Posted by Anonymous on 11/8/05 8:01pm
Msg #75184

Initialing changes??

I did a signing last week and the borrower crossed out a fee on the itemization of amount financed. I had her initial the change. I found out today that the lender wants me to go out and resign a new document (without that fee listed...it wasn't supposed to be there). I talked with the lady and she was told, "there was a notary error. apparently the notary was supposed to initial my change as well". Is this true? Or is the lender just making me resign a new (and correct) doc and telling the borrower it was my fault??? Thanks!

Reply by CaliNotary on 11/8/05 9:41pm
Msg #75195

They're trying to blame you for their mistake AND get you to fix it for free. Don't do it. And if whoever sent you out there doesn't back you up 100%, you better seriously think twice about working for them in the future.

We NEVER intitial changes on the docs.

OK, I just noticed you didn't specifically say whether they're willing to pay you to go back out. If they are willing to pay (which would surprise the heck out of me), I'd tack an extra $10 onto your fee and tell them that is your fee for being the fall guy for their mistake.

Reply by Kerrie Debney on 11/8/05 9:59pm
Msg #75201

I agree 100% w/ Cali! You should not have to go look like a fool for the TC just b/c they wanted to try to charge their brwr for something & got caught! I would def make sure they are going to pay you & make it known to whoever gave you that order that you are not the Lender! You have no control of how docs get drawn.

As far as intialing the docs, you only initial your mistakes or errors.

Let us know what happens

Reply by PAW_Fl on 11/8/05 10:03pm
Msg #75202

>>> I found out today that the lender wants me to go out and resign a new document (without that fee listed...it wasn't supposed to be there). I talked with the lady and she was told, "there was a notary error. apparently the notary was supposed to initial my change as well" <<<

I have a couple of comments on the above. (1) Typically, final HUDs must be clean, without corrections, so a resigning of the HUD makes sense. What doesn't make sense is why they need to send it to anyone but the borrowers. Signatures on HUDs do not get notarized, and the E&O/Compliance agreement should cover the requisite time to return the corrected documents.

(2) As someone else already stated, the NSA doesn't need, nor shouldn't, initial anywhere except in their purview, i.e., the notarial certificates and venues on affidavits.

Reply by Kerrie Debney on 11/8/05 10:12pm
Msg #75205

I can see why they would want you to go back to the brwrs. They don't want to put their brwrs out by having them go to ship the HUD back & be uncertain of knowing that they in fact signed it correctly. That's fine & understandable AS LONG AS THEY ARE GOING TO PAY YOU! If they don't think they should pay you, don't do it! If you have to argue & they say yes just to appease you, they will wait for you to finish the task & then not give you your fee.

The HUD being an Escrow document can be drawn w/ out it being a huge ordeal. The LO I am 99% guarunteeing sold a bad loan to the brwr & is too spoiled or lazy to actually do the homework on making sure he knows the procedure of a notary, IMOHO of course!

Reply by Becca_FL on 11/8/05 10:43pm
Msg #75218

Not to mention...

the itemization of amount financed does not require Notarization. Why don't they just fax the corrected doc to the borrower and have them send it back?

Reply by PAW_Fl on 11/9/05 6:30am
Msg #75273

Re: Not to mention... (oops)

I said HUD. I should have said Itemization of Amount Financed. Of course, if there is a change on that, the HUD may also require changing if the amount is erroneously listed on both. (Trying to save face here. )

Reply by ReneeK_MI on 11/9/05 2:58am
Msg #75270

The "Itemization of Amount Financed" is related to the TIL. If the fees on this doc were changed, it negates the APR calculated on the TIL. It's sometimes referred to as "page 2" to the TIL, and it lists the specific fees that were included in the APR calculation.

Since a change on one document can affect other documents, my opinion would be that your only error was possibly (since I don't know if you did or didn't) in not calling from the table prior to the change being made. On that basis alone, it might be said that there was 'an error by the notary'. However, you wouldn't initial such a change. I agree completely with the others, that the signing of these revised docs shouldn't even involve you.

You might even be able to point out, IF you tried to call someone and nobody was available, and IF this was a real sticking point for the borrower, that by 'letting' her make this change and having her initial it as would be 'the standard' of hand-written corrections, you were able to have the loan CLOSE.