Posted by Anonymous on 2/5/06 12:45pm
Msg #94535

Companies trying to cut your fees

I frequently have title companies and s.s. ask me to charge half when a loan does not sign since no notarization occurred. The problem with this is that many times the loan is not what the borrower wanted and the loan goes down. If they want me to drive far away then I have basically spent my own money for ink, paper and gas, plus my time which could be four hours if it is far away. So, I would break even. As a result of this, I have dropped the number of counties that I cover from 14 down to 7. It's just not worth the gas money and time when they don't sign. Is it legal for the notary to have a financial interest in the outcome of the loan? Isn't that the whole purpose of having an un-biased third party to witness the closing? Any lawyers out there that can answer this?

Reply by Anonymous on 2/5/06 1:15pm
Msg #94537

I am not a lawyer ...

What you're really asking is if it's legal for the notary to keep their fingers crossed and hope that the borrower signs. Yes, of course that's legal. However, the only interest you should have is in doing your job in a professional manner, and letting the rest take care of itself. It's out of your hands. You can't predict the outcome of a loan, so there's no point in cutting back on the distance you will travel. You're just shooting yourself in the foot. No, it's not worth the gas money and time when they don't sign. But what if they do? This job is a crapshoot. We gamble everytime we accept an assignment.

Reply by Lee/AR on 2/5/06 1:26pm
Msg #94538

Negotiate. It sometimes works; sometimes not. In which case, you don't go. Which is why it often does work.

Reply by MichiganAl on 2/5/06 3:59pm
Msg #94556

I'd love to see this challenged in court

We're supposed to be impartial, yet our fee is tied to whether or not someone signs. I wonder what a court would say about that. Has it been addressed before?

Reply by Anonymous on 2/6/06 8:28am
Msg #94647

Re: I'd love to see this challenged in court

I know, I've actually had loans go down and then had the loan officer say to me, "why did you tell them is was an adjustable" I've had the loan officer on the phone with the borrower telling them that the loan was fixed and that I didn't know what I was talking about. When the borrower can read Adjustable rate mortgage acrosss the top of the note!!! If the loan goes down, it's always the notaries fault not the crooked loan officer!

Reply by MonicaFL on 2/5/06 8:29pm
Msg #94591

Why don't you just state your fees and concerns up front and if they agree with you, have them put it in the confirmation? I do this all the time and have never had any problems. JMPO

Reply by Anonymous on 2/6/06 8:37am
Msg #94651

I think my main title company will have a problem with me dropping the number of counties that I cover. If they ask, I will tell them that it is just to much risk for little pay that only covers my gas, ink and paper. If they want to work something out for the far away counties then I would do it, otherwise it's just not worth working for free. My experience is that the loan officer will try to slide an adjustable through and if it doesn't work then they will re-do the loan and give the borrower what they originally asked for. Alot of my deals go down and then re-schedule because the loan officer didn't give them what they wanted. The title company only wants to pay half for the first attempt at signing. The people at the title company also no which loan officers are dishonest all the time because they tell me.