Posted by MichiganAl on 11/2/08 1:37pm
Msg #268874

Would you EVER sign the HUD as the settlement agent?

I've been doing in house closings 5 or 6 times a month at a local title company. When they get busy they bring in 4 or 5 contract closers to handle the volume. They want all of us to sign the HUD, buyers statement, and sellers statement as the settlement agent. I've refused to sign something that says I prepared the HUD and swear to its accuracy. They don't think its a big deal for me to sign it. Of all the contract closers they've brought in, Renee Kovacs and I are the only two that won't do it. The others don't think twice about it. And these are not newbies, these are experienced signing agents. Now all of them have previously worked at other title companies, so I suppose they come from the mentality of an employee and not as an independent contractor.

I'll also say this, we function as much more than typical signing agents. We review the closing instructions and determine if the buyer needs to bring anything else to the closing, we verify that we've received HUD approval, verify that seller funds are in and seller docs have been signed by the attorneys who have P.O.A. for the lenders, we fax back any required post closing docs to the lender and await funding authorization, copy packages for all parties, and then when all that is done we take it to an employee who reviews everything and then cuts the checks. Still, I don't believe I should be signing as a settlement agent. I may be doing a lot of the leg work, but I didn't prepare the HUD and I'm not the one making the finally determination to release funds.

So am I wrong? Would you sign the settlement statement in this situation (or any situation)?

Reply by Linda_H/FL on 11/2/08 1:45pm
Msg #268875

No Al, you're right...and for the reasons you mentioned

You didn't prepare the HUD so why should you certify that you did and it's accurate. In addition, you also certify to this:

"I have caused or will cause the funds to be disbursed in accordance with this statement. "

You have nothing to do with disbursement of the funds (I presume) so IMO you and Renee are correct - you should NOT be signing.

Even when I DID prepare the HUD (and cut the checks) in my other life in CT I didn't sign it - the attorney I worked for signed it because he was responsible for the funds.

Reply by Mia on 11/2/08 2:07pm
Msg #268876

Are you any of the following?

Are you any of the following?
"Selecting a Settlement Agent
Settlements may be conducted by lenders, title insurance companies, escrow companies, real estate brokers or attorneys for the buyer or seller.

In some parts of the country (particularly western states), settlement may be conducted by an
escrow agent. The parties sign an escrow agreement which requires them to provide certain
documents and funds to the agent".

If you are not any of the above..............

Reply by snoopdogMs on 11/2/08 2:38pm
Msg #268877

Negatory

I call whatever agency that hired me and tell them that I cannot sign something that I did not prepare. For me, this does does not even fall into the category of should I or should I not.

Reply by ReneeK_MI on 11/2/08 2:41pm
Msg #268878

lol - ok, for me this is rhetorical, eh?

I'll add to Alex's grocery list of reasons why I will NOT sign anything as "Settlement Agent" (including Closing Instructions, Hud, Lien Letter, mark-up title, etc):

Lender's Closing Instructions & CPL clearly define "Settlement Agent" and I am not IT. Should anyone care to do the dot-to-dot picture, were I to sign - it would possibly negate the CPL coverage AND it would be (most likely) a violation of the Closing Instructions (which are, in fact, a legal contract).

In a file folder somewhere with the attorney of REAL Settlement Agent, there is a list of people covered under the E/O insurance policy. Unless/until they show me where MY name is included, I'm not signing.

Alternatively, they can provide me with a blanket Letter of Indemnification from all risk and litigation - and I'll sign whatever they wish.

Reply by ReneeK_MI on 11/2/08 2:53pm
Msg #268879

And while I'm on a roll ...

You know how you don't worry about choking on peanuts until you almost die from choking on a peanut and THEN you won't give peanuts to people that you love? ...

I used to be the person who called Settlement Agents to nail the person who signed the Hud, signed the Closing Instructions, signed the Lien Letter ... etc. Those items gave me the power to call back the funds. Now, if someone unauthorized to sign caused the call-back of funds (and do the math - if it's a loan that disbursed, and the lender has just cause to call back the funds, you know where that money comes from? Let's just say this - the lender doesn't care), do you think there's a CHANCE the attorney of the Settlement Agent is going to - in turn - try to nail the person that signed?

I'm thinking!

Reply by GA/Atty on 11/2/08 4:38pm
Msg #268881

Only sign it if you are the one disbursing.

Even if I am the one who prepares the closing statement, I will not sign it unless I am the one responsible for disbursing the funds.

Reply by MW/VA on 11/2/08 5:50pm
Msg #268883

IMO you & Renee are absolutely correct to refuse to sign as "Settlement Agent". The Settlement Agent is the TC, attorney, or whatever agent is responsible for preparation of the docs, HUD, & disbursement. We are sometimes referred to as "Closing Agent". I had one large TC also request that I sign the HUD. I don't & explained to them why I won't. Among other things, in VA we aren't required to have a TPL. Regardless, I never have the capacity of "settlement agent".

Reply by ChristineHI on 11/2/08 6:37pm
Msg #268885

No way. I was a loan processor for 15 years so I know that the escrow agent signs that document and any other "settlement agent" documents. That is not our responsibility. I would definately not sign their docs.

Reply by Julie/MI on 11/2/08 8:16pm
Msg #268887

there is a little law in michigan that says if a real estate agency is the listing agency, no you look it up yourself.

Reply by Claudine Osborne on 11/2/08 9:06pm
Msg #268888

I would never sign anything that does not pertain to me. I know my role and limitations! I would not take responsibility for something that I did not prepare, no matter who asks me!

Reply by Curtis Hull on 11/2/08 9:37pm
Msg #268890

NO You are not weong. You are there to witness the transaction and did noy prepare the docs that are being signed

Reply by Pat/IL on 11/2/08 10:02pm
Msg #268894

Al, if it is a local title company, I would guess you have access to the decision makers in the company. You and Renee have pointed out perfectly reasonable agrguments for not signing the settlement statement. I would be interested to hear their answers as to why you should.

You have already stated that you are returning the documents to an employee of the title company who will be disbursing the funds. Whether that is the same person who prepared the HUD or not is the concern of the title company's management.

Reply by MichiganAl on 11/3/08 12:42am
Msg #268896

It's a typical bureaucratic answer; this is how we've always done it and no one has ever made an issue of it before. Several years ago I lost a major client over the same issue. I refused to sign the HUD. Fortunately, this time it doesn't seem to be a deal breaker for them.

On Friday, I overheard one of the managers there giving incorrect information on how to sign a p.o.a. She told the closer to have the borrower sign as John Doe by Jane Doe, p.o.a. instead of the correct capacity of John Doe by Jane Doe, attorney in fact. When I tried to delicately correct her, I again heard the same response; this is how we've always done it. Ugh. It's hard to fight the "we've always done it this way" mentality. Until they get bitten in the rump, they don't see any reason to change or question anything.

Reply by sue_pa on 11/3/08 7:53am
Msg #268899

I have a different opinion on this. The "settlement agent" is not the individual signing the document - it's the entity who is listed as "settlement agent" on page one, the entity whose name is typed under that signature line on page 2 or 3. It is not the individual person signing.

When I worked in a law office, the law firm was the 'settlement agent', not me. I guarantee my boss was responsible for every part of that transaction, no matter what I did or did not do. I also can guarantee he NEVER prepared a settlement sheet nor wrote a disbursement check and yet when he was around I got him to sign the settlement sheets. In the large vendor management companies, the person preparing the settlement sheet is not the same person writing the disbursement the checks ...

That said, I've got no idea why they want us to sign. On purchases in the field, often times the seller's attorney wants a signature (and rightly so) on the settlement sheet but other than that, I don't know why they want us to do it.

Reply by NCLisa on 11/3/08 7:54am
Msg #268901

If you were being paid as a part time employee of that TC for those days, I'd sign the HUD. If they are still paying you as an independent contractor then I would not sign.

I've been on both sides of the table, as an EO/RE Paralegal, I did sign the hud. I would never have asked an NSA to take on the responsibility of signing it. In my capacity as an NSA only, I would not ever sign a hud. I don't want anymore liability than I already have.

Reply by Ronda Roaring on 11/3/08 10:06am
Msg #268909

I do it whenever asked. It appears as: Ronda Roaring, Notary Public for [or on behalf of] Blah Blah Title Company. It often occurs during a purchase. I've never had a lawyer present warn me against doing it. I'm not indicating that I prepared the HUD. I'm just putting a wet signature to the document on behalf of the title company so that the transaction can continue.

Reply by Linda_H/FL on 11/3/08 10:14am
Msg #268910

" I'm not indicating that I prepared the HUD"

Ronda - I'd suggest you read the statement at the bottom of the HUD - you most certainly ARE certifying that the numbers are accurate AND you will cause funds to be disbursed as outlined on the HUD - if you're not an escrow officer with control over this procedure and disbursement of funds you shouldn't be signing it...period...JMHO

Reply by Linda_H/FL on 11/3/08 10:15am
Msg #268911

Should add

that statement also indicates that you prepared the HUD...