Real Estate Tip – Lender Liability in Real Estate Closings; Know Your Closer Well
The Consumer Financial Protection Bureau (CFPB) now enforces the Real Estate Settlement and Procedures Act and related laws dealing with real estate closings. Recent CFPB bulletins and directives make it clear that not only can lenders be held responsible for the errors of their third-party closers (the FDIC, CFPB’s predecessor, said that, too) but that lenders are now responsible for assuring, in advance, the quality of their third party closers. In an effort to create a private sector safe haven for lenders, the American Land Title Association (ALTA) designed a Best Practices program. It includes tools for helping lenders determine whether closers have implemented those Best Practices. As lenders seek to meet the government’s requirement that they be more proactive in reducing risks to themselves and their borrowers, examining the ALTA Best Practices program may be a logical next step.
Today’s real estate tip is brought to you by Rick Smith, a LEED Accredited Professional and member of Bernstein Shur’s Real Estate Practice Group and Green Building Team. Stay tuned for more useful tips for real estate professionals.
For more information, contact Rick at firstname.lastname@example.org or 603 623-8700 ext. 8829 or 207 774-1200.