"One of my colleagues told me that he had an experience several years ago in which the doc package was rolling through his printer during the closing."

While this isn't an everyday occurrence right now, sometimes it is - like about 6 or 7 months ago (or especially in 2003) - particularly on purchases, where the borrowers' negotiating position is arguably the weakest. 

Two problems come to mind with respect to most loan packages I see.  First (generally), they contain language that is not state-specific, or worse California real estate concepts that don't apply in my state.  Second (specifically as an example), the FNMA Minnesota mortgage form contains a clause called "Waiver of Homestead," without explanation.  Good luck getting anybody at the lender to explain what this is supposed to mean (it is for bankruptcy).  My point is that typical loan packages often contain contradictory, illegal, unenforcible and nonsensical parts that have to be acknowledged by signature or initial, but can rarely be changed or deleted because the lender itself has no idea why they're in there.