The Loan Tie-In Fee is a fee compensates your escrow company for the additional work required to process having one or more lender(s) in the escrow process.
Below is a comprehensive list (but not all-inclusive) that gives an overview of the additional liability, time, expertise and expense required to
facilitate a successful close of escrow where a buyer will be applying to a lender(s) for a brand new loan.
- Escrow must comply with the loan originator (either the mortgage broker or lender) to help them in preparing their Loan Estimate (LE) disclosure to buyer according to all California and federal guidelines.
- Escrow must submit certified copies of all escrow instructions and amendments to the lender.
- Escrow coordinates and works with Title to order the Preliminary Title Report, review it and distribute it to the parties. Escrow will also provide the lender with copies of the covenants, conditions, and restrictions and the supplemental title reports, if applicable.
- Escrow corresponds with the lender for status and possible new LE tolerance issues during the buyer’s approval process and takes appropriate action, as directed by lender.
- Escrow receives, identifies and responds to all escrow related “prior to document” lender conditions.
- Escrow coordinates the execution of the insurance policy according to lender guidelines.
- Escrow receives, processes and packages lender’s loan documents for buyer’s signature.
- Escrow coordinates the signing of loan documents, including but not limited to setting up the signing appointment, ordering a qualified notary service and overseeing the loan document signing process (a time period ranging from 30-45 minutes to several hours, depending on many factors).
- Escrow compiles executed loan documents in accordance with new lender’s requirements, including one or more
certified copies of all escrow instructions, amendments, receipt(s) for deposit into escrow, etc. and arranges for
delivery to the Lender
Advises title company of all new Lender’s title title insurance requirements and any necessary special
endorsements
Verifies new Lender’s timely funding of their new loan and arranges for confirmation of receipt of wired new loan
funds transfer
Confirms recordation with the new Lender and processes the Lender required final settlement statement
Verifies new lender’s title insurance requirements have been satisfied after the close of escrow