Posted by Doris_CO on 12/14/07 2:01pm
Msg #226063

New Modifications

There have been speculations on what the new modifications with the interest rate freeze will look like and whether or not a notary public would be needed. Well, I think I closed one yesterday. This was originally an ARM with a "Pick your Payment" feature. The modification reduced the interest rate, placed it on a fixed rate for five years then it would revert to an adjustable rate based on Libor. There was only the modified agreement which was notarized. No RTC. And, in this case, the borrower did have to send a check with the agreement.

Reply by ME/NJ on 12/14/07 2:22pm
Msg #226064

I think I will see alot of these in the future in my area. How big was the package? Did you charge you normal re-fi fee?

I am wondering what I would charge for this type package, if its the size of a small HELOC package I know not to charge the price of a re-fi package.

Reply by LisaWI on 12/14/07 2:40pm
Msg #226065

Received a call to do one on Saturday. Although it sounds quick and easy, the comp offered me $35. Dont know if thats in the ballpark or not, but then again this comp is a $40 comp if they can get away with it. I asked for a higher fee, but it was rejected.

Reply by PAW on 12/14/07 2:46pm
Msg #226067

Mods that I've done in the past were only a few pages (basically re-writing the Note) but did require the signatures to be notarized. Since there's no increase in the loan, there would be no RTC. Takes about 10 to 15 minutes tops to do these. (And that's if the borrowers decide to read it!)

Reply by Lora/FL on 12/14/07 3:21pm
Msg #226073

So...is a Settlement Agent involved in the transaction or just the lender? Meaning, who would be making the contact to the signing agent?

Reply by PAW on 12/14/07 8:39pm
Msg #226118

The ones I have done have all be lender initiated. That is, there is no "settlement" involved as it is only modifying the terms and conditions of the loan, e.g. the Note.

Reply by MikeC/NY on 12/15/07 3:05pm
Msg #226242

I had a few of these last month. They are really small packages - 3 or 4 documents to be signed, one (the modification agreement itself) requires notarization. You're not going to get more than $35-$45, so they're are only worth doing if they're within a few miles of you.

Reply by Doris_CO on 12/14/07 4:41pm
Msg #226097

There were about 7 or 8 pages in the package. A two page letter describing what was modified and the new loan agreement which was about four pages. There was just one page within the new loan agreement for signatures and the notary certificate. The documents were sent to the borrower so I didn't print anything except the signing confirmation to fax to the signing service after the modification closing. The fee was typical for a modification and I only do those that are within a few miles from my home. Otherwise, they aren't cost effective.

Reply by Lora/FL on 12/14/07 7:08pm
Msg #226111

Gotcha Doris, thanks for the details-it helps get prepared!