Posted by LynnNC on 4/22/08 10:11am
Msg #244473

I had my first E-Closing

I had my first E-Closing for AmTrust yesterday and it took at least 15 minutes longer than a normal all paper signing. The two borowers sat on stools at the kitchen island, and I stood behind them.

In this instance, we used the borrower's laptop, but two companies that have solicited me to handle such closings for them, require that I have a laptop with a wireless card. One problem I see with that is the borrower would not be able to save the documents from the AmTrust website.

I hope that this is not the way of the future. I am sure that lenders think that E-Closings are less work for notaries, but, that is not the case. I will see how it goes with a couple more, but, I might start charging and additional fee.

I am not going to rush out to get a wireless card and start paying a monthly fee for it.

Reply by Lee/AR on 4/22/08 10:20am
Msg #244475

Considering what I've read, heard, been told, asked to do...

I am questioning the lender's sanity and wondering exactly what the motivation for this type of signing REALLY is. And, no, 'less work for the notary' doesn't make the top ten reasons.

Reply by TRG_wy on 4/22/08 10:23am
Msg #244476

It's a new and hip thing for them but not the best plan for the borrower or us. I personally would not accept this procedure for my loan. I want a hard copy in my hands.

As to wireless: Unless you are in an urban environment it wont happen. Most of my work is rural; no cable, limited telephone (dial-up modem), limited cellular coverage.

Reply by jojo_MN on 4/22/08 10:49am
Msg #244492

I had a wireless card for my laptop from three different carriers. In my part of the country, the coverage was very minimal. I was being billed over $70 a month for service I wasn't getting. Until coverage is better, I won't be buying another one.

Reply by Roxie Wood on 4/22/08 10:56am
Msg #244495

I had one of them, The borrowers and LO did not like the Idea. and they also have to sign at least 70 pages anyway. So we started the signing of doc's and then got on line. would not let us in cause of an error. so we got the ok to finish signing by hand. when we got done. the company called and said it was fixed and the borrower's said know way, it did take alot longer and we didn't even do the e-closing cause of the error. my frist and last time.

Reply by MW/VA on 4/22/08 11:33am
Msg #244501

I've read about this on several sites. The movement is toward the use of more technology/less paper. I don't think the motivation is for less work for the notary/closer.
I do think it is all about the premise of saving time/paper. From our standpoint, it appears that it will add a lot of expense (most aircards are about $70/mo) plus the price of a really liable laptop. We're not at their corporate level, so our view is different. I've also read that the "legals" (note, dot, rtc) still need to be paper. I think the thing to do is give feedback to AmTrust and let them know how this works in the field. I am not ready to absorb the extra expense of the experimentation. It has also been my experience that most of the borrowers I deal with have far less technology literacy than I do. It's difficult enough to get them to provide a copy of their ID & I've started carrying a printer with me to eliminate some of that hassle.

Reply by Charles_Ca on 4/22/08 12:29pm
Msg #244512

Exactly MW/VA Lenders' primary interest is cost reduction...

they don't care about reducing work for notaries especially since the cost of a notary has been declining over the last two years overall. Cost containment and cost reduction are what e-singings are all about. If you think that anyone other than the lender has any input in this you are mistaken. The consumer has always needed lenders and the lenders are in control it is not at all similar to a reatail business model where the customer is paramount. Think along the lines of health providers and the direction that has gone in over the past years. I have been pilloried for talking about e-closing but that is where the business is going whether anyone likes it or not. I've never said I liked it.

Reply by dickb/wi on 4/22/08 4:31pm
Msg #244563

right on target charles...it is comming in re also...... n/m

Reply by Teresa/FL on 4/22/08 12:37pm
Msg #244517

Borrower's copies - You could save the documents to your

laptop and then either email or transfer the file to the borrowers via a jump drive.

Of course this is one more step and more time to complete the closing.

It would be interesting to see the lender's rationale regarding their cost savings for this type closing versus a standard all paper closing. It appears to be a more costly transaction for the notary, both in time and resources.

Reply by LynnNC on 4/22/08 4:05pm
Msg #244556

Re: Borrower's copies - You could save the documents to your

I won't be willing to do e-closings...unless all lenders go that way in the future...if I have to transfer the files to the borrower's computer. There are enough closings out there that I won't want to bother with such extras.

I wonder if the lenders will pass their perceived savings on to the borrowers in the form of reduced closing costs, or is it their way of increasing profit at the expense of the borrowers' convenience.

The e-closing that I handled yesterday was for a title company and I received my usual fee. I do very little business for signing services, and there is NO WAY that I would handle an e-closing for one with their lower fees. One signing service sent me an email, and provided a 10-minute training session...they wrote that they will "continue to pay their usual fee" ...of only $75!

Reply by Gerry_VT on 4/22/08 2:48pm
Msg #244540

Motivation

I suspect the motivation for e-closings is automating the process after the signing. If the documents are paper, a person at the title company or lender must examine the paper to see that everything was completed and nothing was altered (say the borrower crossed out and initialed the pre-payment penalty clause). Then any handwritten information must be copied into the company's computer systems. With an e-closing, there is no opportunity to alter anything, and the software will stop and not allow the borrower to proceed until everything is complete. This means there is less inspection of paperwork back at title/lender, and fewer undetected errors. Obviously, the quality of the recordable documents is critical, so I'm sure the industry will want to pull those into e-closings as soon as they can.

Reply by LynnNC on 4/22/08 3:42pm
Msg #244551

Re: Motivation


As to the "quality of recordable documents", the Mortgage/DOT and riders are among the documents that still need to be wet-signed. The e-closing docs from my closing yesterday were: e-note, TIL, itemization of amount financed, 1003, RTC's , Answers to the Most Frequently Asked TIL Questions and:
Amortization Schedule
Correction Agreement
Notice of No Oral Agreement
Borrower Closing Certification
Attorney Selection Notice
Initial Escrow Account Disclosure Statement
Escrow Account Statement
Request for Taxpayer ID Number and Certification - W9
Customers Privacy Statement

There were two borrowers, and each had to accept a document, then go to another page to record that they did so, then go back to the document for the other to do the same thing, then on to the next document. It took a lot longer than for both to just sign.

A motivation for the title companies to use e-closings, according to the one that hired me to handle the closing, is that they save in shipping expense because of the decrease in weight of loan packages (they don't have to send the e-closing docs to the lender).

I think that it is important that we notaries provide feedback that, while there might be advantages to the lender and title companies, it is MORE work for us. They might be saving $$$, but, they shouldn't expect to reduce our fees. I will see how a couple more go, but if they continue to take more time, I will charge an additional fee of $25.

Reply by JanetK_CA on 4/22/08 8:06pm
Msg #244605

Re: Motivation

Makes a lot of sense to me. It seems to me to be in our best interests to try to get them to the mindset that some of the additional savings they realize in other areas should be directed to the notaries, whose time and expenses are increased as a result. Basically, it seems they are shifting to us some of the responsibility of certain steps. I wouldn't have a problem with this transition, if we are to be compensated accordingly. The more feedback that can be directed to them on this issue, the better, so hopefully they can proceed with realistic expectations. I hope that isn't a pipe dream!