by Doug Jones
One tree can make 16.67reams of copy paper. My office uses three times that much paper each month; therefore we kill at least three trees each month. I checked our last 10 scanned loan files and the average file is 387 pages – a ream of paper is 500 pages.
The real estate transaction uses more paper than a loan transaction – it is a good thing that many communities have tree laws and we use paper to disclose the tree laws !
Years ago, Joe Adamson and I went to a football field and taped a loan file end to end. The loan was over 100 yards long and it was a medium sized file. What is funny about that event is I was taking pictures to show how much paper a loan uses when a groundskeeper came up and warned us that there were swarms of bees that had been harassing people on the field. We looked up and the bees were headed our way. We gathered the file in a big ball and ran to Joe’s car and dumped it in the trunk. We were laughing so hard when we got back to the office that we forgot the file in his trunk. Two weeks later the BRE called and told us they were going to audit our office. The examiner came and he asked to see a file – Joe and I looked at each other and laughed. We realized that the file he wanted was the big ball of paper in Joe’s trunk. So we took the examiner out to his car and told him the story – He also laughed and got a kick out of the story (He probably is writing a blog about this somewhere right now)
That was back in 1991 and today we use more paper for loan and real estate transactions than we did then!
My guess is that more than 50% of the loan officers and Realtors have never read a deed in its entirety. My guess is that underwriters do not look at all the pages in a HOA report. My guess is that 95% of the pages in a loan file or real estate transaction are never completely read. Then, why does our industry continue to demand so many unread documents ? The answer is protection from law suits – if it is in the file then it was disclosed.
Of course there is a better way but which agency will ever allow a better way?