what is wet settlement act?

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jav4

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Post Posted: Thu Mar 29, 2007 12:11 pm    Post subject: what is wet settlement act?
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what is wet settlement act?
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Hoberman

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Post Posted: Thu Mar 29, 2007 12:31 pm    Post subject:
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According to this law, settlement agents are required to disburse the funds on or before the closing date.
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Post Posted: Thu Mar 29, 2007 2:16 pm    Post subject:
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At the time of settlement sellers want their money as early as possible after signing the deed. Most expect to receive a check at the settlement table.

This law was enacted for preventing delays by lenders in sending the funds to the settlement attorney. Previously what use to happen is that settlement attorney used to hold the closing & then send closing documents to lender for approval. After the documents were reviewed & approved, lender normally used to send a check to settlement attorney. This process used to take 1 or 2 days but in some instances it can also happen that it takes almost 2 weeks.

Wet Settlement Law forces lenders to provide the funds at or before closing in the form of wired funds, cash or certified check at the time of settlement. In return lenders require that the settlement attorney does not disburse the funds until mortgage lien is recorded in the land records.

David
Maria Bello

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Post Posted: Thu Mar 29, 2007 4:17 pm    Post subject:
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Sellers are benefited because of this law as now they are assured that they will receive the funds within two days after the settlement.

Nowadays most of the lenders wire money to the settlement office which helps settlement attorneys to disburse the funds on the day of settlement or the next day. This law has helped in the overall settlement process.

Maria Bello
neuberg

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Post Posted: Thu Mar 29, 2007 4:35 pm    Post subject:
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This law varies from state to state. Like in Virginia, the settlement agent is required to distribute funds within 2 business days after the funds are deposited in their trust account. While in District of Columbia, the funds are required to be disbursed within 1 business day. And in Maryland lenders are required to provide the funds on or before the day closing occurs to settlement company.
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Post Posted: Thu Mar 29, 2007 10:58 pm    Post subject: RE: Wet Settlemet Act
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Hi Jav,

Welcome to the forums.

The term Wet Settlement means that when a person attends the closing in a mortgage loan transaction, the lender or closing agent should be ready to provide him with the funds.

Many states such as Maryland, Virginia etc have enacted laws on Wet Settlement. For example, in Maryland, the Wet Settlement Act requires that the lender must provide the funds at the day of closing itself.

Thanks,

Sara
Jane

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Post Posted: Mon Jan 12, 2009 6:12 pm    Post subject: Wet Funding States
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Are the States of Washington and Idaho Wet Funding States
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Post Posted: Tue Jan 13, 2009 2:24 am    Post subject:
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Hi Jane

As far as I know, States of Washington and Idaho are not Wet Funding States.

Thanks.
Church Lady

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Post Posted: Fri Jan 16, 2009 8:45 pm    Post subject: Wet Settlement Law in Maryland
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Does this law apply to a construction loan for a roof replacement where the out of state lender is requiring that a Morgage/Deed of Trust be in hand before distribution of funds can take place?
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Post Posted: Fri Jan 16, 2009 11:35 pm    Post subject:
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Yes you will be getting the facility of wet settlement laws in case of construction loan in Maryland.
Mary/PCT

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Post Posted: Thu Aug 26, 2010 11:06 am    Post subject: wet settlement state?
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Is Wyoming a Wet settlement state?
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Post Posted: Fri Aug 27, 2010 1:57 am    Post subject:
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Welcome Mary,

I don't think Wyoming is a wet settlement state.

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Post Posted: Wed Sep 15, 2010 2:03 pm    Post subject: Table Funding
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Does Tennessee law require table funding
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Post Posted: Thu Sep 16, 2010 2:38 am    Post subject:
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Hi Y,

Your query has been replied to in the given page:
http://www.mortgagefit.com/tennessee/closingloan-tablefund.html

Take a look at it. Hope it helps you.

Take care.

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