Schedule B–II Exception Reviewer Skill Logo

Schedule B–II Exception Reviewer Skill

Reviews Schedule B–II title exceptions one at a time and suggests a closing disposition using lender-style heuristics.

Design Intent

Schedule B–II often contains a long list of exceptions that vary by state, title company, and transaction.

This skill reviews exceptions one at a time and applies deterministic closing heuristics to suggest a disposition and a next step, without drifting into legal advice.

Why This Is a Standalone Skill

Exception review is repetitive, judgment-sensitive work. The language is dense, and the risk is unevenly distributed across items that look similar on the page.

Teams can miss the few exceptions that matter, or spend too much time debating the ones that do not. Consistency also drifts with fatigue.

Isolating this capability keeps scope tight: interpret Schedule B–II exception language using simple lender heuristics, produce a clean disposition, and leave final judgment with the closing team.

Below, we explain where this skill fits in the underwriting workflow, what it can and cannot do, and where human judgment takes over. If you want to explore it hands-on, you can try it later on this page.

Understanding This Skill

Why This Skill Exists

Private lenders rely on title commitments to understand what will remain as exceptions to coverage at closing. Schedule B–II is where most of that work shows up.

In practice, teams review each exception and decide whether it must be cleared, can be accepted, or needs a closer look based on property type, endorsements, and lender tolerance.

The failure mode is simple: a specific lien-like risk is treated as boilerplate, or boilerplate is escalated unnecessarily, slowing closing with little benefit.

Where This Skill Fits

This skill fits after a title commitment is received, when the closing team is triaging Schedule B–II exceptions and deciding what to clear, what to accept, and what to escalate.

Typically used during:
  • Title commitment review (Schedule B–II only)
  • Pre-closing exception triage
  • Clearing conditions before funding
Typically used by:
  • Closers
  • Loan processors (closing support)
  • Underwriting support

What This Skill Can Do

Reviews Schedule B–II exceptions and produces a disposition and next step using lender-style heuristics.

  • Locate Schedule B–II exceptions and review them one at a time
  • Classify each exception into exactly one allowed exception type
  • Assign exactly one closing category: Must Remove/Resolve, Needs Review/May Be Acceptable, or Leave as is/Standard Exception
  • Provide one concise Action Required sentence and one concise Explanation sentence for each exception
  • Apply deterministic signals (amounts, recorded references, payoff/delinquency language) to separate specific risk from boilerplate

What This Skill Cannot Do

This skill does not:

  • Provide legal advice or interpret law
  • Replace the title company, lender counsel, or the lender’s closing policies
  • Guarantee that an exception is acceptable or will be insured over
  • Assume missing context, infer facts not stated, or invent supporting details
This skill produces a structured triage view for human decision-making. Accountability remains with the lending team.

What You Provide (Inputs)

This skill works with a title commitment document (or the Schedule B–II pages) and optional loan context.

  • Title commitment report (PDF or scanned document), or Schedule B–II pages/text
  • Optional loan context (property type, state, intended use, policy type, lender-specific rules)

What This Skill Produces (Outputs)

This skill produces a simple exception-by-exception triage table.

  • One row per exception with a single exception type
  • One closing category per exception
  • One short Action Required sentence
  • One short Explanation sentence

When Humans Must Take Over

Human review is required when:
  • The exception language indicates a current, identifiable lien or payoff condition
  • The exception references recorded instruments, book/page, instrument numbers, docket numbers, or recorded dates that drive the disposition
  • The exception implicates access or legal description defects affecting insurability or marketability
  • The exception disposition depends on endorsements, lender policy, property type, or state-specific closing nuance
  • The output will be relied on for final clearance decisions before closing
Final accountability always remains with the underwriting and credit teams.

Monitoring and Oversight

This skill can make mistakes when exception text is ambiguous, mixed (boilerplate plus a specific reference), or when state and title-company phrasing differs from common patterns.

Most issues fall into operational categories: misinterpretation of exception language, ambiguity about what is actually being asserted, or data quality issues in the underlying document.

Oversight focuses on routine human review of flagged or high-specificity exceptions (amounts, recorded references, delinquency/payoff language) and spot checks to ensure disposition remains consistent as title providers and formats change.

Findings that carry material risk should always be reviewed by a human before any decision or action is taken.

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Frequently Asked Questions