Posted by Signing_Doc on 9/29/06 9:24pm
Msg #149389

collecting funds from borrowers...Who's resp is it to know

if the borrower needs to bring funds to the closing table? My last two signings, the borrowers needed to bring a check to the closing table for me to send with the documents. Tonight's signing, I was informed BY the borrower that she needed to bring a check. She only wanted to confirm the amount, and to whom it would be made out to. I was able to handle that one ok. However, on the way there, I was called by the ss from last night. They received the package and there was no check in it. I advised her that I wasn't informed of the need to get a check from the bo (and neither apparently was the bo). The SS advised me that it was "clearly stated" on the HUD-1. I looked at the HUD-1 (this was not your standard HUD-1, but a HUD-1 titled "Optional Form for Transactions without seller). I had my wife (the loan officer) look at the form. She wasn't able to find it at first, but on page one line 1604 it states "EQUALS: Disbursements to borrower" and the figure was (xxx.xx) (in parenthesis). The standard HUD-1 on line 303 states "Cash (from) (to) the borrower and an amount. The HUD-1 from tonight had a positive figure i.e. xxxx.xx with the area checked "Cash FROM the borrower". This CLEARLY stated to me that there was cash due FROM the borrower.

So, my question is, is it MY responsibility to peruse every HUD-1 to see if there are funds due from the borrower, or is the person who contracts with me to do the signings responsibility? In the past, on my confirmation it states "check due from borrower, please insure it is there in a cashier/certified funds (no personal check)" and they usually state what to do IF the check is not there. HOWEVER, on the past two signings, there was NO indication to me that funds were do. Please let me know if you have come upon this problem in the past and how you handle it. In the case of last night, I believe the borrower's will just wire the funds to the title company.

Thanks "Doc"

Reply by MelissaCT on 9/29/06 9:30pm
Msg #149393

Re: don't have an answer but interested in one

Had one a couple years back @ broker's office. Had no instruction on receiving a check & broker told the guy that a personal check was ok. Hiring co had a FIT about it. The guy ended up having to wire money over, but there were NO instructions & late docs to boot!

Reply by sue_pa on 9/29/06 9:34pm
Msg #149394

I believe that knowing when to collect funds without being specifically told to is the difference between 'a notary' and 'a closer'. That difference also translates into much higher fees. The sematics of the word aren't the issue - the skill level is the difference. Signing Doc, this is not meant as anything against you but I truly believe this is a basic part of the job.

Reply by Roger_OH on 9/29/06 9:51pm
Msg #149399

Agree with Sue...

I routinely check the HUD line, and if it shows BO's owing anything significant, I'll mention it during the confirmation call, and note that they need to bring (usually) a bank check. This can save you a ton of grief later, as noted by Doc above. I'd estimate that about a third of the time, BO's had no clue they even owed, which they can then discuss with their LO BEFORE we meet. I agree it is indeed part of the job.

Reply by NCLisa on 9/29/06 10:05pm
Msg #149402

Re: Agree with Sue...

I rarely have docs for the confirmation call. I'm lucky to have docs 2 to 3 hours before closing. As far as I'm concerned, it is the LO/MB/TC's job to call the borrower and tell them that funds are due at closing, that a certified check is required and who to make it out to. (That was my job as an EO & paralegal, not my job as an NSA). I'm so busy getting docs in order to run out the door that if I even have time to glance at the hud, it's amazing. If the borrowers don't have the check, then I write out for them who to make the check out, the amount and where to send it, and include a note to the TC along with the package.

I've seen a lot of huds, but some companies are using ones that I can't make heads or tails of! Instead of negative and positive numbers they all need the ( ) to borrower ( ) from borrower on them.

Reply by MelissaCT on 9/29/06 10:23pm
Msg #149410

Re: HUD...

In CT, certified checks are only issued for amounts greater than $3500. Some (not all) companies require bank check for amounts greater than $500. If docs are coming minutes before signing appointment time & anything other than personal check is required, borrower darn weel better have been informed by LO/EO (someone other than me) to have it ready. Banks aren't open 24/7, afterall.

Reply by MichiganAl on 9/29/06 10:42pm
Msg #149416

I think it's one of our most basic functions to know how to read the various types of HUDs, show the borrower on the HUD what funds are coming back to them or what funds are due, and to determine if we need to collect a check without needing to be told to do so.

Reply by PAW on 9/29/06 10:50pm
Msg #149418

Re: collecting funds from borrowers...Who's resp is it to kn

Doc... The form you were looking at is a very common form used for refis. As it states, it is for "transactions without sellers". This form is a HUD-1A. You need to learn all about it as well as you do the normal two page buyer/seller form, HUD-1 which can be used for transactions without sellers as well.

I too agree that a "notary" probably wouldn't be able to find where the borrower needed to provide funds at the table, but a "signing agent" should. As you now know, you can determine on either form, HUD-1 or HUD-1A, whether the borrower needs to provide funds. If they do, there should be instructions in the package (may be part of the closing instructions, so you will need to read them) as to who the check needs to be made out to and whether or not a certified check is going to be required. If you don't have specific instructions, call the title company. As a rule of thumb, the "Pay to" should be the title company. Certified funds are typically required if the amount due is over $500. But, each lender/title company can set their own rules, so you need to be properly instructed.

Reply by kathy/ca on 9/29/06 11:01pm
Msg #149420

But, there are time's that an amount will be listed line 303

"cash from BRW", but both TC & BRW say, "nothing due from BRW".

Reply by Signing_Doc on 9/29/06 11:04pm
Msg #149421

"so you need to be properly instructed."

That is exactly my point...we need to be properly instructed. If I had been told that a certified check would be needed in the amount of xxx.xx pay to the order of .........then I would have know to pick up a check from the borrower's. However, I was not "properly instructed" by the ss, of the need to pick up a check, so I didn't check the HUD-1 to insure IF a check was needed. As it was previously stated in this thread, sometimes we don't have time between the time the docs are posted, printed and we are out the door to insure whether or not a check is needed. Last night's signing was just that....at night...and the banks were closed. A good LO, or EO should inform the borrower's of the needs to bring funds to the table so they will have the funds ready to be picked up in the correct form (certified/cashier/personal). If the LO/EO or whoever FAILS in their job to advise the borrowers, then I don't feel that it is MY responsibility to advise them of this fact. It may already be taken care of (ie wired by bank or borrowers). I had a signing the night before this one, and I talked to the LO on the phone. He advised me that they (the bank) would wire the funds to the tc so that borrower did not have to worry about that. This man was on the ball and taking care of his clients.

So, I think the upshot of this is...IF I have the time, peruse the HUD to see if funds are needed, if it APPEARS that they are, contact the ss, tc, or whoever contracted with me to insure that funds ARE needed, the amount and to whom. But Hopefully, the contracting party will be up on what is needed and will inform me in the confirmation or by followup phone call that funds are needed to be collected at the table. QED...Live Long and Prosper...TTFN...End of Report...As you were!

Over and out.

"Doc"

Reply by sue_pa on 9/30/06 4:25am
Msg #149446

Re: "so you need to be properly instructed."

I seldom review a settlement sheet, or any documents for that matter, prior to sitting at the borrower's table. I generally receive my paperwork, print & run. I also agree with you that the borrower should be advised prior to our involvement that money is owed; however, while sitting at the table if funds are owed and they aren't aware of it prior to our arrival, we should know how to take care of the matter - either by adjourning the closing or by giving them instructions on getting and returning the check within a certain time frame. These instructions come from our client - so you either know them by virtue of working with someone for a long time or by making a phone call. I also realize many times it is after hours and no one is available. In that case, I personally would proceed with the closing (unless I had specific written instructions to adjourn w/o collecting the funds due) but I would inform the borrowers they would need to get the check and send it in. You then inform your client immediately in the a.m. Often, the closing will be adjourned because the borrower will refuse to bring cash to the table. A few years ago I had an order from ServiceLink. Generic written instructions came out earlier that week about collecting funds due and adjouirning the closings if borrowers didn't have their certified checks. I had an appt. that Saturday with specific instructions stating the same thing. The borrower had been 'too busy' to go to the bank so I did as instructed and adjourned the closing. That Monday, I received an irate call from SL wanting to know why I didn't get the paperwork signed and instruct the borrower on returning his check - bottom line is that sometimes you can never win.

Reply by David Kral on 9/29/06 11:23pm
Msg #149427

Call Borrow and have it FEDEXed in.

Usually, if you cure it quick, an error can be forgiven. Just get it solved. Callt he borrower with the amount, payee, and address and a FEDEX account number and get it on its way!

Reply by MistarellaFL on 9/30/06 8:09am
Msg #149461

it is our responsibility to collect the ccheck, BUT

it is title's resposibility to let the brw's know it is needed, and how much.
Good grief, by the time we get the HUD's, it is usually too late in the day for them to get a certified check: banks are closed!
If I get a confirmation with that info listed, I'll let the brw know, but I can't guarantee they can get it after 5 PM, ya know?