WE’RE HEARING that trailing documents continue to be a major pain for servicers….
…The problem is the way title insurance policies are made in the first place, Joellen Raiti, a vice president at Nationwide Title Clearing, told me. The “long form” of title insurance policies cannot be issued until after the mortgage is recorded, so the documentation doesn’t even exist until after the loan is made. Similarly, the mortgage security instrument is not created at the closing table, so lenders rely on county recorders to forward the note. Those documents necessarily trail behind documents created at the closing table.”
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