MBA, ALTA® and AEA Develop Standardized Instructions for Mortgage Transactions
November 20, 2007
MBA, ALTA and AEA Develop Standardized Instructions for Mortgage Transactions
The Mortgage Bankers Association (MBA), American Land and Title Association (ALTA) and American Escrow Association (AEA) have developed uniform closing instructions to be used in future mortgage transactions. The instructions are being proposed to members for their comment. The purpose of these documents is to improve efficiencies and lower costs to the industry and consumers by replacing countless sets of instructions with two standard sets. The instructions will also help stem mortgage fraud and facilitate automated mortgage originations. The new general instructions will detail the requirements for all transactions and the specific instructions will provide a standard format for the details of each transaction including borrower(s) names, property address, loan type, etc. When the instructions are finalized they will not be required to be used by lenders but they are likely to be widely accepted.
"The instructions promise to save money and increase efficiency across the lending and settlement industries which will ultimately help borrowers reduce their closing costs," said Ken Markison, MBA's Senior Director and Regulatory Counsel. "It's critical that companies across the industry understand the instructions and provide useful comments so that MBA, ALTA and AEA can move forward to finalize the instructions for industry use."
The new instructions will be discussed during an online workshop, presented by MBA, ALTA, AEA and hosted by CampusMBA, on Monday, December 3, 2007 from 2:00 - 3:30 p.m. ET. The instructions are available to be downloaded for review prior to the workshop at http://www.campusmba.org/products/default.aspx?product_code=E2801716E/REGIS
Registration for the CampusMBA online workshop is open to MBA, ALTA and AEA members, nonmembers, and media on a first-come first served basis. To register and learn more about the online workshop, "Introducing the New Proposed Uniform Closing Instructions," please go to www.campusmba.org or call (800) 348-8653. Because of limited phone lines, registrants are encouraged to share their connections with coworkers.