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Closing Error Prevention and Recovery

13 minPRO
3/6

Key Takeaways

  • Three-layer error prevention (templates, pre-closing review, second-party verification) reduces errors from 5-8% to under 2%.
  • Ten common closing errors range from minor (name misspellings) to severe (incorrect legal descriptions).
  • Error recovery timeline ranges from 1-2 weeks for minor corrections to 2-12 months for severe defects.
  • Immediate action within 24 hours of error discovery prevents minor errors from compounding.
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Test Your Knowledge

1.What is operational risk?

2.What is a risk register?

3.What is the Recovery Time Objective (RTO)?