I've ran this by an attorney; and I'm not buying the response.

Is it acceptable in the lending world consumer, mortgage, or commercial to allow a modification document to be back dated because we're passed the maturity date? Example maturity date 6/30, modification to extend the term only gets approved 7/6, customer comes in on 7/7 and dates the document 7/1 ? The attorney said it's okay to back date as long as it's not to accommodate the borrower and instead is because of the review/approval process, adding that notaries can never back date.

Now, if we're talking about a mortgage refinance with new money, the attorney said it's okay to back date all documents except the ROR.

I can't imagine this being okay, but can't think of any reasons to support it, could we run into problems with the date of the mortagage or note? What are the consequences?

I'm not an attorney and won't get into a long debate, but hogwash.

If you back date the note, how is that not a direct or indirect accommodation for the borrower? You will not be collecting the interest for those days, so you are in essence capitalizing the interest.

Oh, BTW Your Honor. Anon's documents say I signed everything on July 1. I can show where I was in South American on July 1, therefore there was no way I could have signed these documents.

OK, my rant is over. Sorry.

I agree completely-feel like it's gettin awfully thick in here! But this is a highly “respected” attorney...in addition, I’m told, especially on the commercial side that this is an industry standard practice. Otherwise the loans would show up in default status, when they are really pending review. Is this how everyone is doing it????

When I brought up the interest the response: the borrower is asking for an extension, just because it takes us a week beyond the maturity date to approve the extension doesn't mean the borrower doesn't have to pay interest those days, back dating allows us to not loose any interest.

Why would you lose interest? There should be a provision for post maturity interest.

To me it is a moot point. The date of the document, and the date of execution of the document are two separate things. Date of execution is the date upon which to hang your hat.

However, I'm not an attorney, and I don't play one on TV either!

Would you not start your reveiew process for the extension/renewal prior to maturity date of the note. We review our "coming due" report on a regular basis to avoid this problem.

Who was it that said "Mark that Exhibit "A".