Posted by HSH/WA on 5/20/13 11:39pm
Msg #470672

Don't discuss the HUD 1 with the BO, the LO will take care

of that later - the SS says. I always tell the BO when funds are due so he/she can get a check if needed. I am not so sure about getting the HUD 1 signed without pointing out that he/she owes money - even if they would sign it without noticing - not likely. If they sign the HUD 1 are they obligated to pay the funds from BO shown? If the LO is doing his/her job, the BO should know up front what is needed. Honestly, this kind of smells fishy - might be one to pass on. Any thoughts?

Reply by paaz on 5/20/13 11:53pm
Msg #470673

I always present each and every document. It is our responsibility to witness the signing of each document and I want to make sure my borrower's can acknowledge they understanding the contents of the document. Later they would not be able to say in court that I had them sign any document they were not presented. This is my policy to protect me.

Reply by Joeycaps on 5/21/13 9:27am
Msg #470693

Been in this biz 18 years and I learned 2 things, never discuss with borrowers otherwise it can turn into a 2 hour closing with constant questions, and 2, where not supposed to discuss the docs with the borrower, that's for the lender, I give them the phone number of the lender if any questions come up, and if I got hauled into court I would simply say, its my job to witness signatures only, not discuss docs, that's almost acting like an attorney which can get you sued.

signing agent are only responsible to collect proper ID and witness signatures, nothing else, we are not supposed to give advice of any kind, at least that's how it is in CA, not sure what state your in.

My first year I used to discuss the docs with the borrowers and with a 130 page set of docs it can take hours to go over most of the pages, because if you start answering questions on some page, the you will get a barrage of questions on a bunch of other pages, Im not paid enough to spend over an hour with a borrower. im in and out within 20 minutes, maybe 30 minutes at most but that's rare. If a borrower wants to read all 120 pages and some do I point out they have 3 days to go over the terms and if they don't like it they can cancel. in 17 years I have walked out of 2 closings because I wont sit there for an hour while they read, I give them the 3 day right to cancel the very first thing I have them sign, I do 3-5 closings per day, I don't have time to babysit a borrower, that's not our jobs.. In CA we can be sued for giving advice or discussing the loan to begin with. I've close about 400 loans a year, for 18 years that's about 7200 loans without any trouble. except the 2 I walked out on. Don't let the borrowers suck you in and take all your time. that's all im trying to say.

Reply by pan/nd on 5/21/13 12:45am
Msg #470676

Oh good gosh...what a crock.

I have a signing in a town 72 miles from me one way....and so I'm blindly suppose to go there

and hope for the best?

I DON'T THINK SO. Been there--done that!!

Borrowers will get a call from me :

1) to go over numbers (that the LO or title may not have)

2) make sure everybody who is supposed to sign is available

3) make sure they have copies of ID's

4) make sure everybody is in sync on time

My experience is that many times the notary is left to proclaim the bad news that borrowers

will need to write a check or that the 10K they thought they were getting has evaporated

down to 1k.

"If the LO is doing his/her job..the BO should know up front what is needed."

Oh, give me a break.

My experience is the opposite. LO=lazy oaf

But, hey, it ain't a perfect world

Reply by BobtheElder on 5/21/13 5:12am
Msg #470679

I don't know how you get a HUD1 signed without discussing it... not sure I'd even try to do so...

Reply by parkerc/ME on 5/21/13 6:51am
Msg #470680

When I make the initial confirmation call to the BO, I always ask if the BO knows whether he/she is to have a check ready (funds due) at the table. Usually they believe everything is rolled into the Re-fi...sometimes ends up money back to BO. But if they say they think everything is rolled into the refi, and when I get the documents the HUD-1 shows funds due...I always call the BO as soon as I receive docs. That's the first thing I look at when I receive the edocs, even before printing. Usually there is a threshhold that BO can just write a personal check...anything over that has to be a bank draft. I don't "discuss" any other numbers on the HUD...just point out the funds due (or coming back to BO) on the first page and point out the breakdown of loan fees on the 2nd page. Any questions about specific charges I refer them to their LO.

Reply by Pam/NM on 5/21/13 9:38am
Msg #470702

When I make initial call I ask if they have seen a preliminary HUD and I tell them that I do not have the docs yet and that they should contact their l/o to see if there will be any funds due at signing. That being said, I do go over the HUD briefly---here is your payoff/loan/principal/funds to or from you. If they have been advised to call their l/o, there shouldn't be any nasty surprises. If HUD looks ok to b/o, I proceed. First thing I go over, right after verifying id/journaling.

Reply by MW/VA on 5/21/13 9:34am
Msg #470699

I do "review" the HUD with the borrowers--go over page 1

with major nos. Any questions or explanations of where those nos. come from are for the LO.
Some LO's send the borrowers a copy of the HUD in advance & review the nos. ahead of time. IMO that's how it should always be handled.

Reply by Sandra G Holland on 5/21/13 12:30pm
Msg #470761

Re: I do "review" the HUD with the borrowers--go over page 1

I have a question that's kind of related to this. If a borrower referred someone to me, and used the word "explained" in reference to the documents, do you all think anyone would get the wrong idea? Borrowers don't usually use words such as "review", etc. Of course, the borrower didn't mean anything but praise. I always tell borrowers I'm not a lawyer and not a loan officer, and what my duties are as a notary signing agent. I'm just wondering what the word would mean to various people.

Reply by MW/VA on 5/21/13 1:21pm
Msg #470772

That word "explain" trips everyone up, IMO. Yes, we do

explain the docs, but don't give legal or financial advice as to whether it's a good loan for them, etc.

Reply by parkerc/ME on 5/21/13 5:43pm
Msg #470819

I "describe" the purpose of each document...

And they "review" when they look at it. I don't "'s'plain" anything...that's the LO's job.