Groups Unveil Uniform Closing Instructions

The Mortgage Bankers Association, the American Land and Title Association, and the American Escrow Association have announced the development of uniform mortgage closing instructions.The instructions, which are being proposed to members for comment, are designed to improve efficiencies and lower costs by replacing numerous instructions with two standard sets, and to help stem mortgage fraud and facilitate automated mortgage originations, the associations said. When finalized, they will not be required to be used by lenders but are likely to be widely accepted, the groups said. "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, the 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."