Posted by Negrete on 8/7/08 3:53pm
Msg #259156

TX Notary Question

Does a purchase need to close in an attorney or title office ?

Even if it is a california property ?

Reply by redraider/TX on 8/7/08 4:17pm
Msg #259161

Home Equity is the only loan that has to close in an attorney or title office.

Reply by Hugh Nations Signing Agents of Austin on 8/7/08 5:26pm
Msg #259180

Cash out home equity loans need to close in an attorney or title office, or an office of the lender.

Reverse mortgages are home equity loans, but the closing venue restrictions do not apply to them. The same is true with home improvement loans; I've closed many swimming pool loans at dining tables.

Also, after a home is subjected to a home equity loan, every refinance thereafter is regarded as a home equity loan, which carries a higher interest rate, regardless of whether no cash is being received and the refi is only to shorten the term, lower the interest, or decrease the monthly payment.

My understanding is that such home equity refis do not need to meet the venue restrictions. However, I have had lenders/TCs take different tacks, sometimes demanding the venue restrictions, sometimes not. I cannot definitively say one way or the other, so I just go with the flow from the guys who hire me.

The foregoing is all based upon what has been conveyed to me by lenders/TCs, and is not in any based on independent confirmation. In short, where closing venue is concerned, I do what I'm told to do. On the one time when I suggested that a reverse mortgage did not require a specific venue, I was told to shut up, sign, stamp and drop.

Reply by BrendaTx on 8/7/08 6:40pm
Msg #259192

Re: TX Notary Question - pretty much agree with Hugh but

**The same is true with home improvement loans; I've closed many swimming pool loans at dining tables.**

It's my understanding that if you were to get a home improvement loan for a new roof or for something such as siding, or windows...anything which is attached to the structure of the actual home you are living in that you need to close in a title company or law office, or a lender's branch...not the home. Pools are different. My source is a home improvement company, a title company employee and a lawyer. They all said the same on it. Haven't done my own perusal of the law b/c I just don't think it's that relevant to me any more.

**Reverse mortgages are home equity loans, but the closing venue restrictions do not apply to them. **

And, as I have done a zillion of these in homes I want to believe that, however, few title companies in Texas really agree with that premise, especially since the new changes came about a couple years ago allowing for equity lines in rev morts in Texas. I think it would be awful to enforce not closing RMs in homes...for the elderly, it is so convenient the way we do it.

Ever wonder why most rev morts are pushed through only a handful of title companies (which are connected to other title companies) in Texas?

Those are the ones who are pushing the envelope to the edge that the others see with tight boundaries drawn around. This comes from personal conversations with both RM LOs and with title company employees. Let's see...two of the bravest are Alliance Title aka LFC aka All Reverse (disappearing fast) and Title Stream. There are a few others which have taken up the business Title Stream lost and they did lose a wad of business awhile back according to my source reporting to me in July. They took their business to another title company in Texas.

One poster here who works in a Texas title company said no way that her group would do RMs outside its walls. I have the regs books at my desk at work. I can see why some tc's feel that way...but can I say it's against our law? Nope.

As far as Tony's question on the business of purchase, I think the above discussion on RMs and the law being difficult to nail down also holds true. Some would say "yay" and some would say "nay". Have I notarized signatures on loans which were purchases? Yes. For construction and new construction loans. Would I recommend it? I don't any more. I feel that the least little thread that can be unraveled the whole thing is the notary issue . . . and I just don't want to fool with the problems of that. But yes, I have knowledge that it is done every day. But the documents are not mailed to a notary signing "agent", they are mailed TO THE BORROWER and the borrower takes the responsibility for choosing to sign documents outside of the "venues" offered.

I'm no lawyer....just an observer.

Reply by BrendaTx on 8/7/08 6:42pm
Msg #259193

Re: TX Notary Question - pretty much agree with Hugh but

**Have I notarized signatures on loans which were purchases? Yes. For construction and new construction loans.**

As a signing agent, yes I have done this and won't do it any longer.

As a regular notary would I? Yes, if the borrower solicited me, I would.