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Posted by Nicole_NCali on 11/22/04 11:27am
Msg #11849

Training purpose:is it out the box to request loan documents

I have done a couple of signings and each set of loan docs are different. I was just wondering if any notary has requested loan docs from several lenders just to familiarize themselves with the areas that need to be initialed and signed. The explanation of the docs are not my issue (even though I am not responsible for explanation), but due to me be an ex IRS agent, I try to explain the 4506 and the sellers closing docs, the tax implications for a gain if asked, but in a very general explanation. So far the title companies reps have flagged the forms, but after reviewing one packet, I noticed that, my rep did not flag a certain sheet, fortunately I caught this prior to the signing, I try to review each packet before I leave to my appointment.

Reply by CaliNotary on 11/22/04 12:26pm
Msg #11854

I know that there are some companies out there who have sample docs that they can send out but have no idea what percentage of lenders will do this.

It sounds to me like you're doing fine. If you're able to catch things that they forgot to flag you obviously know what you're doing. Most sets of docs are pretty similar and it's easy to identify what needs signing or initialling, even when the docs aren't flagged. Just continue to do what you're doing and it'll get easier and easier every time.

Reply by Nicole_NCali on 11/22/04 12:51pm
Msg #11858

Thanks Calinotary for the encouraging word.

I just don't want to seem ignorant at the signings. I find that when dealing with 300k loans or 75 re-fi, it is my job to be able to explain and catch this stuff. I have one piece of very good advice for the new notaries, read over the documents as if this was a loan that you are taking out. The questions that you have, are some of the same questions that the borrowers may have. It is money and money is important...

Reply by CaliNotary on 11/22/04 1:03pm
Msg #11859

You don't have to worry about appearing ignorant at the signings. If somebody asks you a question that you don't know the answer to, just tell them that you don't work directly for the lender and that they'll have to contact their loan rep for the answer. Most people seem to understand this, but you'll definitely come across some that will just ignore it and keep asking questions. In which case you just keep repeating "call your loan rep".

Ideally, you should eventually get to the point where you're able to give a general explanation of what each document means, and you should be able to point the borrowers to the specific documents that will answer a lot of their questions. The one thing that we can never answer are "why" questions about the specific figures in the loan.

Reply by Stephanie/CA on 11/22/04 1:08pm
Msg #11861

It is my understanding that as a Notary Public/Signing Agent, we are there to identify the signer and complete the notarial wording. To read the contents of a document and to explain any question the borrower has regarding the contents of the docs would be illegal and considered the unauthorized practice of law (UPL).
I never read the loan docs as if it were docs for a loan I am taking out.
That simply is not our job regardless of what state we live in.
I believe that is very risky as a Notary Public/Signing Agent.

Reply by CaliNotary on 11/22/04 1:25pm
Msg #11862

The types of questions that I answer don't require reading the loan docs. But I don't think answering general questions can be considered UPL. For example, a common question I get is when the borrower sees the APR and wants to know why it's not the interest rate they were quoted. What I'll do is point out the interest rate on the note and explain why an APR is higher than the interest rate. My answer is the same to everybody that asks, no matter what the documents say.

As a notary public we are there to identify the signer and complete the notarial wording. But as a signing agent we are there to also identify the documents to the borrower. We should not explain the note to them, but we should be able to tell them what a note is.

Reply by Stephanie/CA on 11/22/04 3:03pm
Msg #11865

CaliNotary,

I agree with everything you have said....identifying a loan doc to the borrower is acceptable, or telling them which document has info which will answer their question (s).
I just got the impression that Nicole suggested going a little further in response to borrower's questions. (Customizing each response to the borrowers; something that you don't do).

Reply by Nicole_NCali on 11/22/04 4:28pm
Msg #11867

No, I am not explaining the document, but in some documents, if you are not very familiar with it, you need to be able to identify the language that answers a borrowers question. For instance the APR question, a person who see's this inflated number would not be able to direct the borrower to the correct apr for their loan. I don't practice law, but I am a tax preparer and I do direct the borrower to the lender, but some of the questions that they ask are simple. Calinotary is right, the NNA NSA certification is not sufficient and I have been doing my own research on the documents found in loan packages. It is tedious, but has been very fulfiling.

Reply by Lisa-CO on 12/30/04 11:48am
Msg #15002

Where have you been doing your research on loan documents?