Posted by Jones - Chelley on 8/19/09 10:28am
Msg #300784

Respa signings

I just wanted to put an FYI out about Respa signings and payment for the service. Respa signings are basically the application for a Veteran's loan and it proceeds the actual closing of the loan by anywhere from 1 week to 3 weeks...rare occassions, sometimes longer. Because these are not the signing itself most programs for closings are not set up to input the data for it...which means, companies have to keep record of the signing using an alternative method. For us, it means using physical files with invoices and a spread sheet. Now, anyone who has kept records like this...knows there is a lot of room for human error. I am not offering an excuse for invoices for service being paid late...just an explanation as to why they sometimes happen. The reason I am sharing this is simply because I want to offer advice on how to protect yourself from this happening. When you accept a respa, explain immediately to the scheduler that you require payment regardless of when the file closes...or if the file closes...and set a date. I never suggest 30 days...that is far too long for someone to lose a paper trail...out of sight out of mind. However, if you have your days set at 30, I would 1st...make sure an invoice for service is sent the day you complete your signing, follow it up with an email stating it has been sent with a date you expect to be paid. Don't call someone on the the 31st day and say...hey, where's my check? My pay days are the 15th and 31st...do you think I am going to wait until the 16th and 1st to let someone know I didn't get paid? You all provide a service, you deserve your pay. Give the good companies the benefit of the doubt and use wise billing methods when it comes to respa closings....as a matter of fact all closings. If a company doesn't respond in a positive way...don't accept anymore respas from them. Since I am all about making things as smooth as I can for you all...cause I care and respect my notaries...I felt a duty to share this with you. I manage the actual loan closings...but I do understand how the respas work because I occassionally help with them. I just want to pass the word along because I think there are too many agents that aren't aware of the situation and I want you all to protect yourself. This being said...always...always...always, provide an invoice for your services. My favorite speech is, "please make sure an invoice is included in the package back to us...I don't care if it is hand- written on a napkin from McDonalds...we pay you when the loan funds and I want no delay in your payment." Do you know how many notaries do not do this...lol! Also, make sure you have the correct mailing address on the invoice and name that you want on the check. Again...protect yourself brothers and sisters...send your invoices and please...follow up on them, especially if you know a company has a problem with prompt payment. Anyone who might have any advice on how to make things smoother, please shoot me an email to the mail on notary rotary...any imput is appreciated.

Reply by Jim/AL on 8/19/09 10:42am
Msg #300786

Nicely put Chelley, hope that business is going well for you.

Reply by Jones - Chelley on 8/19/09 10:56am
Msg #300788

Thanks Jim...so far everything is looking up...I keep praying for fruitful times for all of us.

Reply by MichiganAl on 8/19/09 10:57am
Msg #300789

Paragraphs are your friends. n/m

Reply by Jones - Chelley on 8/19/09 11:45am
Msg #300807

Re: Paragraphs are your friends.

I try to make things short...just never really works out that way...lol.

Reply by Yoli/CA on 8/19/09 11:10am
Msg #300794

Well said. There are a few companies out there that state "invoice not required" (ie. automatically generated when signing coded complete, etc.). As a matter of personal preference, I always generate an invoice, print one for my file and either send one with completed docs or email to hiring entity.

Haven't had a complaint yet.

Thank you for your post!

Reply by notaryinmo on 8/19/09 12:33pm
Msg #300827

Thanks for this post. Hopefully it will help with A/R. n/m

Reply by Linda_H/FL on 8/19/09 12:33pm
Msg #300828

Although I appreciate you putting the "other side" of invoices out there...going to correct you here..

"Respa signings are basically the application for a Veteran's loan and it proceeds the actual closing of the loan by anywhere from 1 week to 3 weeks...rare occassions, sometimes longer"

Not true....Respa signings are the signing of the application and disclosures for ANY loan product...not just VA loans....also, the closings occur far longer than 3 weeks after application in almost all instances...not rarely....

Although I understand each company has different bookkeeping practices, it's my policy to get it understood up front I expect payment for these within 30 days...I can't wait until closing (which many companies ask me to do) because....suppose it never goes through?? Not to mention too many people have told me "we've been at this for 3 months".. 90 day wait is unacceptable to me.

RESPA signings do not get paid as quick as the loans...and I believe it's because payment for these, rather than coming out of the closing proceeds, comes out of the hiring party's pocket up front...and that's why they take so long to get paid....many companies just like to wait until THEY get paid before we get paid.

MHO

Reply by Jones - Chelley on 8/19/09 1:37pm
Msg #300857

I can only speak of my experience of respas...but thank you so much for educating me on the relation to other types of loans, I really had no knowledge of respas in that respect. My input is based on the respas as they apply to our company, I apologize if I implied otherwise. We have an excellent turnaround on our files...and I would say about 97% of our respas do close within the time frame I give...again...speaking from my experience and how it applies with us. I simply offered my point of view in hopes that it will prevent another aggrevation for notaries. I am not a fan of the 30 day wait for pay...I think the longest anyone should have to wait is (respa) two weeks after they accept a closing...not two weeks after they close the loan. 30 days, in my opinion is very gracious. I still advise...if you are told you have to wait to be paid for...especially 30 days...make sure an invoice is in the hands of the company that asked for it...and don't think you are being pushy if you check on the status during that wait. Call them...send an email...send a fax...make sure they know that you remember they owe you. As for why our respas are paid later than sooner...well, we keep the same notary on the file for the actual closing (unless it is an attorney state) and to save expense since we are a new company...it is easier to cut one check for both closing instead of two. Since we close most of our respa apps fairly quickly...this usually isn't a problem. We still run into a few that slip through the cracks...I just want to give some advice on how to make sure you are not one of them. I am all about doing what's right for the notary...that's what keeps me in my seat here...doesn't pay if I lie or b.s. anyone....ya know. That is why I ask for input...thanks, you gave me food for thought and I do take it to heart and put good words to use for our company.

Reply by CH2inCA on 8/19/09 4:43pm
Msg #300916

Jones-Chelley, Thank YOU, Thank YOU
This is very good information and advice. I've done two loan applications recently, not VA but RM. I know that one of the loans was denied; but since the job was presented as a two part job I've been hesitant to send out an invoice!

Also: "When you accept a respa, explain immediately to the scheduler that you require payment regardless of when the file closes...or if the file closes...and set a date."

OK! Will do! Again thank you for the advice!

Anyway, I know I'm coming across as one of the nuisance newbies who want all the infromation handed to them. But I really do appreciate a nod in the right direction now and then.

Reply by Jones - Chelley on 8/19/09 6:48pm
Msg #300963

One thing you always need to remember, you are offering a professional service...you deserve to be treated as a professional. Set a time limit you find comfortable for each company you work with...it can't be across the board because companies pay differently. Never sell your service short or be afraid to request what is rightfully yours. A respectable company will never react in a negative way to your request. Your service is no different than...a doctor...you have to pay him when you have an office visit whether he treats you or not...correct? And...regardless...sending an invoice via email is a great paper trail for record keeping. Glad I can help.