Join  |  Login          

Posted by KJ of CA on 4/27/05 1:45pm
Msg #34360

Should Notary explain funding pack & Truth in Lending Act?

An escrow co. has ask me if I am a sigining agent who is willing to explain the funding package and the
Truth in Lending Act to the clients. They stated they are not interested in an agent who isn't willing. Question: In your opinion, how much information should the signing agent be willing to provide to the signers for the escrow/title companies?
Thank you, KJ

Reply by Charm_AL on 4/27/05 1:50pm
Msg #34362

I wouldn't, I believe that's illegal for a notary to do.
All you should do is explain the document.
Right there the lender/escrow co has an out because they can blame you and you could be sued. I'd take a pass on that company..

Reply by Ernest_CT on 4/27/05 2:00pm
Msg #34366

Would you please tell us the name of the company? Thanks!

Reply by Bobbi in CT on 4/27/05 2:27pm
Msg #34369

You need a California answer ...

CA is more liberal than most states in what a non-attorney signing agent may "tell" or "summarize" to a borrower or document signer; i.e., CA had regulations and guidelines for independent document preparers and paralegals.

A straight forward "notary public" cannot explain documents. An experienced signing agent working under a title insurance company or lender falls under different rules.

For example, in CT the attorneys consider it unauthorized practice of law (UPL) for ANY non-attorney to explain or summarize and part of a legal document. That doesn't mean it isn't done by non-attorneys treading in murky waters.

As I said, get some California answers. For guidance, try asking the Title Insurance Company Attorney what they are comfortable with a non-attorney signing agent explaining at the table. I'd love to hear the answer.

Reply by KJ of CA on 4/27/05 3:32pm
Msg #34377

Thank you for the responses. I will do some more research. As for naming the company, I would prefer not to, until such time as I have been able to research and clarify their request.
KJ

Reply by BarbaraL_CA on 4/27/05 4:13pm
Msg #34388

Re: Should Notary explain funding pack & Truth in Lending Ac

It depends on their definition of "explain". Yes, you "point out" on the TIL the APR, finance charges, total payment for the duration of the loan, etc. As for the funding package, I would assume they mean that a funding package is a set of loan docs. Yes, you "point out" the highlights of the documents. You can NOT explain anything that has to do with the funding of the loan, the amounts entered, etc. For that information you refer the borrower to the loan officer.

So... do you explain funding pack & TIL? Answer: "Yes, I explain to the borrower what each document is and point out the relevant highlights".