Posted by JLG/CA on 11/5/09 3:06pm
Msg #309986

Reverse Mortgage Initial Disclosures

I received a call for a signing for reverse mortgage intial disclosures and I'm not sure what the appropriate fee is. I asked that the company forward a copy of the documents to help me determine what I should be charging. After looking over the docs, I only need to print 89 pages and nothing needs to be notarized. I was asked to travel about 30 miles.

What would you ask for to do this signing?

Reply by CopperheadVA on 11/5/09 3:10pm
Msg #309987

That many pages, I would charge the same as a regular loan signing fee.

Reply by Linda_H/FL on 11/5/09 3:21pm
Msg #309990

Agree...89 pages (don't know if you're printing a copy for them- I usually at least leave a copy of the GFE) - 60 miles traveled, plus however much to drop the package....

Yep...same as a loan signing fee - going to take AS long at the table if not longer...especially for reverse mortgage RESPA's. Trust me, they're not going to have everything copied for you...I'd allow 2 - 2.5 hours for this too....definitely full loan signing fee.

MHO

Reply by CH2inCA on 11/5/09 3:47pm
Msg #309993

I agree same as a loan signing.

BUT, I would suggest too that you have a clear agreement with the SS or Broker that if the loans don't qualify; YOU WILL STILL GET PAID.

I have three of these assignments that didn't fund because the home didn't meet the projected apraisal so the loan didn't happen; and whatever other reasons. And it seems that I won't get paid for these.

I've done these with the same SS; I will be happy to provide you with the name if you PM me.

Reply by MW/VA on 11/5/09 5:07pm
Msg #310007

I would find out if it's ok to take the app. under new RESPA regulations. We're not licensed in the mortgage process.

Reply by JLG/CA on 11/5/09 5:50pm
Msg #310016

I'm not responsible for explaining the docs or the terms of the loan to the borrower (same for a loan signing). All I really was asked to do is make sure all the forms are signed and that nothing is missed.

Reply by Linda_H/FL on 11/5/09 6:46pm
Msg #310027

Point is many states have enacted, or are enacting, legislation where ANYONE involved in the loan application process must be a licensed mortgage broker or mortgage originator. Whether that legislation trickles down to notaries is yet to be decided in some states, but other states are clear about it...

Marilynn is telling you to be sure you can still do this in CA without an originator's or broker's license.

Reply by GA/Atty on 11/5/09 6:22pm
Msg #310024

$200 n/m

Reply by Scriba/NM on 11/5/09 6:48pm
Msg #310028

I have been involved in the Reverse Mortgage market for the last four years and have recently been asked to have prospective clients complete the initial disclosure packages. There are a couple of ways companies are accomplishing this task, where the actual representative is not in the area of the client. The first is the call from the signing company - they want you to print out two copies of the documents (one to sign and one for the borrower) and you are to collect some documents. If these docs are not ready, you tell the borrower to fax them in to a specific number. This method is the same as a regular loan to me and the fee is the same, even though there is no notarizing. I can usually do these in one hour. You charge a flat fee, and it must be implicit that you are to be paid, whether or not it funds. With the new regs lowering the amount that can be loaned, this can happen.

The other method is where you take the application, fax back the app documents (or scan and email them), wait, get the assignment if it is approved, and then you are assigned the task of receiving and printing the completed Reverse Mortgage, getting it signed, and then being paid directly off the HUD-1 at funding, whatever fee you negotiate for both functions - $250 - $400.

I personally am not a fan of Reverse Mortgage apps, but I do use them as fill in, but you must always make it very clear that you are to get paid, whether it funds or not (as long as you got everything signed and didn't flub up the package).

Reply by Jim/AL on 11/6/09 12:35am
Msg #310061

Check the package page by page. n/m

Reply by Jim/AL on 11/6/09 12:45am
Msg #310062

20-40 mins max, the difference starts with confirmation

I usually charge a bit less than a loan signing because they are usually 20-40 mins. max., you just need to make sure BO know up front MUST have copies ready when I arrive, not lets watch you make copies and try to find the items when I get there.

Check the package page by page. Many times approx 80 pages are really only 30-40 pages of HECM RESPA docs to be signed and 40-50 sample docs and instructions, question and answer sheets etc.. and they are only printed for the borrower. They usually sign about 20 times only.

The samples look like loan docs but the names will say something like Joe Borrower and Jane Borrower, 123 Main Street, anytown, USA. They usually include copies of Mortgage, Note, TIL etc...

Reply by TRG_wy on 11/6/09 8:20am
Msg #310075

Re: 20-40 mins max,- WOW - you have been lucky

I have completed well over 100 of the packages and never have I been in and out in under an hour to two hours. Even when they did have copies ready.

I have found that many older people are not as ready to jump into something as complex as a RM. This is the first time they are seeing actual documents. They tend to read, re-read and read some more - every word. More often than not they want to talk to their rep for further explanations.

I charge at least my standard for a regular signing. My 'time' is valuabl;e and not free.