Posted by LisaWI on 9/3/08 11:44am
Msg #263042

Settlement Corp

Anyone have payment issues with this company? Its too my understanding after searching and reading, they pay usually within 30 days.

TIA

Reply by CopperheadVA on 9/3/08 11:51am
Msg #263045

As far as I know, Settlement Corp pays on the 15th of the month that follows the month you did the job. For example, if you did a job July 1st, you can expect your check to be sent from them on Aug 15th. Actually, I think they base it on the month that the deal FUNDS in. So, if you signed on June 28th, but the deal did not fund until July 2nd, then your check would not be sent until Aug 15th.

Reply by ME/NJ on 9/3/08 11:55am
Msg #263050

They clearly outline payment policy with every closing package. Anything that funds in the prior month (cutoff is the 25th or 26th) Checks are cut on the 20th of the following month then mailed.

So any work in July you would not see a check till Aug 24th or so, now if you feel you did work that funded in July and did not show up on there payment sheet call them (may of canceled)

Never had a payment issue, they sometimes take alittle longer getting checks out (a few days) depending when the 20th falls.

Reply by davidK/CA on 9/3/08 12:18pm
Msg #263054

Re: Settlement Corp (and others)

I cannot understand why we as NSAs put up with this. In a very high percentage of loans I believe the SS gets paid by the TC when the loan is funded and closed. The TC has a fiduciary responsibility to disburse the funds, and only in rare circumstances would the TC not follow the rules.

I have never worked for a TC, but it seems to me that the settlement process REQUIRES that all the money collected from the borrower and lender be disbursed within a reasonable time period. I never hear that the appraiser has to wait 45 days to be paid, yet SS are constantly complaining that they haven't been paid so we, the NSA can't be paid for some additional period of time specified solely by the SS.

We as NSAs need to start insisting that our fees be listed on the HUD-1. If there is a SS involved their "split" should be listed as well. I don't care if the borrower knows that some other party is taking a portion of the Notary fee, it's the borrower's money being spent and IMHO they have a right to know who is getting it, and how much they are getting.

That way we can eliminate this constant problem of our waiting for our money, which as we all know sometimes (and way to often) never arrives.

Reply by CopperheadVA on 9/3/08 12:44pm
Msg #263060

Here's the rub: Settlement Corp IS a TC n/m

Reply by davidK/CA on 9/3/08 1:37pm
Msg #263069

Re: Here's the rub: Settlement Corp IS a TC

And now it appears that capital issues are effecting many TCs to the point that some of them are starting to use escrowed funds for operating expenses (which is clearly prohibited by law) and violates the basic trust placed on a "neutral" third party to collect and disburse funds as directed by the borrower and lender.

Look at the HUD-1. The NSA and/or the SS is listed at the bottom with the lender and TC and all their various fees at the top. What does that tell you about who gets paid first?

Reply by Pat/IL on 9/3/08 11:56pm
Msg #263151

Re: The settlement process

No funds should be held in escrow any longer than they are to be held under the lender's instructions and by law. The position of those parties listed on the HUD have nothing to do with the position in which the parties are paid. The position on the HUD is prescribed by...HUD.

If a party hired by a title company is not listed on the HUD, or if the subcontractor is not listed on the HUD, the funds are paid from the title company's operating funds. If that's the case, you are stuck with the contractual arrangement that you made with the party that hired you.

David, while some title companies have used escrow holdings to fund operations (and fancy cars too) I am pretty sure that is not a widespread practice. At least I hope it's not.