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The document outlines the loan closing and settlement process, including the issuance of Clear to Close and Closing Disclosure, signing of documents, and funding transfer. It details post-closing activities such as loan onboarding, servicing, and potential loan sales or securitization. Finally, it describes the loan payoff events, including full repayment, prepayment, and default, along with optional cycles like refinancing and loan modification for hardship cases.

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4 views1 page

Tokkl

The document outlines the loan closing and settlement process, including the issuance of Clear to Close and Closing Disclosure, signing of documents, and funding transfer. It details post-closing activities such as loan onboarding, servicing, and potential loan sales or securitization. Finally, it describes the loan payoff events, including full repayment, prepayment, and default, along with optional cycles like refinancing and loan modification for hardship cases.

Uploaded by

bikramdas18123
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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4. Closing/Settlement
Loan finalization and transfer of ownership (if purchase).
 Clear to Close (CTC): Issued once all conditions are met.
 Closing Disclosure (CD): Sent 3 days before closing.
 Signing: Borrower signs promissory note, mortgage deed, and disclosures.
 Funding: Lender transfers funds to seller/escrow.

5. Post-Closing & Servicing


Loan is onboarded for payment and future management.
 Loan Boarding: Data uploaded to servicing system.
 Servicing: Borrower makes monthly payments (principal, interest, taxes,
insurance).
 Escrow Management: Taxes and insurance paid by servicer.
 Loan Sales/Securitization: Often sold to Fannie Mae/Freddie Mac or pooled
into MBS.

6. Loan Payoff / Final Events


Loan lifecycle ends when:
 Full Repayment: Via scheduled payments or refinance.
 Prepayment: Loan paid off early.
 Default & Foreclosure: If borrower fails to pay (handled through loss
mitigation first). This is loss mitigation taking place of operation of
modification hardship resolvable re-payment plans

Optional Cycles
 Refinance: Borrower gets a new loan to replace the current one.
 Loan Modification: For hardship cases (interest rate or term change).

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