Most Mortgage loan documents haven’t changed since the 80’s. Which ones would you change? With the advent of the Closing disclosure, the HUD and the Truth in Lending were eliminated. But, did that really improve the loan industry? It’s the same information in a different form. Personally, I liked it better the old way. The music was better in the 80’s as well, but that’s a different story (or song).
Then we have Deeds of Trust. Each one is a different length. They range from two pages to 54 pages. Wouldn’t it be easier if there were a standardized length for a Deed of Trust. And who is going to sit and read all 54 pages and actually understand it.
Next, the 1003 always has wrong information in it. Shouldn’t it be required by law to double check your work if you work in a Mortgage or Title house?
The Signature Affidavit is another document I don’t like. If you have a legal name, you should use that name on all of your documents. It’s too complicated if you keep changing your name around with variations. Mathematicians like to have a single name for an entity. The minute you have multiple names it becomes difficult to identify that entity especially if writing computer programming code. Personally, if your last name is a common name like Smith, Gonzalez, or Hussein, you should definitely use a middle initial. But, life is easier with email addresses. A single email address cannot be assigned to more than one person. Personally, I think that the government should make us have an official registered email address that they patrol for spam. That way, we can be reached without having to go to the mail box. Times are changing, but our government and loan brokers are not.
The Flood Disclosure is another document that I find funny. I think it would be ironic if you spilled your Pepsi on a flood disclosure of all of the documents in the stack.
Speaking of irony, hairstyles have gotten shorter since the 80’s, but loan document packages seem to have gotten longer — and with more fax backs.
I think that loans need to be simpler and that the government should step in and have some standards. But, in the mean time, we’ll do what we can. Let us know if there are any changes to loan documents that you recommend.
You might also like:
Ken’s tips for the Closing Disclosure
The 4506, Name Affidavit, Deeds, and more documents explained