The Confusing Closing Process: Rush to Extinction

From a new commentator on our pages:

I just glanced at a few posts and have to wonder if folks are aware of the typical loan closing process that was in place in CA the last several years. Usually a mobile notary would be dispatched to a borrower’s location with two stacks of loan documents and a very brief window of time to “sign up” the borrower.

Borrowers would be given NO opportunity to read or review loan documents and this is precisely how brokers/lenders managed to obtain signatures on documents with information altered by the broker/lender.

I saw this practice first develop in the 1980s when I was a banker and watched it become the standard in the mortgage industry by the time I left banking in 2007. Including a stint at sub-prime lender Aames the very idea that borrowers had ANY meaningful opportunity to read and review their loan documents is so far removed from the truth that it is actually nauseating.

I was able to work on or analyze several loan origination systems and am truly amazed that the public has not been educated as to the absolute control exercised by brokers/lenders over the loan closing process. I make allegations about this process in every complaint I file wherein it is appropriately alleged. The world needs to know about this so the true culprits in this meltdown, the brokers and lenders, can be brought to justice.

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