PUBLIC SUBMISSION | As of: November 20, 2009 Tracking No. 803fb1d6 Comments Due: May 13, 2008 |
Docket: HUD-2008-0028
FR-5180-P-01
Real Estate Settlement Procedures Act (RESPA): Proposed Rule To Simplify and Improve the Process of Obtaining Mortgages and Reduce Consumer Settlement Costs
Comment On: HUD-2008-0028-0001
FR-5180-P-01: Real Estate Settlement Procedures Act (RESPA): Proposed Rule To Simplify and Improve the Process of Obtaining Mortgages and Reduce Consumer Settlement Costs
Document: HUD-2008-0028-0007
Comment Submitted by Laurena Psenner, California Escrow Association
I feel strongly that the Settlement Servicer/Escrow Practitioner should NOT be a
part of the disclosure process as it relates to interest rates, yield spread
premiums, and fees in connection with their financing option.
We currently do not have financial input other than the fees for title and escrow
services. Our role should continue to be limited to the preparation of the final
RESPA related HUD-1 Settlement Statement and recordation of the documents.
As a Title Insurer, our fees are posted with the California Department of Insurance,
an Agency that keeps us accountable. We have always been a neutral third
party, complying with the instructions of the principals. The Loan process, other
than the recording of the Deed of Trust, final funding and disbursing of the loan
proceeds, should not even be considered a part of an Escrow Officer's job.
In California, an Escrow State, we only have loan documents signed in our office
as an Accommodation service for the Lender, Bank or Mortgage Broker. I would
encourage Escrow staff and Settlement Servicers to put the responsibility of
signing the loan documents back in the hands of the Lenders. Oh, wait! Perhaps
that's how all this came to be in the first place? Loan Officers that may only make
loans based on their potential income, and not have the consumer's best interests
in mind? Focus on legitimizing that part of the process, and leave the Escrow
practitioner out of it.
I oppose any mandatory "script" that would give the consumer the impression that
the Escrow practitioner and/or Title Company has any input as to the Lender
charges.