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Page 25 APRIL 2015 • VOLUME 19 • ISSUE 12
Streamlining the closing process By Riki Markowitz
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n Aug. 1st, the feds are tightening real estate regulations again. The Consumer Financial Protection Bureau (CFPB) is creating more red tape and even though the trend over the past several decades has been going in the direction of tight, quick closing schedules, the question is, can the industry streamline a closing process that is more bloated than ever? Back before the Great Recession and even before a housing bubble or two between Y2K and now, it could take about three months
to close on a home. This was in the 1980s when automated underwriting, DocuSign, and document sharing services like Dropbox were still science fiction. Along come these advances, coupled with loose regulations, and closings were whittled down almost 50 percent. For more than a decade, 20 to 35 days became the norm. In recent years, as the government piled on regulation after regulation, not to mention the scrutinization of prospective buyers’ bank statements and credit scores – almost to the point of absurdity – real estate professionals are anticipating transaction times ratcheting back up 35 to 40 days. The onus to streamline the closing process can only fall on the shoulders of those in the trenches, not legislators working to shelter consumers. REALTORS, lenders, and title agents have no choice but to be compliant with new regulations. So it’s important that everyone work together to establish protocols that won’t cut corners or add new layers to a process already
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inundated with paperwork, policy redundancies, and for some agencies, drastically reduced manpower. This summer when title agents will be required to receive signed disclosure documents from buyers three days prior to closing, it will be just another bureaucratic snarl to deal with. And then there’s the threat of restarting the entire process if a single document is unaccounted for or an impossibly tight deadline is overlooked. So it’s no wonder industry professionals are at their wit’s end. It’s not that anyone is rallying to get buyers into their dream home within weeks. That may never be realistic. So now, there’s a push to cautiously bulldoze through the pre-closing stages. A few insider suggestions for streamlining the closing process include partnering with trusted colleagues and utilizing file-sharing tools.
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agree on is for agents and mortgage loan originators (MLO) to establish professional relationships with one another. This type of partnership can reduce communication and paperwork glitches. Also, when you work with someone you know, transactions tend to be friendlier and less adversarial. “The lender is really the one that has control over almost all parts of the transaction,” says Shawn Rooker, a sales consultant with Realty Austin. “The lender is the pivot point where all problems can come from,” but also, ultimately, where the solutions are addressed and han-
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