When sending final docs on your own file that you’ve balanced, and you have already double checked and verified your work up to this point is accurate, you can follow the below steps to send closing documents to the settlement agent
- Verify your dates. In the closing command center, go to Step 8 and verify that your CD date, document date, closing date, and signing date are all exactly the same. These should never be different for any reason. Remember, this is different from how you do this for CDs, as the CD date is always the day you are sending the CD, but now you are changing it to the day that the borrower is singing their docs. You can also take this time to double check your funding date and rescission date (if applicable).
- Verify your cash to close. You want to make sure that your cash to close is still the same from when you last balanced with the settlement agent. Any number of things can happen between when you balanced and now, so just double check all 3 numbers (1003 page 3, and CD page 3, top and bottom) are all still the same as your f-funding CD.
- Check the CD Redisclosure Summary. Always a good idea to double check that nothing on the file needs to be redisclosed to the borrower. If so, you can make the determination if the COC can be sent with the closing package, or if a new CD will need to be sent to the borrower (APR increases above 1/8th point, program change, etc).
- Run Mavent. Seriously, just always run mavent anytime you send any kind of disclosure on a file. Make sure that you fully understand EVERY warning/alert that you have and determine if you can close with them. You can NEVER close with a fail, unless explicitly instructed by upper management.
- Check your underwriting conditions. You are going to clear all remaining closing conditions on the file before proceeding. To do this, go to the efolder and select Underwriting Conditions from the tabs at the top
From there, go to Prior To and select Closing from the drop down menu. This will show you all of the conditions that you either need to clear or move to post closing.
Most of the conditions should be pretty self explanatory, such as cash to close, max payment, interest rate, etc. A few of them will not be, and there are always weird ones that pop up from time to time. If you find one you’re not sure about, just reach out and we’ll help you determine how to handle them. Any condition that you cannot clear (because it has to do with how the closing docs should be signed, what documents need to be signed, etc) should be made “Purchase/Post Closing” conditions. To do that, open the condition and select these options
- Once all of your conditions are cleared, select “Added” from the status drop down menu. You should see that there are no conditions left
Then, remove “Closing” from the prior to drop down, and you should be left with only “Purchase/Post Closing” conditions
If you still have conditions at this point that are not marked as “Purchase/PC” you will need to clear them, or mark them as Purchase/Post Closing. They are usually just conditions that are closing conditions that didn’t get marked as “Closing”.
- Your file should now be 100% complete and ready to be closed. To send to title, first you want to add your newly created condition list to the closing instructions. To do that, go to the closing command center and go to Closing Conditions in Step 7.
Open this and delete everything that’s currently in there. Then click the paper plus icon
Select Add from Underwriting Conditions and click OK
Highlight every condition and then click Add. These conditions are the ones that you just marked as “Purchase/Post Closer” and these all get sent to the settlement agent so that they can ensure everything is signed the way we want/need it to.
You may also add your own note at the top letting the settlement agent know that the docs can ONLY be signed on the date that they are dated for. Here is what the note that I send them looks like:
- Send to the title agent. Go to RegZ CD just like for sending a CD or sending instructions, hit audit, wait for the Audit screen to pop up. Review any of the audit results for things that don’t make On this one for example, Escrow Company Name Missing is fine, since this is not an escrow state, and CD Issue Date not Today’s Date is fine, since remember, we’re setting the CD date to the closing date, NOT today’s date (if the closing date is the same date you are sending docs, you wouldn’t have this error). Once you’re good with the audit, hit Order Docs.
If you remember when you do instructions, you only send a few of the documents from this list. For docs, you’re going to send everything. The ONLY thing you might un-select, is the Seller CD if you are doing a purchase (we do not prepare seller CDs, so they don’t need this document).
Next save a copy of the Closing Disclosure (or closing disclosure alternate if doing a refi). Double click Closing Disclosure from the list and it will bring up a PDF copy. Save that copy, then close the PDF.
Next hit Add Additional Docs at the top. Many files will require a few extra docs to be added. Any file that has a “*Docs to be signed at closing” bucket should have this added. If you are paying for home owners insurance (such as on a purchase, or if the HOI is renewing on a refi) you will need to add that as well.
Add Additional Docs
Side note, if you were adding a COC with your closing package, you would do it just like this (which is the same process for adding it to a CD) except you would select “Add Encompass Forms” at the top.
- Send to title. When done adding documents, hit the Send button at the bottom
Click the Paper Plus icon to add a recipient for your closing docs. Find the settlement agent from the list, and add them as the recipient. Make sure the email you’re adding is the person you’ve been balancing with, or the email they have instructed you to send the docs to. Make sure that the authorization code matches the ZIP code for the property. In the Subject line, make sure to select Closing Package Review Requested. Then hit Send.
- Complete disclosure tracking. Once everything is finished sending, disclosure tracking will load. Double click on the entry you just made.
At the top left, select Disclosure Type and select Final from the drop down.
You may also save a copy of the closing package by viewing the document at the bottom right and saving a PDF copy ( just like you do for instructions). This can be added to the Zendesk ticket for ease of access, or if you want to send separately to the settlement agent. Hit OK when you’re done.
- Upload your CDs and mark that the file has been complete. Go to the Loan Operating Summary and in the middle area, find these check boxes and check the box “Final Pkg Sent By” and your name should pop up here. This will update encompass to show that the final docs have been sent on this file.
Next go to the efolder, and search for funding. Open up the folder called Funding CD. In this folder, upload a copy of the Closing Disclosure that you saved from Step 8 of this guide.
Next do the same thing but search for Closing. There will be a new Closing Disclosure bucket for borrower pair “All”. Upload a copy here as well.
For this closing copy, on the left side, there is a button that says “Mark as Final CD”, click this button.
Select Other for the signature type, and hit OK.
You are now done! Save and exit the file.