Escrow Officer common mistakes
Escrow Officer · Understand the traps and how to avoid them.
One role has every mortgage power
Originators, lenders, servicers and settlement professionals have different duties and authority.
What to do instead
Identify the actual role and required authorization before deciding what can be done.
Interest rate equals total borrowing cost
Fees and other included costs can affect the relevant disclosure measure.
What to do instead
Separate the note rate, APR, payment, cash to close and total repayment.
A signature cures every disclosure problem
Signing does not establish that all required terms, information or timing conditions were satisfied.
What to do instead
Compare the actual records and applicable requirements.
Using a value without defining LTV
Underwriting and exercise conventions can use different valuation inputs.
What to do instead
State the numerator and denominator before calculating.
An email authenticates a new account
A familiar name and transaction details do not verify a payment change.
What to do instead
Use independent authentication and the authorized approval process.
A positive balance permits disbursement
Funds may be restricted, disputed or not yet available under the instructions.
What to do instead
Check entitlement, cleared status, conditions and authority.
Force a reconciliation to agree
An unexplained adjustment can conceal a missing or duplicate transaction.
What to do instead
Investigate the source records and make only supported corrections.
One state rule applies everywhere
Licensing, foreclosure and settlement arrangements can differ.
What to do instead
Use the actual governing jurisdiction and applicable federal conditions.