Lenders Instructions (Addendum)

Coast 2 Coast Funding Group, Inc.

Lenders Instructions Addendum

 

Effective Date: Tuesday, April 9th, 2024

 

These instructions are mandatory and non-negotiable. They must be signed by both title and escrow. Please note that each party is responsible for their duties, tasks, and responsibilities only. Alterations to these instructions i.e. notations, stamping of any sort or adding addendums will only cause the applicable transaction to experience delays.

1. Escrow acknowledges that the lender requires a minimum of 48 hours turn time to check in executed loan documents, clear prior to funding conditions and run final compliance-quality control testing. Due to the nature of our business, turn times cannot be rushed or influenced by external deadlines. Please plan accordingly & set proper expectations and allow the lender to complete their internal process.
2. All documents being recorded such as mortgage deed of trusts, grant deeds, interspousal deeds, etc., must have NO alterations made to them with “white-out”, liquid-paper” or “dry-line”. Any alterations must be “lined out” and initialed by the appropriate parties such as buyer(s) and/or seller(s). The restriction of not using “white-out”, “liquid-paper” or “dry-line” to make alterations also applies to all county recording stamps and title stamps. Using “white-out”, liquid-paper” or “dry-line” voids the legal document per our investors and deems the file non-sellable or transferable on the secondary market.
3. Escrow acknowledges that escrow is responsible for lenders losses resulting from Escrow Company’s failure to follow the lender’s closing instructions and Escrow Company will indemnify lender of losses caused by the escrow company’s negligence.
4. Escrow acknowledges they must review the conditional loan approval in its entirety for all underwriting requirements specific conditional items or providing any important notes that would pertain to escrow.
5. Escrow acknowledges that because of not complying with any of these closing instructions, escrow will automatically be placed on the lender’s ineligible list.
6. Coast 2 Coast Funding Group, Inc. to approve escrow’s final estimated closing statement prior to disbursement. The final closing statement must be certified and signed by the settlement agent.
7. Final estimated closing statement to verify hazard insurance and property taxes have been collected for impounds (if applicable) & that any hazard insurance premium and or property taxes due are also showing paid.
8. Transactions must record and disburse within 48 hours of lenders funds being received.
9. Coast 2 Coast Funding Group, Inc.’s funding department will wire the entire gross note amount. Lender fees will not be withheld from the wire. Escrow is responsible to overnight or courier the lender check and closing package upon disbursement. USPS First Class mail is not an acceptable method of delivery. Please plan and account for appropriate shipping costs in advance i.e. prior to loan documents being generated.
10. Settlement agent to send any creditor payoff checks directly to the creditor.
11. All current and delinquent property taxes must be paid prior to or at closing.
12. All hazard or flood insurance policies are to be paid if premium is due prior to or at closing.
13. Settlement agent is prohibited from sending or releasing loan documents to any third party other than a borrower to the transaction without the lender’s written consent. This includes brokers, real-estate agents, etc.
14. Settlement agent is to assume full responsibility for the execution and notary of loan documents unless the lender coordinates the notary services. A notary or notary service must be selected by the settlement agent, not by a third party. The notary must meet the settlement agent and title company’s standards.
15. If a real-estate broker and settlement agent affiliation exist it must be approved by the lender prior to closing.
16. The maximum cash back to a borrower on a rate and term refinance may never exceed $2,000.00.

ALTA Policy required with the following endorsements (if applicable):

1. CLTA endorsement 100 and 116 are required on all loans in areas where surveys are not customary.
2. ALTA endorsement form 8.1 (CLTA 110.9) is required on all loans.
3. ALTA endorsement form 4 (CLTA 115.1) only when property is a condominium.
4. ALTA endorsement form 5 (CLTA 115.2) only when property is a PUD.
5. ALTA endorsement form 6.0 (CLTA 111.8) only when mortgage is a variable rate.
6. ALTA endorsement form 13.1, only when a property is a Leasehold. (CLTA 107.5 is also required in California, Idaho, Nevada, Oregon, and Washington).

Supplemental Closing Instructions (required by lender’s warehouse facility)

In addition to all other loan closing instructions, and superseding any instructions to the contrary, Coast 2 Coast Funding Group, Inc. hereby instructions the closing attorney or title company which receives the proceeds from the mortgage loan, which is the subject of these closing instructions, (hereafter, the mortgage loan) as follows:

1. You are hereby expressly authorized by Coast 2 Coast Funding Group, Inc. to perform closing services in connection with the mortgage loan as its agent in the loan closing.
2. First Tennessee Bank (the bank) is the warehouse lender in this transaction. The bank will have a priority security interest in the mortgage loan (not in the real-estate). If the mortgage loan does not close, you are either to
   1. Return the un-deposited cashier’s check to Coast 2 Coast Funding Group, Inc.
   2. Return the funds via wire transfer directly to the bank. If necessary, return wire instructions may be obtained from the bank’s manager of warehouse operations by calling (888) 297-0222.
3. On behalf of the bank, Coast 2 Coast Funding Group, Inc. hereby instructs you to hold any documents pertaining to the mortgage loan which may be in your possession for the benefit of the bank, and to transmit same to Coast 2 Coast Funding Group, Inc. and to no other address except pursuant to written instructions delivered to you by the bank.
4. Coast 2 Coast Funding Group, Inc. hereby instructs you to submit the mortgage or deed of trust to the proper recording agent for recording, thereby creating a valid lien on the property, subject only to those encumbrances showing in Schedule B of the title insurance binder.