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Mortgage Finance Department Prevents an Expired ID Closing Nightmare

By Rosemary Liuzzo Mohamed


The Mortgage Finance Department was recently faced with a closing dilemma under the United States Patriot Act: the borrower’s photo ID was expired. Adam Leitman Bailey, P.C. had received the file from the lender and was told the closing would be in two weeks, on a specific date. In true closing fashion, the borrower’s rate lock was expiring on that day and her seller needed the proceeds from this transaction to purchase his new home the next day.

Thankfully, the attorneys at ALBPC always advise a borrower at the inception of the file that they will need a valid, non-expired photo ID for the closing, and request a copy. The borrower called us frantically when she discovered both her New York Driver’s License and United States Passport had expired. Under the United States Patriot Act, the neither the title company nor the mortgage lender will close without a valid, non-expired form of photo ID for the borrower. Luckily, the borrower had alerted us to this issue right away and we had two weeks to tackle it.

The firm’s attorneys quickly researched how to obtain an expedited driver’s license or passport and discussed both options with the borrower. Being that she did not have travel plans booked within the next 14 days, she was not eligible to obtain an expedited passport. However, since her driver’s license had not been expired for two years or more, she could go to the Department of Motor Vehicles (DMV), complete the necessary forms, take a vision test, pay a small fee, and receive a temporary renewed license with a final to follow in the mail within two weeks.

ALBPC printed all of the necessary forms for both the borrower’s driver’s license and passport renewals, seeing as she would need to do both anyway. The borrower came to our office and we guided her through the forms, notarized her documents and helped her to gather all of the necessary items she would need. We made her an appointment at a nearby approved vision center to obtain a quick vision test without waiting in line. We also made her an appointment at the nearby DMV, only a block away from our office, as she felt more comfortable renewing in person rather than online.

With the firm’s help and guidance, the borrower successfully obtained her renewed driver’s license within the two week time frame and was able to close on her new home as planned. Had we not requested to see her photo ID in advance of closing, the closing would likely have been delayed and cost both parties penalties and fees.

Rosemary Liuzzo Mohamed represented the borrower throughout the closing and ensured the closing went ahead as planned.

Related Attorneys

Rosemary Liuzzo Mohamed

Adam Leitman Bailey, P.C.

NEW YORK REAL ESTATE ATTORNEYS