A settlement agent realizes after closing that they failed to collect the borrower's hazard insurance premium, which was required to be collected at closing. The borrower has already left with the keys. What is the proper procedure?
Correct Answer
A) Contact the borrower immediately to collect the premium before end of business
When required insurance premiums are not collected at closing, the settlement agent must contact the borrower immediately to collect the funds. The loan documents typically require insurance to be in effect before the borrower takes possession.
Why This Is the Correct Answer
When required insurance premiums are not collected at closing, the settlement agent must contact the borrower immediately to collect the funds. The loan documents typically require insurance to be in effect before the borrower takes possession.
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Previous Question
A cash-out refinance closing is scheduled for Friday at 4:00 PM. The borrower received the Closing Disclosure on Tuesday at 10:00 AM via email. The borrower's attorney calls at 3:30 PM Friday requesting a 30-minute delay due to traffic. What is the earliest the closing can legally occur?
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