Posted by Ronnie_WA on 9/27/07 12:37pm
Msg #213471

e-signings affecting my business

My largest national client orders have dropped off substantially. They said that not only is the market affecting orders, but they're under instruction (for cost containment purposes) to steer as many signings as possible to their e-sign department. I didn't think WA would be affected since e-notarization is not even in the planning stages here. The way the title cos get around it is to have the BWR provide them with a hard copy notarized POAi and then, when they approve all online with 1 e-signature, the title rep signs on their behalf. The long-term prospects for us are looking dimmer by the day.

Reply by CJ on 9/27/07 12:41pm
Msg #213472

This is terrible!

On the other hand, I know a LOT of borrowers who would be VERY hesitant go give POA to the title rep sign everything for them. I wouldn't.

Reply by John_NorCal on 9/27/07 12:44pm
Msg #213474

You got that right CJ! n/m

Reply by Ronnie_WA on 9/27/07 12:53pm
Msg #213481

Re: This is terrible!

The borrower goes through the closing on the phone with the title company and, at the end, they must affix their electronic signature to permit the title company to proceed with affixing their own signature as attorney-in-fax. The BWR is safeguarded. sob sob

Reply by Ronnie_WA on 9/27/07 12:57pm
Msg #213485

Re: This is terrible!

correction - "they do it on the phone" ... they can do it by phone while at the computer, or they can also use the meeting function similar to "Go to Meeting"

Reply by Todd/OH on 9/27/07 12:51pm
Msg #213480

I can see a lot of companies doing it this way, whether we or the public like it or not. Think of the cost savings. Those of us who are experiencing 75% drop in business - well it's going to be 100% soon.

Reply by Prime Processors, Inc. - Patrick Lawson on 9/27/07 1:03pm
Msg #213489

This is a company called LSI. As I understand the signings are limmited to Helocs and closed end 2nds. Encourage brokers and borrowers to do true paperless closings like those offered by Amtrust and Stewart Lenders services. Flagstar is also moving to paperless closings...these programs us a signing agent. I keep a blog on this at eclosing.blogspot.com and http://www.closingprime.com/forum/forum.asp?FORUM_ID=7

Reply by Ronnie_WA on 9/27/07 1:10pm
Msg #213493

Mine isn't LSI but I'll check out your blog. Thanks much!

Reply by Todd/OH on 9/27/07 1:12pm
Msg #213494

LSI was my largest customer. I haven't heard from them in two months. It's obvious why.

Reply by Kate/CA on 9/27/07 2:16pm
Msg #213501

Just curious if you have heard, what do they think the over all savings in doing Esignings amounts to and from what catagories. I like the site.

Reply by CJ on 9/27/07 3:01pm
Msg #213507

Hmmm

Does this mean title companies will need to be hiring lots of local people to do their eloans? I can only imagine how many overnight packages they get each day. But if someone has to sit with the eborrower at the title company, who is going to do that? If the borrower is sitting in front of his computer trying to figure out each paper, that is going to take him forever. I know I speed things up a lot by saying, "This means they might sell the loan, no they are not going to change your terms. This means you DON'T live in a flood zone." etc.

Reply by Dorothy_MI on 9/27/07 3:29pm
Msg #213512

One thought I've had

Are these title companies going to be willing to accommodate the borrower time frame? As we all know, the great majority of our signings are during non traditional business hours to meet the borrowers convenience. Some how I just can't see a title company advising their lender that they're available 24/7.

Now what can we do to conteract this. I had an epiphany today after my 1:30 p.m. closing and the borrowers said they were so glad to be able to do this in their home at a time convenient for them. I said, "If your loan officer calls to make sure that everything closed OK, please tell them how pleased you were to be able to sign in your own home at your convenience." As soon as the words left my mouth, the light bulb went off. We can in our own way, try to keep as much business for NSA's as possible by saying this to all our customers and ask them to tell their loan officer or customer service follow up person. If the lenders keep hearing this same refrain over and over again, it might make a difference. (Just remember how the American Public rose up and inundated the Senate with mail, faxes and phone calls and then again did the same thing this week with the Dream Act) Business does listen to their customers if they get enough feed back. I'm going to post this as a separate thread also.

Reply by Todd/OH on 9/27/07 4:26pm
Msg #213520

Excellent thought you had - -

If the consumer understood that they can close in their home, and insisted that it be done in that manner, e-notarization, ePOA, etc. would not be an issue. The power is with the consumer. If the mobile notary is eliminated, that's a savings of $400-$500 per deal. That's a guess, not from any math.

What would really help if there was some sort of legislation that could be drawn to cause such changes. But, since we're independent and the title / signing company will call us if they like us, I don't see much chance of that.

Reply by MelissaCT on 9/28/07 9:28am
Msg #213610

Re: Savings to whom?

I'd bet dollars to donuts, the borrower wouldn't be seeing that "savings" listed on the HUD.

Reply by Todd/OH on 9/28/07 9:53am
Msg #213617

Re: Savings to whom?

The lender or title company pays a signing service to find the notary. That's where the $400-$500 comes in. The lender always uses someone else and the title company sometimes does.

Reply by Becca_FL on 9/27/07 3:03pm
Msg #213508

Re: e-signings affecting my business - Patrick

Has your company been able to get through to the FL SOS about assigning eseals? I want my eseal, but am not willing to join the NNA to get it. It seems the NNA has monopolized the eseal procedure here in Florida. I've tried to get answers and so has Marlene with the USNA.

I am encouraged by the news last month (see below) and want to be prepared in January 2008.

"States are now turning instead to “technology neutral” laws to implement eNotarization. “Technology neutral” statutes — including HB 1305 — authorize Notaries to use any form of technology meeting certain security and verification requirements to perform a legally acceptable eNotarization. "

Reply by Todd/OH on 9/27/07 4:29pm
Msg #213521

Re: e-signings affecting my business - Patrick

Becca, your thought of getting prepared for 2008 is correct. We all would be wise to forget any new business for 2007 (we get what comes) and prepare for 1st QTR 2008. We need to do something else in the meantime.

Reply by Margaret_FL on 9/27/07 7:31pm
Msg #213549

Re: e-signings affecting my business - Patrick

You are right Todd. It took me 3 months to get my eseal but now I am prepared.

Reply by R and R Notary on 9/27/07 10:31pm
Msg #213571

This is one time that I'm glad I live in a witness (2) state.

Reply by MelissaCT on 9/28/07 9:31am
Msg #213612

Re: e-signings and witnesses

Glad you brought up that point. How would the TC handle witnesses? Have someone in the title office or lender's office (possibly party to the transaction, at least through association with the company) act as witness? I can't even count the times I've had a lender/TC/LO tell borrower that they DON'T NEED a witness in this witness state.