Posted by Calnotary on 6/29/06 4:46pm
Msg #129679

Different payment amount. Please read...

I had a signing Yesterday, borrower asked me on his monthly payment, I quickly went to the note and told him 2200.00 per month. When I got to the TIL it stated 1933.00. Why the difference?
I asked him to call his LO and he was told that his payment was 1933.00 dollars. But it showed
2200.00 on the Note?

thank you.

Reply by Ernest__CT on 6/29/06 4:58pm
Msg #129680

This is another case of ...

... the Notary overstepping bounds. Always refer "Why ..?" questions to the Loan Officer. Period.

Looking just at the Note is A Bad Idea. The Note will not show escrow, for example. There is usually a document which breaks down the monthly payment (please note I said "usually!).

Reply by Calnotary on 6/29/06 5:04pm
Msg #129684

Re: This is another case of ...

So ERnest if the borrower asks you for his loan payment, you just tell them to call their LO?

Reply by Ernest__CT on 6/29/06 5:16pm
Msg #129690

Re: This is another case of ...

Of course not. If asked what the monthly payment will be, I flip to the TIL and/or other document which states their payment terms. That's not UPL, just pointing out information that they can read for themselves.

WHY payments are what they are is another matter entirely. The TIL has the annual percentage rate (duh!), while the Note has just the note rate. A lot, but not all, of TILs have a second page which explains why the note rate and APR are different.

"Why is my interest rate xx%?" is a question which must be answered only by the Loan Officer.

Reply by MistarellaFL on 6/29/06 5:38pm
Msg #129697

Re: This is another case of ...

The payment on the note is for principal and interest only.
Escrowed funds for taxes and insurance will be added to the p & i for their TOTAL payment.
A signing agent should be aware of this.

Reply by Bob_Chicago on 6/29/06 5:39pm
Msg #129698

Not the usual situation.

Ernest is correct that the total montly payment amount is usually
found on the "first payment letter" which includes P & I taxes and insurance.
If there is a difference between the payment as shown on
the note and as shown on the TIL, the TIL is usually higher
due to mortgage insurance which is included in the payment
amount as shown on the TIL
The only reason I can think of why the payment on the TIL would be
lower than the amount as shown on the note, would be
due to a "interest first " rider" affecting the note.
Another reason might be as the signing that I had the other day
where the Note computed the payment on a 15 year amortization and
the TIL had it based on a 10 year. This is the result of a little known issue
known as "Bozo processor screwed up and decided that there was
no reason to check dox, becuase they came out of the computer, so
they must be correct. "
I cuncur that it is not UPL , and in fact is a main part of our job to point out
the main loan terms to bwr, such as amounts as shown on the HUD !,
interst rate, term, date and amount of 1st
payment, if payment includes taxes and/or ins, and if there is a prepayment
penalty (box toward bottom of TIL)

Reply by Ernest__CT on 6/29/06 5:46pm
Msg #129700

Thanks, Bob_Chicago!

The main point I was making had seemed to be overlooked. Of course it is our duty to point things out within the documents! That's our secondary function (the primary being to identify the signers and notarize where appropriate). My point was that we are not to explain why things (such as the interest rate) are the way they are, or provide legal advice.

Reply by Bob_Chicago on 6/29/06 6:03pm
Msg #129703

u r rite . Going to do..........

something unusual tonight, have dinner with
my wife at a nornal type people time to dine.
Had a very good EOM, hope it lasts.

Reply by patricia on 6/29/06 6:12pm
Msg #129705

sometimes I get loans that are interest only but the note shows the fully amortized payment and later in the documents there will be an addendum that shows the interest only amount and for how long that payment will be accepted.