Posted by Jenny_CA on 9/30/06 8:49pm
Msg #149571

Wondering if anyone received this email from MortgageDocs?

To all vendors,

In the next month you will begin to see our eDoc volume increase. With the anticipated increase, we need to get "updated" eDoc pricing and printer information from all our vendors. We are looking for more aggressive pricing from our vendors for eDocs. Keep in mind that documents will be ready on signSTAT to print before the scheduled appointment and the majority of the time will be ready to print the day before. Not to mention the eDocs will typically be equity loans & lines that including borrowers copies will be approximately 70-80 pages. With the actual costs to print loan documents being low, we expect pricing to fall in line from our vendors in lieu of the unrealistic pricing currently found in our industry.

We'll need three pieces of information from you at this time; 1) we have your base fee for overnight docs on file, so we need your ADDITIONAL fee to print eDocs, 2) do you have a laser printer (inkjet is NOT acceptable), and 3) do you have a dual tray printer. A dual tray printer will allow you to print out the package much faster as the package is mixed with letter & legal and ALL docs must be printed on the correct size paper.

To help you better determine a price that will keep you competitive in our network, we advise that you set your ADDITIONAL fee for eDocs to $15 per loan signing. Obviously, the better the price you can offer the more likelihood you are to get more of the work in your area.

Actual Cost Breakdown Evidence For eDocs:

All items can be ordered and delivered for free to your location from OfficeMax. There are other office supply companies and you could probably find even better pricing than below. We’re using OfficeMax for this example since we have found them to offer competitive pricing with free delivery.

Paper = $.0092/page (less than 1-cent per page for 8x14, 20lb, 92 brightness paper. Only using 8x14 makes this estimate conservative because figuring 8x11 sheets for ½ of the set of loan docs would reduce this estimate by 50%)

Toner = $.0139/page (budget of $125 for cartridge yielding 9,000 pages, a conservative budget as many toner cartridges can be purchased for less than $100)

Printer= $.005/page (HP LaserJet 2430tn, has dual tray, prints 35ppm. Cost of printer is $1000. Monthly volume capacity is 100,000 pages, to establish cost basis for this breakdown we’ll assume you’ll have the printer for 200,000 pages or 2,000 eDocs that are 100-pages. The cost per page is a conservative estimate since it’s likely the printer life will be much longer than 200,000 pages)

Since all other business costs are applied against the base fee, it is realistic to only add actual printing costs to determine your additional cost for printing eDocs. The above cost estimates are conservative and could easily be reduced. However, we would rather be on the conservative side for this example. Based on the above cost estimates, for an 80-page HELOC package, it would cost you $2.25. Therefore, with an additional fee of $10 for eDocs you would earn an additional $7.75 in profit. At $15, you would earn an additional $12.75 in profit per signing. Printing time is estimated conservatively at 10-minutes and at the rate of profit earned for this example you’d earn a minimum of $46.50/hour if you charged $10 to print loan documents. If it took you 5-minutes to print the documents then you’d earn a minimum of $93/hour if you charged $10 to print loan documents. If you charged an additional $15 per eDoc signing your hourly rate to print eDocs would significantly increase.

We look forward to getting the feedback requested above and building a stronger partnership for the future.

If you have any questions don't hesitate to contact us.

Respectfully,
MortgageDocs

Operations Management

Reply by Linda Hubbell on 9/30/06 9:21pm
Msg #149574

Re: Wondering if anyone received this email ... yep.. n/m

Reply by Mary Starling on 9/30/06 9:29pm
Msg #149575

Yes, I have also received this message. Seems like most Notaries are now standing up and requiring our true value in the loan/mortgage industry by sticking to their guns on our fees. All other industries in the world who utilize contractors inquire of the contractors rates and do not dictate their own. If they did this I feel very comfortable in saying that many jobs would be left undone. We all work very long hours; put up with delays that most could be avoided if the lender/signing company really had their acts together; police documents to make sure we have everything our customer needs so that we don't incur loss in payment; drive in weather conditions that can be adverse and at all hours; and walk into a residence or business, alone not knowing of the true situation of our personal safety. (just to mention a few) You came too late to tell me my fees are too costly....Do the loans get closed without the notary? huh

Reply by larry Schaffer on 9/30/06 9:41pm
Msg #149577

Never realized i was making such a killing on e-docs. think i'll try to sub out the signings and just focus on printing e-docs.

Reply by Teddog/CO on 9/30/06 10:30pm
Msg #149585

Never recieved their email. but my responce to them would be "You run your business and I will run MY business!" We are after all Independent Contractors. Good Lord what gall.

Reply by Julie Barrans on 10/1/06 1:07am
Msg #149594

I received the same email message and was highly offended by the comment about "unrealistic" pricing for eDocs in our industry. I absolutely refuse to reduce my fees for eDocs. Once you reduce your fees for one company they all will expect you to do it for them. With all of the hassles that goe along with eDocs $25.00 is the minimum we should expect to get paid. Hopefully all Notaries will be united on this issue and not give in to this kind of pressure. Without us all of these companies would go out of business.

Reply by Linda_H/FL on 10/1/06 10:24am
Msg #149629

Re: If what they say is true...

And all their packages are going to be 70-80 pages (*counting* borrower's copies) that would mean one package is 35-40 pages - for that I can see charging a bit lower - but $15.00? No way - the lowest I'd possibly go is $25.00 for the 70-80 pages (including borrower's copies).

FYI, my response to them was my printer type and my standard e-doc fee - I did not and will not accept the $15.00 nor did I offer a discount. For that money they can continue to overnight the docs AND take the risk that if they make a mistake in the package the signing is now put off for another 24-48 hours. OR, in the alternative, they can have me print out a new, revised, correct package - for my standard e-doc fee.

Reply by David Kral on 10/1/06 3:13am
Msg #149597

Response-Open Letter to Mortgage Docs

1) Computer--They want me to have one that works reliably.
2) High Speed Access-They like to send docs last minute and expect me to be at the client
on short notice
3) Cellphone-Call the borrower. confirm the signing closed, call one there is a problem with the documents etc, etc.

4) Ordering paper, toner, billing, fixing computers, printer jams etc all takes time.
5) My time when your pdf won't print right.
6) My time when to check the printed pdf and notice a bad scan and I am suppose to call you
and wait for you to fix it and resend.
7) My time when I have to wait because your documents are late
8) My time when you cancel the closing at the last minute and I have passed on other closings


Why don't they just look at what Kinko's charges per page. And of course with my purchasing power and volume and can produce it at the same price as Kinkos?

Oh yeah....2000 hours per year * $93 per hour = $186,000/yr. Yikers, I had better start leasing a Merceedes and get a full time tax accountant!

It was signed Respectfully Mortgage Docs Operations Management. It should have been signed Absurdlly Mortgage Docs Operations Management.

---------------------------------------------------------------------------

Dear Mortgage Docs,

Thank you for you kind letter highlight the lucrative edoc portion of the notary document business. Unfortunately, I feel guilty raking in all the wealth.

Look at it this was, you are throwing away $186,000 per year on the ultra lucrative edco printing business, even more if you charge yourself $15.00 per edoc. You should in-source this activity! Then, simply Fedex the documents to the notaries.

Now 2000 hours with one document every 10 minutes is: 2000 hours*60 minutes per hour divided by 10 minutes per document or 12,000 total documents. While the printer is running, you can address the 12,000 Fedex envelops(only one every 10 minutes. Seems reasonable.

So you increased cost would be part time clerks( you avoid paying benefits with part timers) at 2,000 * $8.00 per hour or $16,000. Now a bulk Fedex rate on 12,000 shipments is likely $7.00 per envelop or $72,000. $186,000 less $16,000 less $72,000 equals a profit to your company of $98,000.00! ( Divided by 2000 hours that is $49.50 per hour)

Quick, run into the President's office and present your analysis. No doubt you will receive a big bonus and share in the wealth for boosting Mortgage Docs' profits for the year!

Analogically yours,

Notaries Everywhere

Revenue Analysis Department



PS. Enjoy printing all those documents. You can count on them all being there on time and rolling off the printer smoothly one right after the other. No need to reprint. No need to check scans. No need to call any signing company or be put on hold. No need to stay late as they will all arrive on time from ...well yes you...MortgageDocs signing department.. who could be more reliable than that!

PSS. By the way, I am send you $1.00 in the mail. Hmmm. Your rate of return is infinite. Don't you just feel rich? Now, you can likely open two letter per minute. Wow! You are making $120 per hour. ( You see it is just like printing edocs, you can count on printing one right after the other. ) Therefore, you would be earning $120/hour * 2000 per year so you are making $240,000 per year!

PSSS. Sorry I have to cut this short. I made so darn much money last year on all the edocs that I did, I must go and rebalance all my investment accounts at Fidelity, JPMorgan, Goldman Sachs and Morgan Stanley.

Reply by PJM/MI on 10/1/06 7:10am
Msg #149610

Re: Response-Open Letter to Mortgage Docs

My reply back to them was I cannot, nor will I, cut costs. I loved the part about the paper costs. I wonder when the last time they went out and bought a case of paper. That's my biggest complaint right now...

Reply by sandi42 on 10/1/06 9:14am
Msg #149617

Re: Response-Open Letter to Mortgage Docs

I can't believe that would even send out something like that. Thats an insult.

Reply by LkArrowhd/CA on 10/1/06 10:18am
Msg #149627

Re: Thanks David, that is just the best! Too clever.. n/m

Reply by Teddog/CO on 10/1/06 10:54am
Msg #149633

Please remember!

These companies purchase their paper in large corporate volumns and very large discounts. How do I know ? I think all of us at one time or another worked for corporations. Remember how generous they were about supplies. LOL

I still say they have a lot of nerve telling Independent Contractors how to run their business.
GRRRRR!

Reply by LkArrowhd/CA on 10/1/06 11:35am
Msg #149639

Re: Teddoggie you are so very right, how foolish of them to

compare the lone notary to their office production.....it's like apples and oranges but you know some notaries may buy into their proposal as absurd as it is.... and yes I'm always amazed at the amount of paper the district orders for each site it is absolutely overwhelming.......talk about bulk........oh lordy......by the entire truck load....

Reply by Glenn Strickler on 10/1/06 12:11pm
Msg #149649

Not to mention ..

Saving the charges for overnight docs ....

Reply by Lee/AR on 10/1/06 1:24pm
Msg #149652

Which they get at a vastly discounted rate. n/m

Reply by Gary_CA on 10/1/06 1:35pm
Msg #149654

Maybe not

I've seen the loads of paper... but I've seen some of the most knuckle headed purchasing known to man at my local school district...and they like to take 90+ days to pay which puts some of their vendors in a bad mood.

I wouldn't be surprised in your local school district buys 500 cases of paper and pays more per than you do.

Back to the point at hand... These guys just flunked their MBA too... first of all, we all know that 80 pages is a gross underestimate, for a flat fee. Second, they suggest you can print 80 pages in 5 minutes... yeah right... I mean 5 minutes from the time I start messin with it to the time it goes into my brief case... not five minutes of the printer spittin out paper.

BUT HERE'S THE BIGGY... they show all the profit as hourly earnings (with a number that apparently impresses them more than it does me) TIME OUT... where's the ROI on the paper, toner and printer???

I'll do their edocs for $15...or $10 or $2.50....if that floats their boat. BUT I'm gonna have to add $25-x to my base fee... profit's gotta come from somewhere (I ain't doin this cause I like it better than fishing).

Or maybe we could just form a network and market directly to the lenders and TC's ... what a concept.

Reply by Lee/AR on 10/1/06 2:09pm
Msg #149660

Re: Maybe not...ah, but Gary...

the school district is spending 'tax money'...your money; not theirs. I am quite certain that MD & all of 'em are getting a discount. How do I know? Because I've been erroneously billed by UPS. Trust me, they are getting a tidy break. Let's face it...ya' can't fix stupid. As long as there are NSAs out there who do not comprehend that they are Independent Contractors and act accordingly, these co's will keep trying to reduce our profit while increasing theirs. Just remember that every no-profit signing you turn down puts some dumb NSA that much closer to being out of this field.

Reply by LkArrowhd/CA on 10/1/06 2:44pm
Msg #149663

Re: Lee you are right they get a nice discount there is

simply too much competition for them not to offer great deals on such large orders of paper. However it is true that many districts absolutely don't pay for 90 days but most businesses are aware of this, that deal with school districts and once again rather then have the competition get the business, they are willing to accept such slowpayment terms. School districts do not have a bottomless bank account and they do not receive their funding all at once. Not that I'm defending the ways of school district......but it is what it is.

Reply by Joan Bergstrom on 10/2/06 1:01am
Msg #149716

I might be wrong but I doubt if companies

are buying paper much cheaper than Costco or Sam's Club @ approx $23 for 5000 letter and $18 per 2500 for legal size.

I had posterd early that I found cases of letter size at WalMart in So. Calif for a little over $23.00 without a "Club Membership."