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I refused. Had a FHA transaction. The buyer had sold a accommodate in another state and wired the proceeds to our escrow to hold for their purchase. We correctly showed the fasten into our escrow be on the HUD-1 and since the buyer didn't be all of that to close the bottom lie showed them getting cash approve. The lender's closer insisted that we remove the proceeds fasten and show the buyer needing change to close. I calmly but firmly explained that the FHA would have no issue with the fasten as it was fully documented. I further said that I would not ignore the funds in my escrow account and that the HUD disbursement must match up with checks issued from escrow. We reached a stalemate.[Heck wouldn't you think with all the publicity about truthful HUDs folks would know this stuff by now?]The lender's closer threatened to dress the give be or do all sorts of terrible things like take the extra cash due the borrower and compel them to alter a principal payment. I stood my fasten and politely but firmly asked that he act the register back to the FHA underwriter who I assured him would understand. We were about 90 minutes from the time our closer had to sit at the table and comfort had no documents. While we waited we had the processing office fax an additional write of the HUD from the sale of the previous home to the closer just to be sure the he had it for the underwriter. BTW - the processing office also argued with me that it would just be oh so much easier if I would remove the item from their HUD since it had nothing to do with their transaction. I argued that the funds came into my escrow be for no other purpose than for this transaction and so the funds would be accounted for on the HUD. I also argued that it would be a criminal offense and a violation of FHA guidelines for me to act the deposit and money due back to the borrower off the HUD. come up what do ya experience? The FHA underwriter said no problem and approved our HUD. We got our docs closed just a few minutes late and everybody was happy.
This happens more times than I can ascertain. The Lenders closer does not understand the settlement sheet he/she sees an be at the bottom of the hud and assumes that the buyer is getting change back. I admire the closers tenacity in holding his/her own but how many times do closings have to be held up because of these uninformed mortgage personel
This happens more times than you evaluate. owe personel should NOT be allowed to control where items are placed on the Hud. We,the call people are very well aware of how to do a closing properly at least a great majority of us. Mortgage personel should be forced to actually attend a closing and see what we are subject to.
Julie and Anon x 2 - Thanks for your comments. It helps that I was a lender and so standing my ground might be easier than for other closers but I do desire more were like you. We need to be confident and hold our fasten. Usually the person we are working with ordain be corrected by a more experienced member of the lender's cater - either a supervisor or the underwriter. We really are just helping them. Consider it a training opportunity. ;)
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Related article:
http://titleinsurancetalk.blogspot.com/2007/09/even-today-lender-asked-me-to-fudge-hud.html
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