I am looking for a general idea on your closing processes in CA. One of our loan officers is stating that we are putting "NY pressure" on CA home purchases by sending out closing documents and funds the same day. I know CA can be slightly different as there is the use of escrow companies but I cannot wrap my head around any issues this may cause. He said it is customary to get the docs out and have the borrower sign at any time and then fund the loan at a later date. That the day the docs are dated do not have to match the date signed. That just doesn't make any sense to me. Maybe it is my NY state of mind. Can anyone assist in disclosing their CA home purchases closed by an escrow agent? Any help would be greatly appreciated. Thanks in advance.

Being a CA person...the loans docs should be dated the same day they are signed, especially in this electronic age. What you do need to watch out for is not to charge interest until the funds are distributed from escrow (Cal. Civil Code 2948.5). A majority of the time, the funds are not distributed from escrow on the same day the docs are signed.

Thanks Reg Warrior. I am aware of the per diem requirement and typically if we are informed the loan was not disbursed within the day of the signing or day after we would correct the per diem and send out a revised CD and refund to the borrower.

When do you typically fund a purchase loan?

We forward funds to the escrow company within 24 hours of signing, it all depends what time of the day the docs are signed. If signed in the morning, funds are usually sent to escrow that afternoon. If signed after at Noon, then funds are normally sent the next day to escrow.

If the loan is subject to Rescission, we won't disburse funds to escrow until after the three day waiting period.

So we are pretty much on the same page. That is good to know. Thanks again.