HAR §4-8-18. Loan closing

(a) The applicant whose loan has been approved shall be responsible for: (1) Providing necessary documents, such as assignment of insurance, and compliance with the loan approval conditions; (2) Providing the department with a preliminary report and a certificate of title, lien letter, or title insurance covering the real property being used as security showing lien position as approved by the board. A title company or escrow company shall be utilized, 8-12 whenever applicable, and the applicant shall be responsible for the costs; (3) Hiring an attorney at the applicant's own expense to draft the real estate mortgage (in fee or leasehold) and other documents, as required. Mortgages shall be submitted to the department of the attorney general for review and approval as to form; and (4) Paying for the actual costs incurred in closing the loan, such as appraisals, lien searches, title searches, document preparation, and any work in connection with the loan that is outside the department's scope of activities. (b) Direct loans shall be closed by the division staff. The borrower shall execute documents before a notary public where required. Execution of other documents shall be acknowledged by the loan officer. (c) The applicable approval conditions of the loan shall be met to the satisfaction of the department. The borrower is responsible for compliance with the approval conditions. (d) The private lender shall be responsible for closing participating and insured loans. [Eff 1/31/85; comp 9/20/86] (Auth: HRS §155-4) (Imp: HRS §§155-4, 155-11, 155-12)