Posted by valleynotary on 9/13/07 1:31pm
Msg #210767

Do you explain loan documents to borrowers?

Received a call from a company, said they need a notary to close a loan in my area, and the notary they are looking for must familiar with a 'particular' loan documents because they need notary to explain the loan documents to borrowers. My understanding is, singing agent may never explain the documents to borrowers to avoid the unauthorized practice of law. The signing agent must not exceed of the Notary boundaries as an impartial witness. Although, I have a real estate license, I replied with 'no' because they are looking for a Notary Public. What is the suggestion?

Reply by Lee/AR on 9/13/07 1:44pm
Msg #210771

Sometimes we get tangled up in semantics. I would have asked for clarification on what she meant by 'explain'.

Reply by TRG_wy on 9/13/07 1:53pm
Msg #210776

Agree with Lee.

I "explain" document title and only point out the more important parts indicated on that document. Example: Note - loan amount, actual intrest rate, first payment due date. I never go beyond what they can't read for themselves. If something doesn't jive, have them call their LO.

Reply by Ernest__CT on 9/13/07 1:55pm
Msg #210778

You are correct.

Notary Signing Agents do _not_ "explain" documents. We can _describe_ them ("This is the Note. It is your promise to repay the loan." We can _find answers_ to borrowers' questions ("What is my interest rate?" "The Truth In Lending documents shows [pointing] that your Annual Percentage Rate is 6.85%.".

Do not get trapped into Unauthorized Pratice of Law (UPL)!

Reply by Ernest__CT on 9/13/07 2:00pm
Msg #210784

How do I get rid of those emoticons?! NO wink intendid! n/m

Reply by Linda_H/FL on 9/13/07 2:07pm
Msg #210786

Re: How do I get rid of those emoticons?! NO wink intendid!

Don't use semi-colon and parentheses at the end of your sentence...that's what makes the wink - if you want to smile use colon & parentheses...

If you don't want any just use ! or "."....<G>..or that...

Reply by Sylvia_FL on 9/13/07 2:19pm
Msg #210795

Gosh Ernest - I thought you were winking at me!

I am devastated that you weren't

Reply by Hugh Nations Signing Agents of Austin on 9/14/07 1:20am
Msg #210906

Re: You are correct.

I explain documents; I do not describe them. I explain that the Deed of Trust is what gives the lender the right to foreclose on the property. I explain that the Texas Home Equity Affidavit and Agreement contains many provisions setting forth the nature of the loan, and both the borrowers' and the lender's rights and responsibilities because Texas is utterly paranoid about home equity loans. In other words, I explain the purpose of the document: The Marital Status Affidavit, for example, is requested because Texas is a community property state, and regardless of how the property is titled, simply being married may impact the ownership or interest.

If someone wants me to "describe" a document, unless they are illiterate, I'm going to hand it to them and tell them to read it for themselves.

You cross the line into the unauthorized practice of law when you offer judgments about how a document will impact a specific set of facts, or vice versa. I would not, for example, presume to judge >>how<< a couple's marital status might affect ownership or interest, but I feel quite comfortable telling them the purpose of the Marital Status Affidavit is so that the title company can ascertain that marital status poses no problem for the transaction.

Reply by Becca_FL on 9/13/07 2:26pm
Msg #210797

As a Notary Signing Agent we are not to "explain" the whys and what fores of a loan. That does not mean that you don't go over the doc to make sure the person has an understanding of what they are signing. Jeeze, people, if you are not going over the docs with your borrowers you are not doing your job and are performing a disservice to the borrower, the TC and the lender.

This from another realitter turned NSA...Ugh.

Reply by Charles_Ca on 9/13/07 2:46pm
Msg #210803

Relitter, did you say relitter..............?

I got into a huge fight over the use of that term over at BO. Smile when you say that Becca

Reply by Becca_FL on 9/13/07 3:32pm
Msg #210826

Re: Relitter, did you say relitter..............? Chuck

You know who this is for...and it ain't you or LisaP or many others on this forum that are realitters & NSAs. This is for the market drop outs that can't sell homes, but think they learned all they needed to know about being an NSA from prelicensing 101 and by attending a few closings.

Reply by Charles_Ca on 9/13/07 5:03pm
Msg #210842

Re: Relitter, did you say relitter? Chuck - I know Becca

that's the reason for the wink.

Reply by Charm_AL on 9/13/07 3:07pm
Msg #210812

yes you tell the borrower what the doc is and the pertinent info. No, you do not give opinion or advice and if there is a question and the 3 day RTC isn't flying, call the LO from the table so that he/she may interpret or define as to facts and figures.

Geeze this board has really digressed as of late and Becca, I'm calling my sister in Chicago to tell her you called her a realitter, (although she's not a signing poser) be prepared to have a beef sandwich flown your way, and let me tell you - open your mouth cuz they are damn good!

Reply by Sylvia_FL on 9/13/07 3:10pm
Msg #210815

Re: Do you explain loan documents to borrowers? - Charm

I'm calling your sister in Chicago a realitter!! (Now do I get a beef sandwich???? )

Reply by Charm_AL on 9/13/07 3:11pm
Msg #210816

you get a Combo baby!..... n/m

Reply by Becca_FL on 9/13/07 3:34pm
Msg #210827

Sounds Yummy, Charm! n/m

Reply by JohnnyB on 9/13/07 2:54pm
Msg #210807


Valley,

Who is the company that called you and why did they call you? Do you advertise on this site as a notary? Are you notary? The whole explanation of this situation doesn't jive

Also, signing agents may describe what the borrowers are signing, but singing agents may not sing the explanations to the borrowers, because descriptive songs are considered unprofessional

Reply by valleynotary on 9/13/07 3:53pm
Msg #210830

Thank you for everyone's opinion and great advice.

Yes, I am a notary of free member of this site. I didn't do signing job regularly because of job occupied. As a notary, I only explain the title of documents to borrows during the signing, I do not explain the content of document even I know what is in of documents. Person called is from an Encinitas Real Estate company whom need to have someone who can 'explain' the documents during the close.

Reply by NCLisa on 9/13/07 4:08pm
Msg #210832

Huge difference between explaining what a document clearly

states, and UPL! You are in an escrow state, when you closed on your loan, did you go to a TC and did the escrow officer go over your docs with you? The EO isn't an attorney! As long as you don't render a legal opinion, or give legal advice, it is not UPL.

One of the biggest complaints I get from BO's when I am the 2nd notary out is that the 1st notary didn't even point out the interest rate! It is your job to go over the documents with the borrower.

Reply by GWest on 9/13/07 5:08pm
Msg #210843

Re: Huge difference between explaining what a document clearly

I agree. I get borrowers that thank me for spending the time to go over the doc's with them. Alot of borrowers say that in the past notaries have come to their home and expect them just sign without any explanation. Unbelievable.

Reply by dickb/wi on 9/13/07 7:49pm
Msg #210872

BINGO lisa...exactly what i do....... n/m

Reply by MikeC/NY on 9/13/07 7:07pm
Msg #210863

My understanding of UPL...

is that you are attempting to apply the law to a specific situation.

I can tell you what the law is without a problem, but if I tell you what it means in your particular situation I may be guilty of UPL .Explaining things in general terms without addressing the BO's specific issues is not UPL, as far as I know.

You can certainly explain what a document is without getting into what happens if they sign it. A perfect example of this is the compliance and/or correction agreements that are included in most packages - you can't just shove this in front of them, tell them to sign, and then notarize. As a notary, you have to make sure they know what it is they're signing - and that means being sure they understand what the document says. A brief explanation of what a correction agreement is would not be UPL; however, if they ask "what happens if..." and you answer, you've crossed that line.

Just my opinion based on my work as a paralegal - I will defer to the opinions of actual attorneys, a profession of which I am not a member...

Reply by JanetK_CA on 9/14/07 12:53am
Msg #210904

If someone posed that question to me, my first reaction would be to think that they don't want a point-and-sign notary - they want someone who understands the documents enough to be able to walk the borrower(s) through what is there and to be able to find the right document with the pertinent information when they have questions. As someone else said, I would probably ask them for a clarification to make sure, but I think it's very likely that's what they meant. In my opinion, there's lots of room between point-and-sign and UPL!