Where can I find the discussion or reg that you are allowed to fund 1 day prior to recording the Deed. E.G. send $ to title company the day before so they can record etc.

Thanks.

Are you talking about a home purchase? Deeds and mortgages are normally recorded after the loan is funded. If you're lucky, it might get recorded on the same day but often as not, the deed and mortgage are recorded asap after the loan closes and the money is dispersed.

Thanks for all your responses, was a bit too brief with my post as I was late for a meeting.

In the case where you have a R/E transaction, let's just say for the sake of this loan a purchase, or a const/perm loan. The customers generally go to the title company to sign - the Title Company usually want their funds prior to recording the Deed. Typically you don't fund until the Deed is recorded, but if you do maybe you have those funds in suspense and don't board until you have confirmation of recording. So, I for the sake of argument, I need to put my hand on "something" that spells out where we're covered - like a one-day exception to the rule etc...

What about having the Title Insurance Company signing an Escrow Letter detailing the instructions and wiring the money to them. That should take care of your Catch 22 situation where you don't want to fund without the deed and the Title Company doesn't want to file without the funds. The Instruction Letter to the Title Insurance Company should be acknowledged by them prior to wiring funds.

Well, you know... we do have some pretty tight controls in place, and we do have our letter of instructions, wire instructions etc. It was noted in a recent audit that the D/T was recorded prior to funding date (by comparing the funding date to the recording date, in some cases compared to the date of the HUD-1) to the recording date shown on the D/T.

Again, typically we do not fund until confirmation of recordation of the D/T. We're taking it one step further now, where we have a stamp on our Boarding Data (boarded by/date, reviewed by/date etc.) we're adding "confirmed recording/date" - and we won't send $ til we have the confirmation.

During the recission period, you are allowed to perfect your documents, you can even charge interest. You just can't disburse. From the commentary of 226.15

3. Actions during the delay period. Section 226.15(c) does not prevent the creditor from taking other steps during the delay, short of beginning actual performance. Unless otherwise prohibited, such as by state law, the creditor may, for example:

• Prepare the cash advance check.

• Perfect the security interest.

• Accrue finance charges during the delay period.

So it seems OK to record early, but if you are giving $ to the escrow company to record I would say you are disbursing.