Posted by nobhill on 1/4/11 3:48pm
Msg #366968

Is This Acceptable? Loan Fails = 1/2 Payment to Agent?

Is it a common practice for refinancing that fail, for the agent to be offered half their fee? BofA rejected a refinance after the signing having nothing to do with me. The escrow title company didn't pay me for over 2 months so I called to learn the file was never closed. They claimed BofA rejected it and offered me $40. I thought this was pretty odd, it's not my fault the loan didn't close, I should be paid in full. I printed 200 pages, rented a zip car for the rain and did this at BofA on a weekend.

This California Title company didn't give me their policies or any of their information just sending over their loan documents. They're not listed in NR now but I'm in the process of listing them. I called the borrower who told me he was unaware of his loan being rejected and was going to follow-up with me.

Reply by Ilene C. Seidel on 1/4/11 4:16pm
Msg #366970

Something similar to this was discussed last week where an agent closed a loan and it didn't fund. In addition the split package was sent to the wrong addresses.
There are many companies that don't pay anything if the loan doesn't fund. You just have to ask up front when called. I know it's hard we try to ask everything but sometimes we are not in the position to ask i.e. in a closing, driving car etc.
Maybe we need a cheat sheet, attach it to us like our date books? What ever the outcome you need to ask the caller to add the answers to your questions on the order confirmation. We talk to too many people to remember the specifics.

Reply by Dillon/NC on 1/4/11 4:40pm
Msg #366979

I'm somewhat a newbie, but it seems to me that this goes against Signing Agents having no financial interest in the closing.

Reply by Glenn Strickler on 1/4/11 5:36pm
Msg #366988

I struggled with that when I first began also. My solution was to get the payment terms worked out before I accepted the work. That way, it doesn't matter if the loan funds or not.

Reply by Isabel/CA on 1/4/11 5:40pm
Msg #366989

You may be a "newbie" but the point you raise is a good one. However, I have often seen Independent contractor agreements where they want you to agree that if the loan doesn't fund (though no fault on your part), you only get paid half.

I don't think I have ever signed an agreement with that verbiage in it. IMO, if we do our job, then we should be paid for it. Period.

But like a previous post said, its so hard to cover all these "what if's" when you get the call for an assignment. I hate it when I'm not in a position to ask all these questions (payment terms, fax backs, etc) before I accept the order.

Reply by Glenn Strickler on 1/4/11 5:55pm
Msg #366995

You know, you just do what seems correct at the time the work is being offered, and then don't worry about it.

Reply by Doris_CO on 1/4/11 5:06pm
Msg #366984

"I called the borrower who told me he was unaware of his loan being rejected and was going to follow-up with me."

Check on the recorded deed/mortgage. If the loan you witnessed closed then your signature and stamp should be on the recorded deed and you're owed your full fee.

Reply by JulieD/KS on 1/4/11 6:50pm
Msg #367003

You're owed your full fee regardless of if the loan funds. You are an impartial witness and if your fee hinges on the package being signed, you now have a financial stake in the deal...and are no longer an impartial witness.

You need to state your payment terms after accepting a signing. When they email you a confirmation, respond to the email with your terms and tell them to respond to accept..and then print their acceptance. If you need the verbiage to use, let me know.

And, for those companies that think you and your fee are beneath them, I also have a great collection letter. We offer a service and we require payment for those services. Stand your ground; you'll get paid.

Reply by nobhill on 1/4/11 7:49pm
Msg #367015

Re: Thank you! n/m

Reply by nobhill on 1/4/11 7:47pm
Msg #367014

Re: Thanks for the Info n/m

Reply by Linda_H/FL on 1/4/11 7:10pm
Msg #367005

Three things.....

1. Question: BofA "rejected" the refinance? Was this an application and they didn't qualify for the loan? Or was there some fault with the signing that they "rejected" the signed docs - that's what it sounds like to me when you said title told you the lender rejected it.

2. Question: Borrower was unaware that his loan was rejected? If this was a loan signing, as Doris said, check the county recordings for the recorded mortgage - that's your proof that the loan that YOU had signed did, in fact, fund.

3. Note: You shouldn't be calling the borrower. He has no obligation to you. You got the paperwork signed - your problem is between you and your hiring party.

MHO

Reply by nobhill on 1/4/11 7:50pm
Msg #367016

Re: Three things.....

Thanks for the tip on not calling the borrower. You're right about that one for sure. I should have known better.

Reply by jnew on 1/5/11 1:34pm
Msg #367130

I look upon this as a business decision. If you are doing a one time job for xxx Title Co. and they operate under a wash agreement with a lender, they may try to justify non payment to you. The title companies know that if they send a cancellation fee to the lender on a loan that does not fund, the lender will not be using them again. So these wash agreements, whether spelled out or implicit operate within most title companies. Regardless, they have a duty to pay their vendors for work done. On a one time job, I am going to require full payment. If I do steady work for the title company and would suffer a far greater loss by losing my regular business, I would be willing to take the loss on an odd deal that did not fund. I can't speak for others here, but I have never been told that I would not be paid on a loan that did not disburse.