower three days prior to the closing. If it isn’t, the entire sale is in jeopardy. Obviously, lenders want those closings to happen and have an extreme interest in making sure those forms get delivered on time and all other compliance regulations are met.
Taking over delivery of these closing forms gives lenders more control over the process and helps them remain in close contact with the settlement agent, ensuring all of the details and needs are met to make the closing happen. Lenders will now have much more compliance liability for transactions than they had in the past. The fines are severe and lenders cannot afford to make any mistakes. By taking over the delivery of the Closing Disclosure Forms, these banks are protecting their own interests, but they are not facilitating closings. They are merely handling a portion of the paperwork.
Real Estate Attorneys Can Ease Lenders’ Anxiety With EasyCDF
Easysoft Legal Software’s new 100% TRID compliant software, EasyCDF real estate closing software will ease lender anxiety about deadlines and due dates, data accuracy, and compliance issues. EasyCDF will eliminate the paper back and forth that is so common with current closing transactions. Our software supports the full implementation of the new disclosure requirements with its ability to exchange documents and data electronically, even the 1099-S. You will never miss a deadline, or a step, with EasyCDF.
Don’t let lenders take work away from you! Contact Easysoft Legal Software at 1-800-905-7638 to learn more about EasyCDF and maintain control over your real estate closings from start to finish.