Posted by Anonymous on 4/19/04 12:09pm
Msg #1552

Can a mortgage company do this?

I have been asked to sign a contract with a very well known company. I am debating that issue. I will do just this company's loans. But the problem that I have is that I know my limitations as a signing agent. I am not an attorney, nor can I give legal advice.

This company wants me to do the closings, but also wants me to sell the loan. In other words, I am not to call the lender, but get the job done my self. I am to refer them to the 3 day recission period. That's fine. While I can do these closings, I do not think it is my place to give advice or not be able to call the lender if I have a question.
This company will quarantee me a certain amount of closings a month, plus some.
I need to know the legal part of this and if this sounds legit to you. I am not getting into trouble for no company. How do I respond to this company's demands?
I will remain anonymous for this topic.
Thanks for your help.

Reply by Roger/OH on 4/19/04 7:45pm
Msg #1554

As an independent businessperson, you can do anything you want with this. My take is that as a signing agent, you are NOT a closer that sells the loan, disbursesfunds, or does title work. You're there to witness signatures, check IDs, notarize docs, and ship them back - period. I don't think I'd want to be tied down to any one company when there are hundreds to pick and choose from; many of whom you'll likely develop good relationships with. Good luck!

Reply by Jeremy Blansett on 4/20/04 11:08am
Msg #1566

All states have laws that state you are there as a signing agent, and a signing agent only. You are not allowed to give advice or give exact details regarding the docs, this is what they call giving legal advice, if you are not an attorney, you dont need to give it, because if the borrowers come back and say well he/she said this you are liable.

Reply by PAW Notary Services on 4/20/04 8:30pm
Msg #1572

My first question is whether or not you would be an employee of the mortgage company? If not, what does your contract with them state about information sharing and liability? Typically, as a signing agent, you would not have the proper authority to discuss any provisional information provided by the lender to the borrower. Doing so may be construed as UPL.

If you are an employee or agent with a much more robust and provisional contract to share information, act on the lenders behalf and have knowledge of the loan, and finally, be shielded of liability by the lender, then you could certainly "sell the loan".

I am really miffed by your stating that you've been "asked to sign a contract with a very well known company", but then say, "I am not to call the lender". Am I understanding that the company hiring you to "sell the loan" is not the lender? Not even a correspondent lender? This sounds hinky to me. I would never try to act on the lender's behalf without the lenders specific direction and knowledge.

Reply by Anonymous on 4/20/04 10:36pm
Msg #1579

The company that I am refering to is the Lender. If I am to do a home closing, I need to handle it and not call them with any questions.

Reply by sue on 4/21/04 6:29am
Msg #1581

well it makes no sense to me.

borrower - "I am to get back $10,000 and you're telling me I owe $2500. What is the difference?"

borrower - "I didn't want my Acme Dept Store card paid off - it's for furniture at 0% for 18 months. Why is it listed as a payoff?"

Borrower - "no one mentioned this balloon/prepayment penalty/adjustable rate previously. perhaps I will sign when you explain the benefit to me compared to what we originally spoke about."

You can't answer these questions even if you want to because you don't have any of the background paperwork in front of you. Something isn't right here. I'm thinking they don't want you calling with every little seemingly innocent question that notaries appear lately not willing to answer/show the borrowers. Like that one recently who posted that the borrowers asked what bills were being paid off and she answered that she wasn't there to answer financial questions (hello, how about just whipping out the HUD in that situation)

I also wouldn't sign any contract that says you can't work for anyone else. what are they guaranteeing you in return? a fixed number of appts. w/a set commission?

Reply by Anonymous on 4/21/04 10:07pm
Msg #1597

Yes, they are going to guarantee me a certain number of appointments per month. But, I am concerned about a contract. This would be a "No Compete" contract.
I have not seen the contract yet as I have been really busy. But, I am going there this week and take a look. If I think it is o.k., I might consider working for them only.
Answering your question about explaining the documents. I am to pretty much sell the loan with out bothering the lender, as you said with petty stuff. No problem.
But, isn't there a difference between a closer and a signing agent?

Reply by Laura Strebel on 2/4/10 3:17pm
Msg #321288

In the state of Utah, an NP can notarize the signing of loan documents only without giving ANY legal or financial advise or opinion. Any questions about the loan itself MUST be directed to the borrower's loan officer.

A "closer" is a licensed title person who is allowed to talk to the borrower and loan officer about the details of the actual loan agreement.

As a licensed RE broker I am not allowed to become a licensed closer, I would have to give up the RE license, then I would only be allowed to do docs for the particular title company that I signed with. As an NP I am also not allowed to notarize first mortgages.

Going "on contract", they would have to be willing to pay you as an employee and do the workmen's comp insurance, withhold taxes and all, if you were in Utah. How that would be handled in some other state would be worth checking into before signing anything. Personally, I wouldn't sign with any company that required me to sell anything without a sales commission agreement and that is also out of the realm of being an NP.