Posted by Leon_CO on 12/18/08 3:02am
Msg #272273

This just in from AP ...

>> AP Top News at 2:09 a.m. EST
45 minutes ago

WASHINGTON (AP) — Homeowners around the country are scrambling to refinance their mortgages at the lowest rates since the early 1960s as the economy staggers through what's likely to be the worst recession in decades. Mortgage brokers are already reporting a surge of calls from borrowers trying to take advantage of the Federal Reserve's extraordinary actions this week. <<

There is more to this AP story that should be taken into consideration ...

"... But it was not expected to be a cure-all, and borrowers already in danger of foreclosure probably won't be able to take advantage."

------------------------------

I have already seen a surge in the amount of calls that I have received to do closings.

I turned down a request today because the caller said he could only pay $50. I told him my fee is $XXX, and that it has been that way for a long time. He said he would see if he could get it approved. He came back and said that, because of "market conditions" all he could pay is $50. He said he would find someone else.

What's disturbing about this is that there was a signing agent in my vicinity who accepted the $50. And there are no doubt a lot more who will gladly take that $50.

I did a closing today. The first thing the borrowers told me was that they already did this last week -- with another notary. But they have to do it again. So another company got the closing, and that company called me. To all those companies out there that pay $50, all I can say is: 'you get what you pay for.'

To be honest with you, I don't think that we should lower our fees because of "market conditions". If that caller today was talking about fewer closings, that is certainly no reason for signing agents to accept less money. Borrowers aren't paying significantly less in closing costs. At least not according to the HUDs I've seen.

I'm not doing as many closings as I was a couple of years ago. But I'm not going to try to make up for the lack of volume by accepting a lot of $50 closings.

If borrowers are going to be "scrambling to refinance their mortgages", as the AP story reports, then that is all the more reason for signing agents to stand firm, and not work for these low fees. Because, if on the one hand you have a signing service that says they can only pay $50 because of "market conditions" -- if there is an increase in business, are they going to raise their fees? I don't think so. And they will still be able to find signing agents who are willing to bust their butts for $50.

And this will never cease, whether "market conditions" are good, or bad.

So that AP story is both good news, ... and bad news.

Reply by 101livescan on 12/18/08 9:24am
Msg #272286

I've done quite a few signings this month already. Frankly, examining HUDs/settlement statements, I have not noticed that escrow, title or origination fees have been adjusted downwards to accommodate "market conditions", nor have appraisers reduced their fees. So why is the little signing agent with more costs today than ever, particularly fuel, paper and toner, be asked to whittle their fees to "under market conditions"? Beyond me!

Don't forget it's the holiday season, and if you're asked to go above and beyond your normal working hours, trudging in the snow and sleet, driving to Egypt, the pay should be adjusted commensurately.

Happy Signings this Holiday Season!

Reply by Teddog/CO on 12/18/08 9:35am
Msg #272290

101livescan

I agree with you 200% Never accept any job that will not pay your fee. We have to remember we are running a business and it's not getting any cheapier for anyone.

Don't you just hate it when you have to travel to Egypt

Happy and safe holidays to all!

Reply by 101livescan on 12/18/08 9:42am
Msg #272292

Re: 101livescan

Especially in inclement weather! last night because the Tejon Pass was closed, heavy snow fall, all the semi trucks/trailers were on the 101, it felt like I was on the Interstate 5, I could hardly wait to get off the road, solid with big heavy metal containers, and be the only one on the surface streets at 10pm. There is no hazard pay for this kind of travel as a signing agent.