Posted by Debbie Greene on 2/17/09 8:39pm
Msg #277837

Sun Shine Closings of FL

FYI: I performed two signings with the same borrower and was not paid a full fee because I was informed about a month later that they only pay the FULL fee if the Loan "FUNDS". So it does not matter if you complete the closing, go through the whole 9 yards, fed., exp., etc., they will not pay the full fee if the LOAN DOES NOT FUND. Which none of us have control over. It also took over 30 days for me to get paid on those closings.

Reply by Kevin/Ct on 2/18/09 4:46am
Msg #277869

If those conditions were not disclosed to you when you accepted the assignment...they are on the hook for the full fee. Disclosing conditions after the assignment has been accepted
( even more so if fully performed) is nothing more than a unilateral attempt to modify the agreement. They would need your consent to modify.

Reply by Janie Kearns on 2/18/09 10:46am
Msg #277903

I have to disagree. When participating in a "mortgage transaction", unlike other notary assignments, if the loan "does not fund" "no one" participating in the transaction is paid. Not the loan officer, title company etc.. that would include the Notary. It is the hazard of the industy.

Reply by docs1954CA on 2/18/09 11:09am
Msg #277908

Disagree...

So what you're saying is: Everyone involved( title company employees) gives back a portion of their paycheck when the loan doesn't fund? I doubt it.Those on a commission basis lose out, too bad for them.That's the risk they take. We shouldn't. Appraisers don't lose out.

Reply by Kevin/Ct on 2/18/09 11:32am
Msg #277912

Re: Disagree...

Excellent analogy.

Reply by Janie Kearns on 2/18/09 2:25pm
Msg #277973

Re: Disagree...

There is nothing to "give back". The title company doesn't earn the premium, the closing fee, the search fee or any other associated with the transaction. The Loan Officer doesn't earn their commission. The appraiser is typically paid up front (fee's collected at origination) therefore is compensated. On my end, as a signing agent, I negotiate with my lender a fee of 1/2 that of the original fee. I don't collect anything for myself, but compensate the SA. The lenders are satisfied with this process. Some however, do not want to pay period. In those cases I typically arrange to compensate for travel time etc.. and it bee satisfactory so far. I also provide instructions to my signing agents to provide the borrower with the HUD 1 first. If there any issues with funds, I want it addressed in the first 5 minutes. Then if the loan doesn't close, you have not wasted your time.

Reply by Kevin/Ct on 2/18/09 11:21am
Msg #277909

Generally the notary is not paid on the HUD 1 from funds disbursed after the rescission period or at the table in the case of a sale. In most cases he is paid subsequent to that time...usually 30 days. His contract to perform services is with an ss or a TC independent of the disbursement. He is a third party vendor in much the same capacity as a title abstractor. The Federal Court of Appeals has already ruled on that issue. I believe it was in the 11th Circuit. The escrowed funds need to be carefully accounted for and disbursed in accord with the HUD 1

It is possible that he could be added to the HUD 1 and paid from escrow disbursement. In which case I would agree with you. However, it would appear that the post to which are responding is one in which she was paid a partial payment, and it was late. If your position were correct there would have been no payment whatsoever. I think there have been enough people on this board complaining about non payment. If your position were true there would be a multitude of signing services and or TC's that would be subject to both civil and criminal liability for RESPA violations/ fraud and misappropriation of escrow funds.

Reply by Sylvia_FL on 2/18/09 1:14pm
Msg #277949

Re:I disagree too!

If the notary goes to the borrower and spends time with the borrower, gets the papers signed and returned, then the notary has completed their part of the contract and should get paid the fee agreed upon (unless they have agreed to not accept payment if the loan doesn't fund). Even if the borrower decided not to sign the papers, the notary has spent time with the borrower - probably more time than when the borrowers sign - and deserves to be compensated for their time etc.

Reply by Sylvia_FL on 2/18/09 1:14pm
Msg #277950

Re:I disagree too!

If the notary goes to the borrower and spends time with the borrower, gets the papers signed and returned, then the notary has completed their part of the contract and should get paid the fee agreed upon (unless they have agreed to not accept payment if the loan doesn't fund). Even if the borrower decided not to sign the papers, the notary has spent time with the borrower - probably more time than when the borrowers sign - and deserves to be compensated for their time etc.