Currently, individual lenders provide their own unique sets of closing instructions to settlement agents. MBA members as well as representatives of the settlement services industry believe that considerable efficiencies and cost savings would result from the establishment of a uniform set of closing instructions to be used across the lending and settlement industry. Recently, various industry participants have pointed out that uniform instructions also would facilitate eMortgages and help stem mortgage fraud.
Considering the benefits that uniform instructions would bring, a task force of MBA members has been working diligently to develop a draft set of general instructions and a separate draft set of specific instructions to become the standard sets of closing instructions for the industry. The concept is that the general instructions would be applicable to all transactions and would comprehensively describe the obligations of the settlement agent, lender and other parties. Practitioners throughout the lending and settlement industry would be trained in and become conversant with these instructions just as they are with other uniform guidance applicable to the industry. The specific instructions would contain information relevant to the particular transaction, for example, borrower, lender, seller and property information as well as the particular charges applicable to the transaction. In order to facilitate these standards, task force members are addressing any applicable state or local requirements.
Members of the MBA task force and representatives of other settlement services industry associations are actively reviewing the drafts line-by-line and revising them where warranted. MBA members may review the latest drafts of the instructions and provide their input at http://www.mortgagebankers.org/IndustryResources/ResourceCenters/UniformClosingInstructionsComments.htm or by joining the MBA Uniform Closing Instructions Working Group.
|Issue Updates |
|Date || |
|12/13/2007 ||General Uniform Closing Instructions |
|12/13/2007 ||Specific Uniform Closing Instuctions |