Credit Evaluation School Dec 2022

Reference Guide for Credit Documents

Settlement Statement / Sources and Uses • Shows where loan proceeds are going, including cash out to borrower. • For a sales transaction, will show the purchase price • Will document the amount of cash borrower is contributing at closing.

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Reference Guide for Credit Documents

Title Insurance / Opinion • Title insurance is guaranteed • Title opinion is an attorney’s opinion as to lien priority • Commitment vs. final • Search is based on collateral description • Is the title insurance/opinion the same property as the mortgage? • Identifies the legal owner of the mortgage property • Identifies mortgages outstanding and priority • Identifies real estate taxes and payment status • Identifies any other encumbrances on the mortgaged property

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