#WhackedOutWednesday – Best Practice Mortgage 101~!! The whole whacked out wednesday theme came about talking with a LO about the stuff that happens with loans. We were actually laughing at some of the most common mistakes and “Gary” said this to me, that’s Whacked Out Wednesday for ya… So right then I called it and knew I was going to brand it. So all my Whacked Out Wednesday video’s have been centered around helping LO’s know what not to do. What best practices there are and mortgage basics to help the LO community.
Today is not an exception, and one I’ve gone over periodically as it seems many LO’s seem to skip one of the most important steps. Retail, Wholesale, it doesn’t matter. This is a mortgage 101, best practice that you should implement. ↓
When I was an LO at Ameriquest and at QuickenLoans I will tell you that this was a requirement to close the loan. The LO had to sign and “approve” the HUD-1. Now days the last item breaking down the fee’s and structure of a loan is a CD. It’s still all the same and a best practice to make sure the LO is the one that is approving the CD.
NOT JUST THE LENDER!!! – In fact in most verbiage of a package sent to escrow/title companies from any wholesale lender, it does say just that. That the LO should be approving the transaction. It’s just overlooked, and many escrow/title’s send the CD to be approved back to the “Lender” prior to sending it the the LO/Broker for approval. That’s backwards in my opinion. And YOU need to be accountable for what you “sold” the client.
Make it a best practice to sign off on the final CD yourself.
As always –