Posted by Notary/VA on 8/21/09 2:22pm
Msg #301214

Loan App

I have been asked to complete a loan app for a company. This is a first for a loan app. . Is there anything particular I need to know before I go to the borrower's home?

Reply by Keystone_SA on 8/21/09 2:26pm
Msg #301215

Make sure the TC or Signing company gives you exact instructions as to how to proceed. See if there is anything you need to collect from the borrowers, etc. They should lay out a precise directive for you and the process should be easy.

Reply by Gladys Hamlett on 8/21/09 2:29pm
Msg #301216

Nothing is to be collected. What I got out of this was that I am to witness him filing out the app. and verifying identity. Nothing needs to be notarized which confused me.

Reply by Linda_H/FL on 8/21/09 2:36pm
Msg #301218

Most Respa signings the apps are already completed and you just go in for signatures and to collect supporting documentation (income letters, pay stubs, homeowners' insurance, maybe tax returns, bank statements, etc., etc.)...

No way would I sit there while a borrower fills out a complete loan app...unless I'm guaranteed $xx/hour, paid at the table and I don't answer one question. Isn't this the LO's job? Is this the new wave now - send us out to sit while they fill out the app? To me this sounds like a silly waste of time...why not just send it to the borrower with instructions, have it completed and return it to the LO...

Okay..I'll hush now

Reply by Notary/VA on 8/21/09 2:41pm
Msg #301219

That is exact same thing I was thinking. Its pretty simple the borrower could do this without assistance. I took this one but I want be taking anymore from Sunshine Signing. The borrower was provided a list of things that he should have already copied for me but I'm thinking this is not going smoothly. I will update you guys later on this.

Reply by Linda Juenger on 8/21/09 2:49pm
Msg #301221

I vowed to never take another Respa again. They take forever, at least the ones I've had do. The borrower never has everything they need much less copied for me. They can't find their ins policy or their last loan pkg to get the mortgage out or the Note. They are very frustrating to me. Another reason I don't do them anymore is that if the borrowers don't go through with the actual loan, then the company doesn't want to pay. I've had more trouble getting paid for Respa's than regular closings.
Then, the borrower looks over the GFE and it isn't what he was told on the phone. Then gets the LO on the phone and they talk for 1/2 hr while you sit there and wait.
I just talked myself right out of ever doing another one.
I wish you luck though. I may go very smooth for you and I hope so, but be prepared.

Reply by dickb/wi on 8/21/09 6:27pm
Msg #301256

double dittos linda...... n/m

Reply by MW/VA on 8/21/09 2:52pm
Msg #301222

Requests for RESPA (application) signings are common, Gladys. They're simple & don't take more than 30 minutes on average. The borrowers usually have been advised what documentation they need to furnish. If they don't have it they can fax it. This is being done quite a bit with FHA or VA.
I'm guessing that the companies want the paperwork signed & returned promptly, and setting this appt. gets it done. Most companies will promise you the final signing also, so it's a pretty good deal.
I wouldn't be so hasty to say you're not going to do these.

Reply by Linda Juenger on 8/21/09 3:20pm
Msg #301225

Obviously we've had very different experiences. No 2 alike n/m

Reply by CaliNotary on 8/21/09 3:24pm
Msg #301229

My experience has been

that they're more trouble than they're worth. I've only done a couple, and it's been a few years since I've done one at all, but they always ended up taking me longer than a regular loan signing because, even though they were given a list in advance, the borrower never had all of the necessary supporting documentation ready, there was always SOMETHING that they had to hunt for.

In theory they should be a quick and easy 50 or 60 bucks, but in reality, no way.

Reply by MW/VA on 8/21/09 3:45pm
Msg #301234

Lengthy thread posted recently about RESPA's, billing, payments, etc.--#300784.

Reply by Notary/VA on 8/21/09 4:08pm
Msg #301238

The signing was at 4:30pm. Customer stated that LO didn't explain anything to him and he needed time to look over the package. Called LO he said to leave paperwork. Called Sunshine and they said it was okay and that I would be paid 1/2 the trip fee, which isn't bad for 10 minutes of work and I travelled less than 2 miles. I was told that once he was ready it would come back to me. No he didn't have any of the documentation because he was NEVER told by LO to have it copied. Hopefully, if and when I go back he has all the paperwork and will have everything copied for me.

Reply by Linda Juenger on 8/21/09 4:15pm
Msg #301241

Glad you didn't have any more time into it and it worked out for you. More often than not, this will be the case, borrower not prepared, LO wanting you to do his work. I refuse to do that anymore. If they want me to do their job, I want part of their paycheck and that's never gonna happen.

Reply by dickb/wi on 8/21/09 6:25pm
Msg #301255

be sure to check your states mortgage broker laws.....probably thru the state agency that handles financing rules and regs..........they just changed the stats in wi whereby if u even juast take a loan app you need a license......things are slowly changing as a result of the preetory things that were gouing on......

Reply by PAW on 8/21/09 8:38pm
Msg #301278

Same here Dick. Our statutes paint with a very wide brush when it states that anyone involved in the origination of a loan, including loan modifications, must be a licensed mortgage broker. The statute was changed to redefine the term "mortgage broker" to include just about anyone involved in any piece of the origination process. It becomes effective 1/1/10. Bet there will be a lot of loan officers out on the street (or paying a fine of up to $1,000 a day).

Reply by Notary/VA on 8/21/09 10:11pm
Msg #301291

Thanks for the info. I am looking up that information for the state of VA.

Reply by ReneeK_MI on 8/22/09 5:17am
Msg #301327

MI Act 75 of 2009 prohibits RESPA 'signings' ...

If you're an independent contractor like we are, these will no longer be in your repertoire as of 7/31/2010. It is defined as "processing", and you will either need to be licensed (as an originator, under this same Act) or an actual W2 employee of a licensee.

Reply by MW/VA on 8/22/09 9:08am
Msg #301341

Re: MI Act 75 of 2009 prohibits RESPA 'signings' ...

Thanks for the update, Renee. That will certainly put an end to the issue for us.