By Lisa A. Tyler
National Escrow Administrator
Today is your lucky day! We have republished the proof HUD does not allow FHA loans to be wrapped. At the end of the article entitled "ALLEN clussive" we have included HUD's letter from 1990 declaring administrative sanctions against title companies and brokers, who have structured and facilitated the wrapping of their loans. Use the article as proof to your customers that you have to turn away transactions that put you and your Company at risk of closing future government–backed loans!
The "ALLEN clussive" story is the perfect segue way into the "EXCLUDED parties list system" article, which discusses how the government debars those industry professionals who ignore the rules and regulations, established for closing and insuring transactions involving the government. Be sure to read about the "EPLS" so you do not end up on the list and jeopardize your career.
The last story "REFERRAL fee" is a reminder no payments can be made to a borrower without lender approval. In this story a borrower employed at JetCity was moonlighting as a real estate agent. The selling broker attempted to divert funds to the buyer/agent through a commission disbursement authorization, but the assistant escrow officer put a halt to the payment when the lender denied any knowledge of the referral fee prior to our notification.