Posted by pat/WA on 8/15/12 1:58pm
Msg #430540

reverse mortgage

I just refused an offer of $60 to sign a reverse mortgage. Their rationale was that the borrower would have the documents so they pay $60

Someone must have taken it. Or they gave up because they didn't call back

Reply by MonicaFL on 8/15/12 2:45pm
Msg #430547

Good for you. I charge $150 for these because they take soooooooo long and the packages are soooooo big!

Reply by MW/VA on 8/15/12 2:48pm
Msg #430550

Ridiculous! That isn't even enough $ for the apps.

IMO they are getting away with far too much in offering these low fees.
It probably means they got one of those "bargain basement" notaries out there, and those shouldn't be doing RM's, for sure.

Reply by PublicTipic on 8/15/12 4:18pm
Msg #430571

Re: Ridiculous! That isn't even enough $ for the apps.

I charge $150-$175 in Maryland.

Reply by Pro Mobile Notary on 8/15/12 5:22pm
Msg #430583

If you do a reverse mortgage application without having a loan originator's license that fee you proudly boast getting will not offset the $25,000 fine per application you take according to the new RESPA regulations.

I cannot believe signing agents are still doing reverse mortgage apps and putting their livelihood, career and possibly their freedom (yes the law does include possible jail time) on the line for a few bucks to be made from reverse mortgage app taking.

Reply by sigtogo/OR on 8/15/12 5:47pm
Msg #430589

PRO-wasn't the fine 10K in previous post?

please provide a link to the law. I have followed several previous thread and must have missed that link.

Reply by sigtogo/OR on 8/15/12 5:53pm
Msg #430591

found it: NJ interpretation of the Safe Act.

http://www.newjerseynotaryassociation.org/NJNASAFEAct.html

I don't quite interpret the same as they do and will inquire with our SOS.
thanks

Reply by Pro Mobile Notary on 8/15/12 6:28pm
Msg #430598

Re: found it: NJ interpretation of the Safe Act.

You are completely missing the point sigtogo.

This is a federal law and it has nothing to do with SOS rules and regulations. Even if your SOS says there is nothing in OR law to prohibit this you are still exposed to a federal action and a $25,000 per app taken fine.

If you are reckless enough to continue to do it, knock yourself out. It is no skin off my nose if you bankrupt yourself.

Reply by SheilaSJCA on 8/15/12 6:54pm
Msg #430601

Re: found it: NJ interpretation of the Safe Act.

You post telling us to take what the New Jersey notary association says about it, and then in this post, you say don't even depend on what your SOS says....How ABOUT giving us the actual RESPA links.

Reply by sigtogo/OR on 8/15/12 6:56pm
Msg #430603

yes federal law but you are quoting NJ interpretation

and NJ interpretation is not the gospel on this. I would be governed by our DOJ and SOS (sorry I left out DOJ earlier) and a federal interpretation which would likely take a court ruling after numerous attorneys weigh in.
as I said I do not agree with the NJ interpretation and yes, I have read the Safe Act.
have a great day PRO!!

Reply by Pro Mobile Notary on 8/15/12 6:26pm
Msg #430597

Re: PRO-wasn't the fine 10K in previous post?

No, you must be confusing me with someone else posting something else.

I have only posted the fine accurately as $25,000

Reply by sigtogo/OR on 8/15/12 6:49pm
Msg #430599

PRO-your post of 6/21 says 10K- here is your quote:

"Buddy, according to the changes to RESPA it is strictly forbidden for a notary to take any type of application for any type of mortgage (1st, HELOC, reverse, etc) unless they have a loan originators license issued by the National Mortgage License Agency plus a state license if required, which in your case would be a CA Dept of Real Estate license which is required to be a mortgage broker. It is the law, so if you are unhappy about it, do not blame me for mentioning it in public.

The fine is $10,000 for each instance plus potential jail time too."

just sayin...

Reply by Linda_H/FL on 8/15/12 7:00pm
Msg #430604

Here's what I found

"The SAFE Act defines ‘‘loan originator’’ to mean ‘‘an individual who takes a residential mortgage loan application; and offers or negotiates the terms of a residential mortgage loan for compensation or gain.’’"

Further: "SAFE Act requires licensing of those individuals who ‘‘engage in the business’’ of a loan originator. It is HUD’s view that the SAFE Act’s distinction between individuals who
may meet the definition of ‘‘loan originator’’ (because of the activities they carry out) versus those individuals who ‘‘engage in the business’’ of a loan originator, means that not every
individual who acts as a loan originator is necessarily subject to the SAFE Act’s licensing and registration requirements. A basic definition of ‘‘business’’ is ‘‘a commercial enterprise carried on for profit; a particular occupation or employment habitually engaged in for livelihood or gain.’’ (See Black’s Law Dictionary 211 (8th ed. 2004).) It is HUD’s view that to engage in the
‘‘business’’ of a loan originator and be subject to licensing under the SAFE Act, an individual must act or hold oneself out as acting as a loan originator with respect to mortgage loan origination activities that are carried out in a commercial context and with some degree of habitualness or repetition"

Of note: "Offers or negotiates the terms of residential mortgage loan" and "an individual must act or hold onself out as acting as a loan originator with respect to mortgage loan origination.,.."

http://portal.hud.gov/hudportal/documents/huddoc?id=SAFERULE.pdf

This combined with the FL definitions as I cited previously....I'm okay with RESPA's because I (a) don't take the application; and (b) don't negotiate terms of a residential mortgage loan; and (c) don't hold myself out as an originator

IF you can show me valid FEDERAL and FLORIDA citations saying otherwise, I'm all ears.

Reply by SheilaSJCA on 8/15/12 8:22pm
Msg #430617

Thank you Linda, this is much more what we need to see n/m

Reply by MW/VA on 8/15/12 10:20pm
Msg #430630

Thanks, Linda. That's been my take on the app. issue

as well. We are not "taking an application" per se, and are not involved in processing of same.

Reply by ReneeK_MI on 8/16/12 6:29am
Msg #430648

Adding to that reliable source ... the Act itself

S.A.F.E. Act - here are the actual definitions, CAPS for emphasis are my own:

(4) Loan originator
(A) In general
The term "loan originator" -
(i) means an individual who -
(I) takes a residential mortgage loan application; AND
(II) offers or negotiates terms of a residential mortgage
loan for compensation or gain;

(ii) DOES NOT INCLUDE any individual who is not otherwise
described in clause (i) and who performs purely
ADMINISTRATIVE OR CLERICAL TASKS on behalf of a person who is
described in any such clause;

.....................................
(B) Clerical or support duties
For purposes of subparagraph (A) (QUOTED ABOVE), the term "clerical or
support duties" may include -
(i) the receipt, collection, distribution, and analysis of
information common for the processing or underwriting of a
residential mortgage loan; and
(ii) communicating with a consumer to obtain the
information necessary for the processing or underwriting of a
loan, to the extent that such communication does not include
offering or negotiating loan rates or terms, or counseling
consumers about residential mortgage loan rates or terms.

Link to the S.A.F.E. Act: http://uscode.house.gov/download/pls/12C51.txt

Looks pretty clear & concise to me, and IMO we are not 'IT'.

Reply by MW/VA on 8/16/12 10:08am
Msg #430669

Thanks, Renee. I think you & Donna have done a

great job of clarifying this for us. Both of you have backgrounds that lend themselves to getting the facts straight. ;-)