Posted by Signing_Doc on 10/25/06 12:54am
Msg #154792

"Notary Disclaimer" Form...something gnu?

I just returned from a signing for a new ss and in the package was a form for the borrower(s) to sign which I've never seen before. Just wondering if you have and how you handled it?

"Notary Disclaimer"

Borrower/Buyer herein agrees that the notary sign-up has been arranged as an accommodation for the parties herein. In the event the escrow transaction cancels, Borrower/Buyer herein agrees to handle payment in full outside of escrow with the notary company directly. Borrower/Buyer hereby indemnify and hold harmless escrow holder and Title Company of any financial or legal obligations in connection with said accommodation arrangement."

(Signed and dated by both borrowers)

Any thoughts? I had them sign it, but explained that my fees are arranged by and through the title company and the service I contracted with. Thanks

"Doc"

Reply by christiSocal on 10/25/06 1:12am
Msg #154795

I had 1 ss that used something similar. I don't think many use this type of doc. It is rather uncomfortable. I don't like it and the few times I worked for that company, told the borrowers I didn't care if they signed, the ss was the one who contracted with me.

Reply by Ndwa on 10/25/06 1:13am
Msg #154797

Seen it all the times, can't complaint.

Reply by Brasring_Ca on 10/25/06 1:49am
Msg #154805

I work for signing services and title companies and have seen it from both. It is almost becoming standard for many of the ones I have been doing. I would say I see it about 70% of the time now for the past 3 or 4 months. I have never had anyone not agree to sign it or have a problem with it. Jenifer

Reply by Jenny_CA on 10/25/06 2:53am
Msg #154807

By any chance is that from : A Gnu Beginning out of CA? n/m

Reply by Jenny_CA on 10/25/06 2:56am
Msg #154808

never mind, you didn't mean the loan co. titled by that name n/m

Reply by John Temblador on 10/25/06 3:12am
Msg #154809

Re: never mind, you didn't mean the loan co. titled by that name

I have one signed at every signing, disclosure thru Goldenstatenotary.com.

Reply by LisaWI on 10/25/06 9:51am
Msg #154846

Re:John, I am curious

Have you ever had to enforce this disclosure and has any borrower said they wont sign it, because they did not hire you directly?

Reply by Roger_OH on 10/25/06 11:28am
Msg #154861

John, I am curious - me too!

Do you then go after the borrower, who had no say in the negotiation of the fee they are being held to? I don't think that's right - they are not the ones who hired me. It also puts the supposedly impartial notary in the uncomfortable/illegal position of having a financial interest in the outcome of the loan.

Reply by LisaWI on 10/25/06 11:36am
Msg #154865

Re: John, I am curious - me too! Roger

Roger, if I know my state well enough, most borrowers would reject this kind of a disclosure and say "I didnt hire you, this is not my responsibility." Doesnt this come back to the discussion about the borrowers having a choice in who they hire(title comp, settlement agent, ect) to do the closing???

Reply by SueW/Tn on 10/25/06 11:48am
Msg #154869

I am positive I won't phrase this correctly BUT

am I understanding the board correctly in that the BO has a CHOICE as to who they use to close (both Title and Notary)? I ask this because my business partner recently refi'd, told Title I would be closing as this was our business, Title told her no no NO, no outside closers, you must come to our office and close with one of our closers. Seems to me that IF they have a choice both in Title AND in a notary this would be a swell marketing tool. My LO buddy tells me Title must be on the approved list of the lender and that goes for apprasiers and notaries as well. So IF the borrower has the last word, where does that begin? With the LO?

Reply by LisaWI on 10/25/06 12:00pm
Msg #154876

Re: Sue

I am also unclear on this. Can we also tell the borrower they can request us to do a signing again, if the need should arise? I would love for this answer to be yes........back to the world wide web for some more researching Input>>>>>Need more input>>>>>

Reply by ReneeK_MI on 10/25/06 12:04pm
Msg #154878

Phrased perfectly ...

Borrowers do have the right to chose their own title co - HOWEVER, the lender will reserve the right to have that title co chosen from a list of companies they have approved. The lenders use various criteria prior to approving particular title u/writers AND agencies (such as their LACE rating, past experience/history, etc). Remember, the lender is obtaining a policy insuring that closing/settlement - even though borrower is PAYING for that policy, lender wants policy from reputable company. If a borrower ever absolutely insisted on using a particular company, and the lender they've chosen couldn't approve that co - the borrower's 'choice' would be to get another lender who could (and that's assuming it was possible).

THAT being said - It would seem unlikely that a borrower could chose their own 'outside' closer, for the same reasons (insuring criteria). How could they be expected to insure something, if they had to cast the risk to the borrower's choice instead of their OWN choice?

Reply by PAW on 10/25/06 12:08pm
Msg #154881

Re: I am positive I won't phrase this correctly BUT

My take on this, purely from a contractual perspective, is that the lender has an arrangement with a title company, but, the borrower has the right to choose what ever title company they want to do the closing. The signing agent is employed (not as an employee, but as in 'working for') the title company, so the borrower, in effect, cannot specifically select the actual agent to perform the closing, only the title company. With the title company, comes all the employees and contractors, lock, stock and barrel.

It's the same as if you hired a general contractor for home repairs. That contractor allows you to approve (or select) the specialty subcontractors. The GC hires a roofing contractor to repair the roof. You have the right to choose a different roofing contractor (company), but you cannot select the particular worker hired by the roofing contractor.

Reply by Ndwa on 10/25/06 12:10pm
Msg #154882

Re: I am positive I won't phrase this correctly BUT

Aside from hiring your own appraiser who could be bias in value determination, I think everyone have the right to choose what ever agency to service their loan. Last one I did the lender had BO sign off on an authorization that they let lender choose escrow/title insurance, it also list name of the homeowner's insurance agent as BO's choice.

Reply by SueW/Tn on 10/25/06 12:35pm
Msg #154891

SOOOOO bottom line is

BO has the "right" to select a lender, and even though they sign a doc stating they have "choices", it's all up to lender. Technically they can select Title but if not on lender's approved list, deal is off. Of course they can select insurance company but anything else is not going to happen. In other words this disclosure is just another reason to kill yet another tree? I guess "choice" is in the eye of the beholder???

Reply by ReneeK_MI on 10/26/06 5:20am
Msg #155116

Re: SOOOOO bottom line is

Well ... yeah, sort of! lol But bear in mind that the lender has the means & knowledge to weed out the good from the not-so-good when it comes to approving a title co, and their list of "approved" will have hundreds, maybe thousands of agents the borrower can choose from.

Typically, the mtg broker chooses the title agent, usually from a short list of those he's allowed to use (having been approved by HIS powers-that-be), and usually he'll have a 'buddy' type relationship - just the kind you form when you do business regularly with someone. If the broker then uses a lender that has not approved HIS choice of agents - he can submit that agent for approval and hope they pass muster - or, if not, find another lender who WILL take them (or, alternatively, find another title agent off the approved list).

Chosing the title agent happens AT THE TIME OF APPLICATION, not at the time of closing. Part of the services they provide is the title search, and that gets done right away. Borrowers definitely have selective memories, and many times they just either don't understand the conversation, or don't remember - and I'm sure, plenty of times L/O's fail to advise them RIGHT THEN to provide their choice. It's not hard to submit a particular agency for addition to the 'approved' list - but it does take time, sometimes a couple weeks.