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#1652258 - 01/18/12 06:42 PM Backdating
DogLover Offline
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DogLover
Joined: Aug 2003
Posts: 146
Sunny Florida
Is it common for banks to close loans after the renewal date and backdate posting? For purpose of timely disclosures, what is considered the closing date?

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#1652279 - 01/18/12 06:58 PM Re: Backdating DogLover
Truffle Royale Offline

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Joined: Jul 2003
Posts: 17,357
No it is not common.
You are, in effect, forging documents.
That could lead to a passel of trouble if that loan ever went into foreclosure, bankruptcy, etc.

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#1652318 - 01/18/12 07:55 PM Re: Backdating DogLover
RulesFollower Offline
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Joined: Oct 2011
Posts: 185
Doglover, are you closing a loan with a new Note and DOT/MTG or are you executing renewal documents?

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#1652394 - 01/18/12 08:28 PM Re: Backdating DogLover
DogLover Offline
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DogLover
Joined: Aug 2003
Posts: 146
Sunny Florida
We are filing modification agreements. Paying off old note and assigning a new note number.

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#1652425 - 01/18/12 09:01 PM Re: Backdating DogLover
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,931
Galveston, TX
The question of backdating documents is one for your legal counsel. For disclosure purposes, it would be based on when the transaction closed.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1652437 - 01/18/12 09:07 PM Re: Backdating DogLover
RulesFollower Offline
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Joined: Oct 2011
Posts: 185
When we are only executing a Change in Terms and Modification Agreement the docs are dated based on the maturity date or renewal date of the doc we are modifying BUT the customer can sign prior to (must insert "to be effective" verbiage) or after the date of the documents. Unlike executing a Note or DOT/MTG, the deal is done based on the date of the documents, not when the customer signs. These are not HMDA reportable or subject to RESPA (unless going from constuction to perm) so what "timely disclosure" are you worried about?

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#1652454 - 01/18/12 09:08 PM Re: Backdating DogLover
Truffle Royale Offline

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Posts: 17,357
Originally Posted By: DogLover
We are filing modification agreements. Paying off old note and assigning a new note number.
This seems contradictory. Can you clarify please?

If you are modifying an existing, what would you be paying off? Wouldn't you keep the same loan number because you're only modifying that which already exists?

Or are you truly paying off a loan and doing another?

If it's the latter, that sounds like it should be handled as a true refinance with all the disclosures, new appraisal, etc.

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#1652477 - 01/18/12 09:27 PM Re: Backdating DogLover
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,961
Bloomington, IN
I agree with TR. From your explanation it certainly appears you are satisfying and replacing an existing obligation (note) with a new obligation. That is a refinancing regardless what you may classify it as.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#1652886 - 01/19/12 04:43 PM Re: Backdating DogLover
DogLover Offline
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DogLover
Joined: Aug 2003
Posts: 146
Sunny Florida
We are paying off an old HELOC and increased the line using the same collateral. We were worried about the timing of pulling flood. What is the technical closing date? We dated the documents the date of the renewal and the customer signed at a later date. Is the closing date the date of the renewal or the date the customer signed?

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#1652945 - 01/19/12 05:28 PM Re: Backdating DogLover
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,931
Galveston, TX
There is no specific guidance as I don't think the regulators ever contemplated someone backdating a loan. You have little option than to go with the closing date and let the chips fall where they may.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1652985 - 01/19/12 05:30 PM Re: Backdating DogLover
Skittles Offline
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Skittles
Joined: Sep 2002
Posts: 13,963
TN
What did you use as the date to begin your 3 day rescission clock?
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#1652995 - 01/19/12 05:50 PM Re: Backdating DogLover
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,931
Galveston, TX
Oh boy - good catch DS. If the HELOC matured, the new plan would require the RofR. I think they better get legal involved in this one smile
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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