Posted by Art_PA on 9/27/09 3:51pm
Msg #305282

Excessive Time at Closing

A refi does not take over 2 hours. It should not take more than 45 minutes in most circumstances. It appears from some recent posts that a few notaries are getting trapped by the borrowers. The best advice given by experienced closers when borrowers are intent on reading everything, is to remind them of the RTC, and then politely begin to pack up to go to your next appointment (whether you have one or not).

When they want to call the LO, after the first call I suggest making a pile of the docs they have questions about so they can resolve issues in 1 call. When they keep calling the LO, you take the phone & tell the LO you have to leave to go to another appointment and cannot return.

In my experience these simple tactics move the closing along, so long as you are polite and do not display your frustration.

This has nothing to do with whether a borrrower is a lawyer, an engineer, or a teacher. Some people are naturally suspicious, and this is understandable in view of all the deceptive practices engaged in by the lending industry. You know this very well unless you just arrived from Saturn.

Reply by ChristineHI on 9/27/09 4:10pm
Msg #305285

I agree. My signings rarely take more than 30 minutes. The borrower typically is concerned with their payment and fees. Other than that most of the docs are generic. I give brief descriptions of every document but there is no need to go into great detail. I also come prepared. My docs are stacked in an order that makes sense and I put x's next to the signature lines so they are easily seen.
I remind them that they have a copy if everything to review as well and that their agent can answer any questions they have.
Even my one signing where the borrower insisted on reading every single page, including the mortgage, it took just an hour.
Borrowers don't want to sit there for hours either. Most have better things to be doing and just want to get it done and move on with their day. I have had a lot of borrowers thank me for not taking up so much of their time and how easy I made it for them.
I also tell the borrowers when I confirm the appointment that typically it takes about a half hour and that seems to help too. They have a time in their head then and they tend to like that. I can also get a feel then for possible difficult borrowers if they say they think that may not be enough time. Sometimes if the lender allows I will forward the docs ahead of time via email so they can see before I print. This has helped me many times when I suspect those very suspicious or cautious borrowers. That way they can get their questions answered before I even print docs.
Being prepared and predicting ahead of time I think has helped me. There is no way I would be there for 2 hours. I would leave and possibly return later of necessary before I would do that.

Reply by snoopdogMs on 9/27/09 4:21pm
Msg #305286

My opinion- lender or title can e-mail docs in advance

to the borrower. Not me!

Reply by ChristineHI on 9/27/09 4:31pm
Msg #305288

Re: My opinion- lender or title can e-mail docs in advance

For me it is about time management. If I can send them myself it is faster than waiting for them to do it. I also want to make sure the borrower communicates directly with me that they are ready to go. I have had loan agents say the borrower is fine and has no questions but it turns out not to be true. I want to hear it directly from them. Occasionally the lender wants to do it themselves but usually they appreciate that I will do it. It is just more efficient to me. The borrower can also ask me questions directly if they cannot reach their lender. I cannot advice but I can explain what something is.
The little bit of extra time I give at home has saved me lots of time at the signing table.
I would rather do a little bit extra in the comfort of my home than while sitting there at the signing table.
This is just my way of doing it. It works for me but may not for everyone of course. :-)

Reply by Ruby on 9/27/09 5:38pm
Msg #305297

If I see that the borrower is a reader and I have exhausted all my avenues.
If they still insist on reading every last word.
I look at them and say take all the time you need, I only charge $100.00 a hr.
The signing then will move along swifty.

Reply by jba/fl on 9/27/09 7:48pm
Msg #305319

Greatly funny! Love it. n/m

Reply by LKT/CA on 9/28/09 1:57am
Msg #305346

I'll use either humor or psychology depending on the situation - which in the case of "readers", I use psychology.

When I see borrowers are readers, I compliment them for their due diligence. "Mr/Mrs Borrower, I applaud you for taking the time to read through your documents. Ya know, if more people actually took the time to read their paperwork like you, maybe we would not have had the subprime mess that we had - that's a very wise thing you're doing, I'm very impressed.....[pause]....I must leave for an appointment at XX:XX - would it work out better for you to sign the paperwork and you can finish reading through everything during your 3 day RTC or shall we reschedule for another time? What works better for you? Chances are they've already waited months to get this thing over with and just want to be done with it.

(1) Complimenting them about reading docs by using buzz words like RIGHT, WISE, IMPRESSED will stop any anger or offence to #2
(2) Announce you MUST leave at XX:XX for another appointment so it's clear there's no option for you to stay while they read.
(3) Give them choices (i.e. sign now or reschedule) so they "appear" to be in control and it seems they're the ones making the decision if they sign.
(4) If they demand to keep the copies to read (if they reschedule for later, which I strongly doubt), tell them you cannot leave the docs and must take them and secure them (use the word SECURE) ****IT'S FOR THEIR PROTECTION***** say: if even one sheet is accidentally missing, the package isn't fully executed and they risk the loan not closing and funding (which could jeopardize a rate lock) and the whole thing can be subject to a re-sign.
(5) Always inform readers that going forward, they can request a copy to review themselves or with their counsel before the Notary arrives - that way if they have questions or concerns, it's worked out to their satisfaction ahead of time.

Did half or all of what I said sound like baloney and or mumbo jumbo? Probably, but if it works and they sign docs now - WHO CARES! Psychology can be mumbo jumbo. Notice how companies didn't raise actual prices of good, but effectively raised prices by lowering the quantity? You get a few less diapers in the pack, a few less paper cups in the pack....the ice cream went from 1.75 gallons to 1.5 gallons. Wonder why something is priced at $19.99 instead of $20.00?

It's all psychological.....just come up with your own way to use psychological buzz words or humor to accomplish YOUR goal (i.e. get them to sign).

Reply by jba/fl on 9/28/09 8:42am
Msg #305357

Excellent points Lisa! n/m

Reply by Seeker/GA on 9/28/09 9:36am
Msg #305373

Re: Excellent points Lisa!

I totally agree that 45 minutes to 1 hour is the target time frame. However, I have found that there are two circumstances where the closings will take longer. First, if the borrower and loan officer have not had good communication or there has been a conflict, disagreement, or some issue between the two that has caused the borrower to not trust the LO. Second, newer and part-time notaries will take longer b/c they are less familiar with the documents and need to take more care not to miss anything. Even experienced notaries may require a little more time if the documents come from a lender/title company that the notary has not previously worked with.

I totally agree with Lisa's wonderful advice. I would like to add that it helps to set expectations before the closing. When I call a borrower to confirm the date and time, I make sure they know how much time the closing should take and what type of questions I cannot answer. I also remind them at the start of the closing.

Reply by jojo_MN on 9/28/09 9:51am
Msg #305379

I know I might slammed for saying this, but one thing we all have to remember is the borrower is the one paying our fee, even though they're not the one writing the check. We need to give them the courtesy they deserve.

I always schedule a minimum of one hour for each closing. Some only take 30 minutes, some migiht take 90. If it is a day that you have 5+ closings, you might want to mention when you get there that your next is at ?:00 in whatever city. I then go thru the critiacal docs (HUD, Note, TIL and RTC) and remind them that they have the three day waiting period if they have any questions, they should get their answers before that time. It tends to go a lot smoother, because if there are any questions, it is usually with those first four documents. IMHO

Reply by jojo_MN on 9/28/09 9:53am
Msg #305380

I know I might slammed for saying this, but one thing we all have to remember is the borrower is the one paying our fee, even though they're not the one writing the check. We need to give them the courtesy they deserve.

I always schedule a minimum of one hour for each closing. Some only take 30 minutes, some migiht take 90. If it is a day that you have 5+ closings, you might want to mention when you get there that your next is at ?:00 in whatever city. I then go thru the critiacal docs (HUD, Note, TIL and RTC) and remind them that they have the three day waiting period if they have any questions, they should get their answers before that time. It tends to go a lot smoother, because if there are any questions, it is usually with those first four documents. IMHO

Reply by jojo_MN on 9/28/09 10:00am
Msg #305384

Oops --might and critical.

Copied and pasted it into a word doc for spell check. Must have pushed "send" the first time by accident, then it didn't recopy before pasting in new post after running spellcheck. Sorry for double post.

Reply by CopperheadVA on 9/28/09 11:22am
Msg #305410

Re: Oops --might and critical.

I use iespell - found out about it here on NotRot, I think from Sylvia. You can spell check your posts directly on the webpage using iespell.

http://www.iespell.com/

Reply by jojo_MN on 9/28/09 12:11pm
Msg #305421

Re: Oops --might and critical.

I just downloaded it. It will save me lots of time and hopefully will avoid what happened earlier. Thanks. Have a great day!