Posted by Mary/Ca on 9/29/08 11:34am
Msg #265687

Ticor Title Company-tustin Ca

DOES NOT PAY IF THE LOAN DOES NOT FUND! But they don't tell you that ahead of time.
I did a signing for them on 9/5, for only $125. A few days later they called and said that the borrowers cancelled, but will be getting a new loan and that they would call me again for a 2nd signing.
So, I do the 2nd signing, for a agreed upon fee of $125. Then she sends the check for only $200 for the 2 signgs. She said it is their policy to NEVER pay if the loan does not close/fund. And that they did not recieve any extra fee, and that I was lucky to have gotten paid that much.
So, I emailed back, explained that was not a good policy, that I did the signing, etc.. and should be paid in full as agreed.
She emailed back, said they would pay the balance , and not use me again. Fine with me, I don't like the chance of doing the work and not being paid. My time is much too valuable for that.
Mary

Reply by Calnotary on 9/29/08 11:42am
Msg #265689

First of all, you don't charge 125.00 to a title. When you work directly with a title you should charge a minimum of 175.00 per a single loan. Always reply with your payment policy they can take it or leave it.

Reply by Mary/Ca on 9/29/08 11:51am
Msg #265692

Thanks for the advice! I am still learning this business! Now I know to ask about payment policies ahead of time. And to get an email or fax confirmation of the job. Mary

Reply by PAW on 9/29/08 12:03pm
Msg #265695

Typical "old school"

All too many NSAs were not around in the "good ol' days" when title companies hardly ever paid on loans that didn't fund. It was the risk the NSA took working directly with the title company. However, on the positive side, a title company usually paid more for successful loans to compensate for the few that didn't close.

Over time, thanks to the numerous signing services that popped up and the NNA's announcement of 'suggested' fees, title companies jumped on the lower fee bandwagon. Some of the companies would pay a signing agent out of operational expenses if the loan didn't fund. But many "old school" companies still hold on to the "no funding, no one gets paid" concept.

I have absolutely no problem working with a title company that pays equitably, considering the risk. For those companies, I accept the "no funding, no pay" philosophy as it really doesn't happen that often (with reliable lenders and title companies). Yes, it's a disappointment, but an acceptable risk if the fees are right.

Reply by Mary/Ca on 9/29/08 1:19pm
Msg #265712

Re: Typical "old school"

But if you don't get paid, i.e. No Fee, then the fee is not equitable nor right.
M

Reply by PAW on 9/29/08 2:19pm
Msg #265725

Re: Typical "old school"

You missed the point. A title company offers equitable fees for loans that succesfully close that include compensation for non-funding loans when you don't get a fee.

Would you rather get $175 for each successfully completed closing or $125 for each one you do? Do the math for 100 signings with a 10% (10 signings) "no funding" rate and see what you come up with.

100 x $125 = $12,500
100 x $175 = $17,500 minus 10 x $175 = $1,750 of "non-funding" leaving $15,750 actually received

So, by demanding that a title company pay you for every signing, you would loose $3,250 or $32.50 for each signing performed (based on 100 assignments and 10% no-signs).

I further submit that a 10% "no-funding" rate would be extremely high

Reply by goodgirl on 9/29/08 2:24pm
Msg #265728

I agree with Mary from this standpoint -
If a Notary downloads and prints 300 pages of docs and uses their paper and their toner, and drives to the borrower's home and spends an hour with them while they dicker back and forth with the LO (if they can contact the LO at all) and in the alternative, try to dicker back and forth with the SA, and then don't sign or exercise their RTC, who loses here
The SA did all the secretarial work and driving and printing at their expense. The SA did their job. How can someone justify not paying the person who did all the printing with their supplies. There's no justification for that, and no one can convince me that there is.
Sorry, I don't like the math.

Reply by Lee/AR on 9/29/08 4:38pm
Msg #265759

Depends upon how much your fee is--do the math. n/m

Reply by CaliNotary on 9/29/08 5:39pm
Msg #265774

It's not like it's completely one sided

The title company put a lot of work into the loan and they're not getting paid for it either.

It's called a cost of doing business, sometimes you have to give up a little to get a lot. I don't see why people think turning down all the work from a good paying company is better than taking it all and having the very occasional loss.

I don't know about everybody else in here, but my no pay rate is significantly less than 1%. Why on earth would I turn down business when there's a 99% chance I'm going to be paid in full for it?