| Did you know that the "closing instructions" (the | | | | takes at least 30 days. That's due to the |
| instructions each Title company needs to follow | | | | efficiency in standardized loan docs in the auto |
| when closing on a property) vary from state to | | | | industry. (Though no one suggests that you |
| state? | | | | should try to buy a house in an afternoon!) |
| And did you know that's all about to change when | | | | Benefit 3: The UCI will help protect borrowers |
| the new Uniform Closing Instructions go into | | | | from mortgage fraud. Specifically, there's a |
| effect? | | | | whistleblower clause in the UCI that charges the |
| These new regulations are about to change the | | | | loan professionals to make known to the |
| way you can structure your real estate deals. | | | | borrower any suspect dealings in the transactions, |
| They were designed by The American Escrow | | | | and can make them liable for not disclosing such |
| Association, The Mortgage Bankers Association, | | | | misdealing. |
| and The American Land Title and Trust | | | | Benefit 4: The UCI will help protect borrowers |
| Association who decided to standardize the | | | | from identity theft. |
| instructions to make the whole closing process | | | | Benefit 5: The UCI will help pave the way for |
| work better. | | | | automated processes in the industry, including |
| Real estate investors interested in pre foreclosure | | | | new, online E-mortgages, and reduce the |
| investing, flipping properties and creative real | | | | expenses of operation for mortgage companies. |
| estate solutions should be concerned about how | | | | Benefit 6: Create a fiduciary responsibility for all |
| these new regulations are going to restrict their | | | | title companies to abide by and protect the |
| ability to turn a profit. However, here's a list of | | | | mortgage companies. This would essentially |
| the benefits of these new regulations to | | | | compel title companies to be at the vanguard of |
| homeowners: | | | | mortgage fraud defense and help protect the |
| Benefit 1: The UCI speed up the Single Family | | | | mortgage industry. |
| Home real estate buying process and make it | | | | Once put into place, the UCI will have two |
| more cost effective. E.g., previously, if a retail | | | | profound effects: |
| home buyer changed lenders midway in the | | | | First, the committee feels these instructions will |
| process it would always prolong the closing due to | | | | give consumers a gold-standard protection against |
| the different guidelines from a different lender. | | | | fraud without need of Congressional action. |
| The new standards would prevent delays of this | | | | Second, (and here's where you really need to pay |
| sort by providing a set of closing guidelines for | | | | attention), it will spell the end of "non-traditional" |
| ALL mortgage lenders. | | | | deals-short sales, flip sales, double closings, etc. |
| Benefit 2: The UCI will cut costs by providing | | | | This means there will be a shift back to |
| efficiency. It's interesting to note that buying a | | | | conventional mortgage practices and "traditional" |
| luxury automobile that costs $200,000 can take | | | | investment strategies. |
| an afternoon, while buying a condo that costs less | | | | |