Posted by kmnotary_CA on 4/1/05 10:19am
Msg #29121

Q: Getting paid from Brokers

Just wanted to know how anyone else handles getting paid from a private broker that has you sign his/her loan docs and the loan doesn't fund.

I have done 3 signings for this broker and 2 of the loans didn't fund. Last night I resigned for one of the borrowers, and the broker stated, "Don't worry, i will take care of you." Now, how doesw that translate into my getting paid

Reply by ColleenCA on 4/1/05 10:28am
Msg #29124

I would expect to be paid regardless. If the loan doesn't fund, it wasn't your fault. You completed your job and therefore should be paid in my opinion.

Reply by Nicole_NCali on 4/1/05 11:09am
Msg #29129

Unfortunately that is one of the issue when doing direct broker/title work. You can demand the big dollars but if the loan doesn't fund for whatever reason, you are out of your fee. If this person is giving you volume the lack of funding can be overlooked, you will need to decide if you want to keep this association or not.

Reply by ColleenCA on 4/1/05 11:24am
Msg #29131

Re: Q: Getting paid from Brokers - Nicole

Can you explain why when going through a title co. that if the loan doesn't fund, you shouldn't expect to be paid? I would think it would be the same as with a SS. As I understand it, our job is done once everything is signed, sealed and delivered. The notary can't help it if something goes wrong on the other end. At the very least, there should be a signing fee of at least half of the regular fee. I would consider extending a professional courtesy to the title co. from time to time if they were a regular client.

Reply by Nicole_NCali on 4/1/05 11:55am
Msg #29139

Re: Q: Getting paid from Brokers - Nicole

When you are dealing with a broker as a siging agent, you may find that you have affixed your fortune with his/hers, if the loan doesn't fund or it is cancelled, then you may find that your fees are going to take a bit of time to be distributed. If you deal with title companies, some title companies will explicitly tell you that you are being paid out of escrow and if this loan doesn't fund, then you may not be paid. Unlike with a SS, you would be a fool not to charge title companies and brokers $200 per loan signed and an additional $50 for edocs, with a SS who are to pay you no matter what, you are sometimes stuck with fees like $50, $75, or at the max $100 there are some exceptions.

Title companies like Chicago Title, Placer Title will pay you whether the loan funds or not, but they pay you from another account and not the escrow. Sometimes, when you sign documents direct from a broker, the broker may have not even coordinated everything with the escrow company. This may sound convoluted, but of course you are to be paid no matter what, but the chain of responsibility on unfunded loans makes this murky, I like to bill the contracting individual and send him/her my demand letters.

Reply by ssnotary on 4/1/05 11:34am
Msg #29133

That is terrible, may I suggest a firm letter. I have one in my files, I would be happy to forward it to you and you may change what you need on it.

[e-mail address]

Reply by ssnotary on 4/1/05 11:37am
Msg #29135

Your time is valuable and you absolutely should be paid, no questions asked.

Reply by kmnotary_CA on 4/1/05 9:32pm
Msg #29237

Thank you all for your commentsw, and I will send an email for the "firm letter" as that might be what i need.
Thanks again.