Posted by LaShon James-Major on 12/18/06 10:12pm
Msg #166611

Choosing your own notary/ CA

Many borrowers are under the impression that they have to go with the notary that the bank (or some other institution in the loan process) chooses but I'm sure it's somewhere in writing that this is not so. Does anyone happen to know?

I know a borrower is even able to choose their own title company if they want so choosing their own notary shouldn't be a problem.

Reply by cntrlcalntry on 12/18/06 10:24pm
Msg #166613

I have been requested twice. They just give thier L.O. my information.

Reply by Joan_OH on 12/18/06 11:23pm
Msg #166625

Not Always

I am currently in the closing process and the lender is using Chicago Title. I have a friend who is an approved Chicago Title Notary and they have allowed me to request her.

On the other hand, I close for a title company that when the RE agent says just send me the paperwork, I'll get it signed, they are told they will not insure title unless they use their title closer. May or may not be true, but that is what they are told.

I'm not so sure the borrower has the right to choose this one. If title is insuring, I would guess they hold the cards in this regard. Anyone know otherwise?

Joan-OH

Reply by KJ_CA on 12/18/06 11:31pm
Msg #166626

Re: Not Always

In my experience if the borrower is paying for the services (which they usually are) they the right to chose the service providers for their closing. That includes Title, Escrow and Notary services... Why would the borrower be required to use a particular service (Notary, Title, etc) if they could get the same job done cheaper by someone else they may know ??

Reply by Joan_OH on 12/18/06 11:59pm
Msg #166629

Re: Not Always

I guess it would depend on who is paying. Is the notary a line item? Is it bundled up in the title company's "closing fee?" Some title companies cover their notaries on their E&O and may have to to insure title. I would think they would be within their right to choose the notary.

Soon, in Ohio, Notaries, as subcontractors of the title company will be required to carry a substantial amount of Liability E&O. In my mind, this would mean once the title company has been chosen, either by the borrower or lender, the borrower could not just choose any notary without title company approval since title will be required to make sure their subcontractors are insured.

Borrowers don't get to give their input on who does the credit report, who does the flood determintation, the tax certification and many other items.

In the end, I really think title holds the cards on this one. Chicago is letting me choose knowing that I've chosen a notary that is Chicago approved. If I wanted to use anyone else, they might not have approved.

I know title companies can be chosen. Anyone else know where to find the info on what else borrowers legally have the right to choose?

Joan-OH

Reply by Ndwa on 12/19/06 1:10am
Msg #166634

Re: Not Always

A good example here is recent discussion regard to the $500K E&O requirement to close loans from Provident Funding. Some notaries were specifically required to have such E&O coverage probably due in part the broker chose to have SS assign NSA instead of TC. I don't have $500K E&O, but still can close Provident loan b/c I was told I'm considered their prefer/approved closer.

Joan's insight is right on target. It's a matter of TC willing to put up that E&O umbrella to cover NSA as their prefer closer.

Reply by KJ_CA on 12/19/06 1:28am
Msg #166640

Re: Not Always

Requirements in every state and title company vary. In my experience I have always been able to select my own NSA in my own personal transactions. In fact on a loan package that only required a single document to be acknowledged by a Notary. I took the document (DOT) to the local UPS store and had it done for $ 10.00 (the maximum fee that can be charged for a notorial act in CA). The rest of the package I signed and completed without a problem. Why would I pay a notary $ XXX.XX to sign a set of docs, if I can negotiate a better deal for myself.

I realize not everyone would go to this extreme, but if I can have a friend or someone I know give me a great deal on a signing, why would I pay another NSA a significant amount more for the same service?

The buyer/borrower always pays for the services rendered in their transaction. Some of those fees are fairly set in price such as credit report, tax service, etc. Some other fees vary greatly by who provides the service such as Title Insurance, Escrow and Notary charges. Most borrowers, who understand the game, will address the fees on items which vary the most and try to lower those fees to get the best deal possible.

Reply by Ernest__CT on 12/19/06 6:35am
Msg #166648

Re: Choosing your own notary

Several borrowers have requested me specifically, because they liked the way they were treated when I handled their previous closings. (I'm not sure that I'd hear if a borrower's request were refused, of course.)

Just last night Mrs. Borrower for whom I did a closing in 2005 called to ask if I'd do her 2006 closing for her directly instead of her having to pay through the lender. We negotiated a fee which made both of us happy; she'll save $xxx and I'll get my normal overnight docs fee plus a little. It wouldn't surprise me if she chose her own title company too....

Reply by SueW/Tn on 12/19/06 9:09am
Msg #166665

This is what a LO told me...

Borrower has choice of Title, if Title Company is NOT on the authorized list of the Lender then there's a problem. Lender has critea and Title must be able to fulfill them, the most common being the $1,000,000 insurance coverage. Once Title is confirmed a borrower can request a particular SA BUT it's Title's call. I've been requested twice and once Title had no problem and the second time a different company refused stating their policy was only in-house closings with their closer. Also, I've done business with a particular Lender who has since changed their policy to closings only being done in Title office. When I questioned the LO about this change she told me that the company was tightening up and closing all the loop holes that left them open to fraud. She NOW personally drives BO's up to 80 miles to the "approved Title office" for closings. It's a massive inconvenience for both her and her BO's and she hates it BUT it's the Lenders call. Boils down to the SA is a convenience for the BO and not all Lenders are interested in convenience, I think they're more interested in CYA.

Reply by MelissaCT on 12/20/06 10:48am
Msg #166900

Fraud??

If the borrower were allowed to choose the person who would ultimately be establishing their ID, it could get sticky if fraud is committed. The notary is supposed to be impartial to the transaction, thus a title-chosen notary is a better fraud-prevention tool to be used in the lending process. Just some food for thought.