Validating sale of mortgage
The provision concerning failure to state the date or place of the acknowledgment dates to the 1987 act, Special Act 87-12.The underlying policy issue is whether, and in what circumstances, a deed that lacks a proper acknowledgment ought to be sufficient to pass marketable title.Lenders have gotten stricter in response to the mortgage meltdown a few years ago.Fannie Mae’s Loan Quality Initiative, which went into effect in 2010, requires lenders to track “changes in borrower circumstances” between application and closing.Fannie encourages mortgage lenders to recalculate debt-to-income ratios just before closing.If a spending spree sends the debt-to-income ratio too high, the mortgage could be doomed.However, standard application and commitment fees will apply for the mortgage loan application.
Changing jobs is another good way to derail a mortgage before closing.
“So if all of a sudden you switch from W-2 to some other kind of compensation, and you don’t have the history, a lot of times that income can’t be included.
*Home Path® is a registered trademark of Fannie Mae.
Rather than validating these errors and omissions after the fact, the legislature should enact discrete revisions to the conveyancing statutes so that conveyances containing such errors or omissions are self-validating.
Proposed language is set out in section 4 of the Commission bill. Subdivision (1) validates an instrument that was not acknowledged or was improperly acknowledged, or was acknowledged by a person not authorized to do so, or his authority was not properly stated, or the date or place of the acknowledgement was omitted.
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Final commitment is subject to verification of information, receipt of a satisfactory sales contract on the home to purchase, appraisal and title report, and meeting our customary closing conditions.