I just reviewed a loan package and counted 238 printed pages stuck in a bulging manila file folder. I admit that 97 pages were tax returns but the remaining 141 pages were standard loan application, addendums/borrower documentation/verification and disclosure forms for a VA, self-employed borrower loan. And all the while I thought that we were now in a paperless lending environment. In ’72, when I took my first loan application, I recall 9 pieces of paper in a loan file and 1 of them was the 2 sided, long legal appraisal. Are we nuts? Do the regulatory agencies really think that the Borrowers are any better “informed” today than they were back in ’72? 
Wednesday, August 27, 2014
Regulated Loan Docs Are Growing Out Of Control!
I just reviewed a loan package and counted 238 printed pages stuck in a bulging manila file folder. I admit that 97 pages were tax returns but the remaining 141 pages were standard loan application, addendums/borrower documentation/verification and disclosure forms for a VA, self-employed borrower loan. And all the while I thought that we were now in a paperless lending environment. In ’72, when I took my first loan application, I recall 9 pieces of paper in a loan file and 1 of them was the 2 sided, long legal appraisal. Are we nuts? Do the regulatory agencies really think that the Borrowers are any better “informed” today than they were back in ’72? 
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