For New Loan Officers - Rules for a Trouble-Free Refinance

  1. Complete Loan Application - checklist of important information
    1. All payoff information including Bank, Loan# and whether there is a prepayment penalty.
    2. Any second loans? Will they be paid off or subordinated?
    3. Home Insurance - Name of company, agent, phone # and expiration date.
    4. Homeowners Association / Management Company's name and telephone #.
  2. Open Escrow
    1. Email, call or fax in order.
    2. Confirm receipt of open escrow by receiving an escrow # or check for email confirmation.
    3. Provide borrowers' SS# and phone #.
  3. When you receive the preliminary title report, review it and report anything unusual to the Escrow Officer.
  4. If Escrow needs to order a subordination, allow 7-14 days to be safe. Escrow will need:
    1. Subordination fee
    2. Copy of original Promissory Note
    3. Loan application
    4. Appraisal
    5. Preliminary title report
    6. New lender commitment letter
    7. Some lenders require a letter from borrower requesting subordination
  5. Escrow should have payoff information at least one week before receiving loan documents
    1. Make sure payoff information is correct.
    2. Was loan sold to a new lender?
    3. Provide typewritten 1003 to Escrow Officer.
  6. When Loan is locked and Loan Docs are in Preparation -
    1. Ask borrower if they are leaving town soon. Notify Escrow Officer to draw Power of Attorney. Lenders usually must approve the use of Power of Attorney.
    2. Notify borrower that Escrow Officer will contact them with regards to signing and encourage a quick callback.
    3. If insurance is coming due, ask borrower to instruct Escrow Officer to pay the premium. Escrow generally wants this paid in escrow to tie up a potential loose end.
    4. If property taxes are coming due, but not delinquent, prior to close of escrow, instruct borrower to not pay the tax bill and that the tax will be paid in escrow subject to new lender instructions.
    5. Instruct borrower to discuss monthly payment of existing loan with Escrow Officer. If due, but not delinquent, prior to close of escrow, it can be paid in escrow. Otherwise, borrower must tell Escrow Officer how payment will be made to fulfill escrow conditions.
    6. In all cases above, communication among borrower, Loan Officer and Escrow Officer must be timely and accurate in order to avoid penalties and duplicate payments.
  7. At signing, instruct the borrower to bring a check book, driver's license or other ID for the notary, and insurance information.
  8. If the transaction needs a QuitClaim or a Grant Deed, notify the Escrow Officer prior to signoff. Allow enough time for grantor signing.
  9. Verify NRCC credit prior to signoff.


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