Posted by Ginger Peters on 10/3/08 4:16pm
Msg #266271

RESPA's

I have a question for all of you other Notaries. I've been asked to do 2 RESPA signings. They aren't traditional refinances, they just fiddle with the interest rate to make things easier. However, both times I've tried to do them, after the company had assured me several times that all was going fine, I called the "borrower" and both times they said they decided not to do it and had *already told* the company "no." Each time the company had assured me things were going to fly. I printed a 40 page document, and called the borrower and no soap. I was left with a pile of useless papers to dispose of and fairly irritated. I don't care how many times the company says "yes", I'm not going to print another page from them unless I talk to the borrower, 1st. What do you gentle folk say? Ever done RESPA's?

Reply by ReneeK_MI on 10/3/08 4:40pm
Msg #266278

Really depends on the L.O.

The way I view these 'RESPA' signings is as a sales tactic from the L.O., and I'm sure it probably does create a higher rate of actual loans. Some L.O.'s are good, some not so much. Some hope that your showing up on the doorstep creates some kind of 'guilt' level or something and sways the applicant (or psuedo-applicant, as the case may be) into filling the docs out. There is absolutely NO other reason that I can dream up, to have SA's doing these - other than as a sales tactic.

Anyway - some are good, some not so much. =)

Reply by MW/VA on 10/3/08 4:44pm
Msg #266279

Yes, these are also referred to as "Loan Modifications". You learned a lesson like most of us have to go through, and not print docs before you can confirm with the borrower that this is a go. My experience with these is that they are a pain. I had one a couple of weeks ago, was told that the borrower had the docs & I was to set up appointment with him. I made a lot of phone calls & was having a difficult time reaching him to set the appt. A few days later the tc called me to say he had gotten his own notary. I try not to take many assignments that are more trouble than they are worth. It's a peculiar business. I bought a good shredder & it gets a lot of use.

Reply by jojo_MN on 10/3/08 10:32pm
Msg #266313

'Yes, these are also referred to as "Loan Modifications". '

Loan modifications normally are modifying a loan. Example: Borrower currently has an interest of 8.5%. Instead of doing a complete refinance, the lender will do a modification. Only a modification to the note will be sent out with a couple of other docs to be signed changing their interest rate to 7.24% (as an example). There usually isn't a new mortgage signed or anything. Most modifications I've done are only around 4-6 pages long.

RESPA signings are where you are having the loan application documents signed and picking up any supporting documenations. There usually aren't any notarized documents in a RESPA signing. RESPA documents are required by law to be signed within three business days of taking a loan application.

They are totally different from each other.

"I'm not an attorney , etc. . . ."

Reply by ReneeK_MI on 10/4/08 2:37am
Msg #266316

Minor correction that changes the whole picture

RESPA requires that certain disclosures be PROVIDED within 3 days of applying for a loan - not signed, just provided. Handed to, or mailed within 3 days (unless the application is declined within that 3 days).

This is why I'm of the opinion that sending live bodies out to a doorstep, application & disclosures in hand, is nothing more than a sales tactic aimed at 'hooking' borrowers with an increased sense of engagement to that particular L.O./lender. This can all be done by internet, phone &/or mail.

Reply by Virginia/PA on 10/4/08 7:28pm
Msg #266363

Re: Minor correction that changes the whole picture

I've done a few RESPA's and only one turned into an actual signing. One I did, I was called by a title company I regularly work for but they indicated that the l/o is the one who will pay me. The t/c called me a couple of weeks after the signing and asked if I had been paid. I had not. They were following up on my behalf to get payment. The t/c said that apparently the l/o didn't realize that he had to pay the Notary for the signing and that it wouldn't be paid on the HUD. I'm still waiting for the check. That's how I found out the l/o is the one who pays for RESPA's.
You really are just a warm body showing up with no notarized documents.

Reply by Lee/AR on 10/3/08 5:10pm
Msg #266282

Renee pretty much has it right. I accepted 1 a long time ago & after much time spent with 'potential' B, they refused to complete the process. I did get paid, but once was enough for me. I don't do RESPA's for the simple reason that an LO gets paid 10 to 20 times more than I do for the same work. They want the money--let them do the work.

Reply by Linda_H/FL on 10/3/08 5:12pm
Msg #266283

It's my practice to never print until I've touched base with the clients. Avoids hassles like you've had. Was this the same company for both? If so, did you talk to them about a modest print fee - $25 or so for both sets? Might be worth a try...