Posted by John_NorCal on 8/6/05 2:56pm
Msg #57386

Question to Sylvia_Fl

Hi Sylvia,
In reading another post that you replied to you stated "If there had been a prepayment penalty it would be in there (I always point it out to the borrowers"

Isn't that a bit beyond what we are hired to do as signing agents? I know when I was a loan broker I would point out things like that on my own, I would never expect someone else to do that for me. As an SA I don't point out things other than the RTC, first payment notice, etc. I leave the actual terms of the loan up to the LO and borrower. I do explain what each doc is though, maybe I'm comparing apples to oranges here.

Just my opinion, have a good week end.

Reply by Sylvia_FL on 8/6/05 3:01pm
Msg #57388

As signing agents we identify key points of the loan. We do not explain them! Plus there is usually a prepayment penalty rider, so we have to point out what they are signing.

So, if you are "explaining each doc" what do you do about the prepayment penalty rider? Ignore it???

Reply by John_NorCal on 8/6/05 3:14pm
Msg #57390

No, I don't ignore it. I just tell them what it is, as I said previously, maybe I'm comparing apples to oranges. I identify the doc, but do not go into detail as to the purpose of each doc.

Reply by Sylvia_FL on 8/6/05 4:01pm
Msg #57397

I don't go into detail either, but I do point out that there is a prepayment penalty.
So, basically you are doing exactly as I do you are identifying the docs to the borrower.
I never explain any of the docs, just identify them.

Reply by Dmartz_IN on 8/6/05 5:13pm
Msg #57410

Sylvia,
In your opinion where should be a SA's stoping point on identifying docs to a borrower. I had a signing late last night and the borrower kept asking how do they come up with this amount and how do they come up with that amount so just how far should one go in a case like this.

Reply by Sylvia_FL on 8/6/05 5:59pm
Msg #57412

How they come up with amounts is explaining to the borrower! They need to call their LO

Identifying is:

This is your note - this is your interest (pointing to it) this is your principal and interest payment (pointing to it) and this is the date the first payment is due (pointing to it)
You are not explaining why they come up with the dates or the amounts, you are just identifying the key points of the document.

Reply by Dmartz_IN on 8/6/05 6:08pm
Msg #57415

Re: Thank You Sylvia N/M

Reply by PAW_Fl on 8/6/05 8:29pm
Msg #57423

Re: Thank You Sylvia N/M

I too, simply verbalize the highlights of their loan, showing them where it is written for what I'm saying. Besides all the figures on the HUD, the terms and conditions of the notes are the second biggest showstopper: wrong interest rate, wrong type of loan, prepayment penalty, "grace" period. The good things about the note is the first payment date, they like the idea of skipping a month which explains the amount shown on line 901 of the HUD.

Then there's "watta ya mean, they aren't escrowing my taxes and insurance?" Or just the opposite, when you show them the first payment letter or the impound itemization.

Reply by Liz/MD on 8/6/05 11:09pm
Msg #57437

Not to interupt, but yes I am....I think you need to be prepared to know more than what the APY is. You are often the one and only person this borrower will ever see. So smile, get over it, and try to be proffessional.

Reply by John_NorCal on 8/6/05 5:55pm
Msg #57411

Looks like we are on the same page. I must have interpreted your original reply.
Have a good week end!

Reply by Dmartz_IN on 8/6/05 6:04pm
Msg #57414

I think alot of it has to do with the fact that the borrowers are told by their LO's that they are sending a closer over to finish the loan package so they think we are there to smooth everything out and answer all their questions.

Reply by PAW_Fl on 8/6/05 8:17pm
Msg #57422

Not only do they think we can fix everything, and know everything there is to know about their loan, they expect us to bring their check too! Next they'll want biscuits and jam with it.

Reply by MelissaM/FL on 8/7/05 10:20pm
Msg #57510

I've been asked for checks on three signings this week! I thought it was just because the moon is full or something! I guess it's not just me.

Reply by Bob-CHicago on 8/7/05 10:16am
Msg #57461

One further thought

There is a section near the bottom of the TIL to show if there is a penalty if paid off early
usually checked either yes or no. You can point this out to them as a quick answer if they ask if there is a PP penalty. By doing this you need not interpret the note. If there is a PP penalty it is usually detailed in a rider to note or in a section of the note entitled "payment made before they are due" (or words to that effect) Point out that section and let them read it.

There is also a section there as to "refund of interest if paid off early.
If they question that, I tell them that they are charged interest to date they pay of loan, (end of month if FHA)