Posted by Hal Cline on 6/8/08 9:28am
Msg #250428

URGENT:HELP FIGHT Proposed RESPA Change That Could Harm US



By NNA Staff
[e-mail address]
NSA Now: Issue #107 — June 2008


There is still time to speak out and oppose a proposed change to the Real Estate Settlement Practices Act (RESPA) that could effectively put most Notary Signing Agents out of business and create a new monopoly for lawyers, who would be the only ones qualified to conduct real estate closings.

The deadline for public comments has been extended to Thursday, June 12, 2008, and Signing Agents are strongly encouraged to express their concerns electronically through the Federal eRulemaking Portal.

The proposal, drafted by the U.S. Department of Housing and Urban Development (HUD), would require anyone conducting a mortgage closing — including Signing Agents — to read a script outlining the terms of the loan. Signing Agents also would have to explain these terms to the borrower — a clear violation of notorial laws and ethics.

The NNA has urged HUD to modify this requirement so Signing Agents will not have to explain loan terms.

To submit comments about the proposed RESPA change:

* Go to www.regulations.gov
* Enter “RESPA” in the “Comment or Submission” field.
* Click “Send a Comment or Submission” under the entry “FR-5180-N-02: Real Estate Settlement Procedures Act (RESPA) Proposed Rule To Improve the Process of Obtaining Mortgages and Reduce Consumer Settlement Costs: Extension of Public Comment Period.”
* Enter comments as directed on the page.

The NNA has prepared formal comments which have been sent to HUD. Please take a moment to read this document, and then send comments to the agency in your own words by the deadline of June 12. It’s important for comments to be unique since template responses are treated as one single response.

Reply by LisaWI on 6/8/08 11:52am
Msg #250434

OK, first I dont believe this is going to put us out of the picture. My opinion is, there is a hiddent agenda for the NNA in pushing this issue. Maybe they are scared of something in this proposal that will interfere with their operations and also their well being as a company.

Something just isnt clicking with this. And clearly they are not defining the roles between a Notary and a Signing Agent. Which is it? Are you just a Notary or are you a Signing Agent, or are you a Notary/Signing Agent, which are two specific roles when sitting at the table with the borrowers.

IMO, by what they are stating, a closer at a title comp, etc would not be able to perform their job either because they are a notary and according to them (the NNA), this is a "clear violation of notarial law and ethics."

Looking foward to everyone elses responses.

Reply by JanetK_CA on 6/9/08 12:20am
Msg #250487

Actually, if this was a true cut & paste and not just a typo, it said it was a true violation of "notorial" law.... That could speak volumes alone!

Reply by MikeC/NY on 6/8/08 12:06pm
Msg #250436

Re: URGENT:HELP FIGHT Proposed RESPA Change That Could Harm

This has been discussed here before, and the the general consensus seems to be that it's a non-starter.

Reading a script prepared by someone else is not UPL; preparing the script might be, but the SA is not being asked to do that. The explanation of the loan terms is included as part of the script, so again, just reading it is not UPL. It might be UPL if you were to detour from the script and start adding your own thoughts and opinions - but you're not being asked to do that.

Reply by Bob_Chicago on 6/8/08 1:00pm
Msg #250442

Not UPL, but it is a major PITA IMO n/m

Reply by Lee/AR on 6/8/08 1:13pm
Msg #250443

Re: Not UPL, but it is a major PITA IMO

Sincerely doubt that it would add 2 minutes to a signing. Much of the script would not apply to 'this' loan. (If it's a Fixed rate, the ARM info is unneeded.) However, I still believe that it should be 'read' by the entity who produces it--which is not the notary. Ditto comparison between GFE & HUD. "Hey...lookie here--there's a difference---but I dunno why" doesn't seem to cut it.

Reply by Bob_Chicago on 6/8/08 1:43pm
Msg #250444

Determining what parts are not applicable , might be UPL.

Have not yet read info in detail, but I think that "closer" is req to read entire script.
Not advocating this, but I would expect that after about 10 seconds of
hearing NSA droning on , bwr will be asking where they can sign to say that
NSA DID in fact. read entire thing. Sort of "Let's not read it , and just say that we did"

Reply by MichiganAl on 6/8/08 2:10pm
Msg #250447

Re: Determining what parts are not applicable , might be UPL.

Actually, the script says "choose one of the following" so we don't read the whole thing, just the one that applies based on whether it's a fixed rate, adjustable rate, adjustable rate with discount points, etc (I thought the same thing at first). I would guess that the figures will be filled in only on the script that applies, so we won't be making any kind of legal determination, just choose the one that was already chosen for us.

I agree that what you say about the rest of the script is true. You'll lose the borrower 10 seconds into it. Others will just say read it yourself and sign, and some will as you say just not read it but say they did. I like much of the RESPA reform, but I think the script is impractical.

Reply by BrendaTx on 6/8/08 12:59pm
Msg #250440

Hal, thanks for sharing what you find out...but yeah,

it's been discussed...and it is my own and humble opinion that the only reason the NNA is sending out notes is because they want to look like they *care* about notaries when in reality they *care* about notaries caring about them.

Reply by 101livescan on 6/8/08 3:35pm
Msg #250448

Re: Hal, thanks for sharing what you find out...but yeah,

AND BUILDING THEIR CONTACT LIST of notaries who are not yet members so they can plague them with emails and junk USPS mail...membership has no doubt slipped...how many people at LA annual convention, no as many I suspect as in previous years due to high CO$T to travel. It's great to see members of this board scrutinizing the impact of this on notaries nationally!

Reply by MichiganAl on 6/8/08 1:55pm
Msg #250445

Please don't let the NNA do your thinking for you

Tell us in your own words why you think these changes will create a monopoly for lawyers. Have you even read the proposed changes? Tell us how reading a script is UPL. The NNA says it will put us out of business, but it's funny that they never say exactly how. Please don't just copy and paste their self serving propaganda.

Reply by Carmen/123 on 6/9/08 8:37am
Msg #250506

A good friend of mine who is a HUD attorney says ....

that if the Agency gets enough negative responses from the industry, it won't go through with the proposed rule change. So please give your response to the change by the 12th. She also wonders if the banking lobbyist are behind this???

Carmen