Posted by Anonymous on 12/16/05 9:32am
Msg #83000

Ripping off the borrower...or me?!?!

I was loooking over a HUD the other day, for docs for CA Cal. and notary signers, and it listed the notary fee as $250, and it was to another signing co., vital signings. the fee i was getting paid to notarize was considerably lower. Who is keeping this extra money? Sounds like a respa violation to me.

Reply by PattiCA on 12/16/05 9:55am
Msg #83004

Who says anyone is getting ripped off. Did you get the fee you asked for? And if the fee is disclosed, the how is the borrower getting ripped off?

In CA, the settlement statement you (the notary) see is an estimate not a final. On my refi's alone, I can attest that the fees at signing were higher (and sometimes lower) than what was paid on certain items...sometimes a dollar or two, sometimes higher. When it was all done and thru, the fees were adjusted and I (the borrower) got the money back.

In the case you describe, maybe Vital had it first, who could not place it, then it was given to notary signers. Or Vital farmed it out to notary signers so both Vital, notary signers and you are getting a piece of the pie.

In any case, I would like you to explain the RESPA violation. I'm beginning to think people just like throwing that word around.

Reply by BetsyMI on 12/16/05 10:58am
Msg #83019

Had one the other day where it showed $125 for the notary fee on the estimated expenses paid by the lender. My understanding is that the Document Service Company got $35, the SS got $15 and I got $75. Too many hands in the pot!

Reply by Anonymous on 12/16/05 12:45pm
Msg #83045

Look, i am not saying that i am sure that its a voilation. In Massachusetts, the fees on the HUD are final. so its not the california estimated HUD fees issue. I believe its a possible violation of RESPA section 3500.14 for unearned fees. But i might be wrong, i was just wondering if anyone had any experience with this...BTW, thanks Betsy, your definately right.

Reply by PattiCA on 12/16/05 1:59pm
Msg #83050

The only way I can see an unearned fees issue is if the TC or lender kept the "additional" fee. However if it is a situation where Vital contracted another SS and that SS contracted you then everyone gets a piece of the pie. Since each has performed a service, there is nothing unearned. They can charge a little or as much as they want just as you can. Now if any of those fees go back to the lender or TC to entice additional business, then that would be a violation. I personally don't see any violation here as you can not provide enough info about the situation as you are not privy to it.

Reply by Genkichan on 12/16/05 4:07pm
Msg #83078

Hey, Isn't Vital the company that sent out notices about renegotiating their contractor fees, and therefore lowering their SA fees due to "changes in the mortgage environment to remain more competitive"? (Or was it another SS?) If they're still getting $250.00 for one assignment, then....we all know what that means.

Reply by Tina_MA on 12/16/05 4:50pm
Msg #83085

>>>"In Massachusetts, the fees on the HUD are final."<<<

That's not true. Most of the HUD's I see are estimated.

And on the ones that are supposedly "final", the fees for signing/attorney/notary are usually incorrect (higher or lower).

Reply by Paul_IL on 12/17/05 12:21am
Msg #83114

No RESPA violation in this case