Posted by la, CA on 6/3/05 10:29am
Msg #42074

Do I get paid if the borrowers cancel the loan?

Hi, I just did my first signing yesterday, and when I arrived at the appt. everything was fine, until the borrower saw the APR, which was higher than what was quoted to him. He became a bit upset and very concerned since he has never refinanced before. We called the loan officer and he was unable to convince the borrower that the previous APR was just an "estimate" and was not intended as a guarantee of his actual APR. The borrower told him he did not wish to sign and I was getting ready to leave, but then he asked me how long did he have to think about the new APR. I explained to him the Right to Cancel, and how he has 3 bus. days if he decides to change his mind. He said he would sign after all and he would consider the new APR over the next day. I clearly explained to him how the RTC works and how exactly to go about it.

My question is, since I did my job and I notarized his loan and obtained all signatures, if the borrower decides to use the RTC will I still get paid for my job? I looked on the SS website to read their contract, and nowhere on there did they have any wording about payments to notaries if the loan is not funded. At this, I was also wondering since there's no wording on their contract to this regard, would I have a better chance to fight for my fee?

I feel so dumb for not asking when I got the call from the SS, but being new and nervous, it totally slipped my mind.

Any insight would be greatly appreicated!

Reply by TN Notary on 6/3/05 10:30am
Msg #42075

Yes, you should get your full pay. Unless otherwise noted on your confirmation. What company?

Reply by la, CA on 6/3/05 10:32am
Msg #42076

notaries nationwide

Reply by ColleenCA on 6/3/05 10:44am
Msg #42078

Demand payment if they say they will not pay. You completed your job and from there on it is out of your hands. You do not work on commission. You are an independent contractor working for an agreed upon fee and should receive payment once your job is completed correctly.

Reply by Anon on 6/3/05 10:55am
Msg #42080

If it doesnt say nothing in the contract about no show or non funded loans. You should get paid in full.
Dont worry, just check in the contract when you should get your check, and when its time to receive your check they dont send it. JUST CALL AND REMIND THEM! and keep on calling and tell us how it went. If they dont pay you, say it in this board. They dont want bad publicity, and they read this boards.

Reply by TN Notary on 6/3/05 11:31am
Msg #42084

Don't know about them. But just check to see if they mention anything about refusing to sign.

Reply by Sylvia_FL on 6/3/05 12:17pm
Msg #42092

My question is....

Did you let the borrower know that the APR is higher than his actual interest rate? Did he understand his actual interest rate (which is on the Note?)

Many a time borrowers see the APR and assume that it is their interest rate and is higher than was quoted. Pointing out that it is the APR and not the rate on the Note usually helps.

Reply by la, CA on 6/3/05 1:04pm
Msg #42101

Re: My question is....

To clarify, he had received a previous truth in lending statement which showed the APR a whole point less than what the actual truth in lending statement was. The loan officer explained to the borrower that the APR they used in the previous truth in lending statement they had sent him was just an estimate, it did not reflect his true APR. It was not about the difference between the interest and the APR. I do understand that the APR will always differ from the int. rate. The borrower felt they were not being truthful w/ him because they presented with a higher APR at the time of signing.

Reply by Sylvia_FL on 6/3/05 1:22pm
Msg #42103

Re: My question is....

You know, I have to wonder about some borrowers! They look at the HUD and the settlement cost etc are fine, they look at the Note and the interest rate is fine. Then they see the TIL, and have to question the APR, which is taking into consideration those settlement costs that the borrower has just approved!

The preliminary TIL is just an estimate and based on the estimated settlement costs. (and it is possible the earlier one did not take into consideration all the title co. costs)

Reply by la, CA on 6/3/05 1:32pm
Msg #42104

Re: My question is....

I guess we'll just have to wait and see what the borrower decides to do.