Posted by NCLisa on 4/10/08 8:41pm
Msg #243137

Mtg Broker incentives to push e-closings.

I worked on a closing as a paralegal for a local attorney earlier this week. It turned out to be an e-closing, and the borrower was not happy about it at all. They spoke english very well, but it was not their first language. The hated that they could not turn pages, and take turns looking at docs, that they, the MB and attorney had to sit in front of that little screen to read the docs. They hated all the scrolling up/down and back and forth. If they hated it so much, why was it an e-closing you ask?!

It was an e-closing, because the MB forced it on the borrowers. Why did he do that? Because it clearly spelled out in the lenders instructions that if it closed as an e-closing that the borrower would receive an additional $1410 MB Prem (pd by lender). If it closed as a paper loan, the lender would only receive about $2700 in broker fees.

Reply by Lee/AR on 4/10/08 10:31pm
Msg #243154

Knew there had to be some ulterior motive for this insanity. Thanks for letting us know what it is. Hmmm.... they can get another $1410 while arguing with us over $10. Grrrrrr

Reply by A-1 Signing Agents, LLC on 4/10/08 11:13pm
Msg #243165

Silly question maybe but...do the borrowers get a copy? And if so, from who? What do e-signings typically get paid?

Reply by NCLisa on 4/11/08 7:20am
Msg #243180

As I said, this was done by a real estate attorneys office that did the entire closing, so they got the entire "settlement" or "attorney" fee.

When they had finished the e-docs portion, a copy of all the signed docs were printed, and given to the borrower, along with copy of the unsigned docs that required a wet signature.

Reply by sue_pa on 4/11/08 7:29am
Msg #243182

First comment is that it's the borrower's fault and they have no right to complain. No one can 'force' me to do anything at this point in my life - especially if the only benefit is someone else's pocket.

But, my real comment here is about ... that they, the MB and attorney had to sit in front of that little screen to read the docs. They hated all the scrolling up/down and back and forth...

How does this actually happen? At my house, when I am trying to look at somethign on the computer screen with someone else we are never happy - one person gets the 'good' chair and someone else (seldom me) gets the kitchen chair. How exactly are these logistics to happen? I clean off a kitchen table at least once a week for borrowers who think the little end they've pushed stuff off of is good enough. I've had plenty of houses where there is NO room to sign.

So, we end up in a house with a nice clean empty table. Does the notary sit down and have each borrower hover over one shoulder breathing on her neck and face? Not my neck and face. What about the nice clean house I was in on Tuesday? Couldn't have asked for a better spot to huddle together - except I was ready to throw up by the time I walked out the door because he spit tobacco into the empty coke bottle abuot every 30 seconds. I truly would walk out if someone tried to do that within a foot of my face while we were huddled together.

Do we all 3 squish chairs together so I'm sandwiched in between them? Not many of the borrowers I've been with are going to be smushing me with their thighs.

I've got a big monitor but still have trouble reading the screen and am hunched up close more often than not. These peoplel always are searching for their glasses and mention how they need new ones while pushing them up, pulling them off, holding the paper up close, holding it at arms length.

Maybe it's just because I'm getting old but ... I just don't get the logistics of this happening in many of the homes I've been in.

Reply by CF on 4/11/08 7:40am
Msg #243184

Sue- these are very valid reasons. I know that these are going to be a big issue more often than not. Even at the clean houses; I dont want to have these borrowers all over me in my space.

I cant even imagine going through this process with the borrowers that arent even capeable of signing the paperwork, let alone adding a computer to the mix!!! This is going to get interesting- and I mean real intersting!!!!!!!!!

Dont even get me started on the nasty -dirty houses....imagine your computer cord rolling around on the dirty floor.....I am getting out the anit-bacterial as I type!!!!

Reply by NCLisa on 4/11/08 7:49am
Msg #243187

I know, 4 people in front of the laptop was amusing. My business partner and I were in the other room trying not to laugh. With most laptops, even anti glare screens, have a glare unless you are directly in front of it.

Reply by Linda Hubbell on 4/11/08 8:14am
Msg #243190

Ugh..Sue...I agree...doesn't sound comfy at all

and let us not omit that group of people who have to hold their kids on their laps while they TRY to sign....make that 5 or more people around the teeny monitor!!

Reply by Philip Johnson on 4/11/08 10:42am
Msg #243210

What makes it worth an extra $1410?

Why would the "bank" part with an extra $1410 to keep it electronic? I assume the borrowers walked out with a paper copy, I also assume there were some notarized docs that were paper as well.
I cannot imagine any lender paying $14.00 a page (thinking it was a 100 page doc) to keep it all electronic. Also if it was for the borrower's benefit why not credit it in the Hud? We all know that you cannot use YSP after the fact to payoff the borrower. Something just doesn't add up for me.

Reply by NCLisa on 4/11/08 11:00am
Msg #243214

Re: What makes it worth an extra $1410?

I did put it on the hud, it showed as "Mtg Brk Prem pd by L" and POC1410.00L. Lenders instructions clearly stated that the broker was to get this premium only if this was an electronic closing. If it was not going to close electronically, then the broker was not to get that additional premium. If something had happened, and the broker did not come to close it electronically, then all I had to do was remove that line from the hud and reprint. The YSP was shown on a different line.