Ask a title officer: volume 2
Aug 26th, 2015 | By FCT
As a followup to our recent post: ; we offer you volume 2, which will examine additional questions asked of an FCT Title Officer via our online newsletter, Broker’s Edge. Here is the dialogue that took place between an FCT customer and FCT Title Officer of three years, Robyn Downie.
My client has a short maturity date on their existing mortgage. How does FCT’s process ensure that my deal closes on time?
Occasionally we do get a refinance/transfer deal through the Platinum program where the borrower’s current mortgage will mature before we can actually close the deal. This can result in unnecessary penalties to the borrower, but moreover, can put your entire deal at risk. And as you know, you don’t make money off deals that don’t close, despite all the work that goes into them.
The first thing we do is remind our broker partners to be well aware of maturity dates before they submit deals to the lenders. In the case of a known short maturity, it is always best practice to advise your client to renew their current mortgage into an open term so that there is ample time for you, the lender and FCT to process the new refinance/transfer.
Secondly, if FCT receives a file and it cannot be completed by the maturity date (i.e. the short maturity date was not made known up front), we will contact you and your client to ensure all parties are aware of the issue. By doing so, the customer will then be able to arrange for an open term with the existing lender.
But isn’t there a risk that my borrower may be lured back to their current lender when they apply for the open term?
Yes, there is always that risk. The bottom line is that your borrower’s current financial institution will use every available touch point, including when we request a payout statement, to make an attempt to retain the borrower’s business. However, there might be a greater risk that the deal won’t close without an open term.
If you need any more information about how to handle short maturity dates, call our Broker Hotline at 1.855.500.3565 and we’d be happy to help you work through any potential obstacles.
Still have questions?
If there is something you’d like to ask an FCT Title Officer please submit your question below. You never know; we might use it in a future edition of Broker’s Edge and/or feature it in an upcoming blog post.
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