Posted by Sharon S. Young on 3/30/06 9:37am
Msg #109714

Assignment of DOT

Recently I have run into more Assignment of DOT and Corporation Assignment of DOT. I understand that I do not notarize them, but I was wondering whether someone can explain to me exactly what and when they are used (in case I ever get questioned by the client).

Thanks,

Sharon

Reply by Jersey_Boy on 3/30/06 10:09am
Msg #109729

This doc is used for a lender to sell, transfer or assign the loan to another company. This is very common for lenders.

Company ABC sells the borrower on the loan, writes the loan and funds the loan using their own pipeline (funds). Usually before the first payment is even due from the borrower Company ABC will sell/transfer the loan to Company XYZ. Company ABC will sign the "assignment of dot" relinquishing all servicing rights to Comany XYZ or their successors (a company that buys them out, or a lender that XYZ sells/transfer the loan to).

Hope this helps.

Reply by Mung/CA on 3/30/06 10:50am
Msg #109749

I was wondering the same thing. Thanks JB. n/m

Reply by Jersey_Boy on 3/30/06 11:01am
Msg #109752

ps---

I work in a mortgage company and you would be AMAZED at how many signing agents will notarize this form when the SHOULD NOT... worst of all, the borrowers don't sign it, and the notary will still sign, stamp and seal the doc.

I crack up laughing every time I see one...

Reply by NJ_Notary on 3/30/06 1:51pm
Msg #109811

Re: ps---

Thats so sad, but hillarious in the same breath. If one only took the time to read that doc they would realize they are not to notarize it! Oye ve! Gotta love the wonderful State of NJ. I can think of a few Notaries one hand that have probably done this. Probably the same ones your thinking of. You and I get to clean their messes up.

Happy signing!

Reply by MaggieMae_CA on 3/30/06 1:44pm
Msg #109809

Explanation to borrower on Assignment of DOT

"This is an internal document your lender will use when transferring your loan servicing to another company."

Can't get much shorter or clearer than that.

Reply by Sharon S. Young on 3/30/06 3:15pm
Msg #109842

Thanks for the claification! n/m