Christina Curtis, 20 years old
You have found a home you want, been approved for the loan you need, and have now entered the final phase of loan processing. You may be ready to start unpacking and decorating, but before you can call the house your own, you must complete one last step: closing on your mortgage. During closing, the property title passes from the seller to the buyer. A closing agent—usually an attorney or official from a title or mortgage company, and not to be confused with your real estate agent—oversees this process, which typically takes place at a title company, escrow office, dating loan documents your home. The mortgage closing process varies from state to state. Your closing agent will explain the specifics of your settlement process, and who needs to be there. This agent acts as a mediator between the selling and the buying party, and ensures that all documents are signed and recorded. Finally, he or she will oversee that all funds, including closing fees and escrow payments, are paid and properly disbursed.
Essentially the docs are all signed and dated for one day prior to the dates on the docs. It is not a situation where documents were "backdated" Any insight is appreciated. Is this a compliance issue? It's really more of a legal issue that causes compliance issues. Documents are improperly dated legal issue that can create "ripple" effects for compliance. If this loan was subject to RofR, for instance, the rescission notice has the wrong beginning and end date. If you needed dating loan documents days between delivering MDIA disclosures and closing, the time gap wasn't observed. Whether documents are backdated or postdated, it's still wrong.
Is there anything in the regulations that you may not back date loan documents? I am trying to prove a point to a Loan Officer. No "official" comments in the Reg that I know of. Search the term back dating and you should find dozens of previous discussions. I consider back dating the same as falsifying a legal document.
More about dating loan documents:
Lawyers who were trained in commonwealth jurisdictions may have an ingrained concept that backdating a document is generally improper, if not illegal. Dating loan documents is reflected in the Linklaters article Execution of Documents: Five Common Questions Answeredwhich offers the following advice for in-house lawyers:. Unfortunately, the article offers scant authority, and a search on Google reveals little else on the subject from the commonwealth world. In the US, however, there seems to be have been much more consideration of the issue at least according to my Google search results. Despite recent controversies surrounding the backdating of executive stock optionsthe general attitude in the US is that backdating is not wrong or rightper se. Rather, it is the use of the backdated documents by the parties or their counsel that may violate the law. In the law of contracts, it is elementary that ordinarily a contract speaks from the day of its date, regardless of when it was executed and delivered. It is of common occurrence in connection with deeds, leases and other contracts that, while they are not in effect at all and have no legal existence until delivered, yet, in respect to the date of delivery, they, in point of commencement, relate back or commence in the future. Such relation back or forward contravenes no principle of law and is determined by the intent of the parties as deduced from the instrument itself.
Nearly every notary public will find themselves in a position where they are asked to backdate a document. Backdating is the act of writing an earlier date on a document. Unfortunately, this is an all-too-common practice in a variety of different fields and industries. Clients whom need documents notarized by a given date may have forgotten or otherwise failed to meet the deadline. Rather than bearing the consequences of missing the signing date, the client may ask a notary public to include a prior date on the document. Backdating a document may seem harmless enough, but under no circumstances dating loan documents a notary public include a date other than the current date of the signing.
Please contact customerservices lexology. I am sure that from time to time we have all come across the vexed question of backdating documents. Is it legal to comply with the request or must it always be refused outright? Alternatively, is there a way of legally trying to achieve the required objective? For example, if a seller had sold his house in December then the seller could have taken advantage of certain tax benefits. However, he only realizes this in January and so wishes to backdate the document to December. The event did not happen during the time period required for the benefit so an attempt is being made to pretend that it did.