Opinion ID: 1280130
Heading Depth: 2
Heading Rank: 1

Heading: Loan Closing Matter

Text: Respondent was retained by a client to act as a closing attorney in the refinancing of the client's home. When respondent learned the client would not be available on the date originally scheduled for the closing, he provided the loan package to the mortgage broker. The mortgage broker took the loan package to the client's house to be executed over the weekend. Respondent admits he was not present when the loan documents were executed by the client. Instead, respondent requested that the mortgage broker contact respondent on his cellular phone if questions arose regarding the transaction or the execution of the closing documents. Respondent instructed the mortgage broker to make sure the client understood her three day right of rescission and to make sure the borrower understands that the settlement statements in the package were prepared by the lender and [do] not show all fees to be collected. Respondent instructed the mortgage broker to inform the client that she would have to come to respondent's office and sign a settlement statement prepared by respondent's office prior to the disbursement of funds. Respondent did not communicate directly with the client for approximately eighteen days after the loan package was executed. The client received the loan proceeds prior to discussing or signing the settlement statement that was to be prepared by respondent. As a result of respondent's failure to adequately and timely explain the closing and the disbursements to the client, the client negotiated the proceeds without fully understanding the amounts she would receive as a result of the closing. This lack of understanding led to the client spending funds for purposes other than to pay off a specific debt which was a major reason for the client refinancing her home. Respondent admits that his actions assisted a person, who is not a member of the Bar, to engage in the unauthorized practice of law. He also admits that his failure to directly participate in the closing contributed to the frustration of the client's original purpose for refinancing her home.