Posted by jojo_MN on 9/28/09 12:00pm
Msg #305419

New laws for RESPA and appraisals. How are you handling??

Last week I received all of the RESPA docs dated 8/18/09. The instructions said to mark them RESPA docs and keep separate from the rest of documents. The borrowers were furious. They said they never receive ONE document to sign before the closing. They did sign them because they were going to save over $200 per month. There were no notarized documents, so I just had them sign.

It puts us at a disadvantage because we know the laws changed. (copied from a different thread).

I've also had the appraisal waiver sheet for the borrowers to sign stating that they are waiving their right to receive the appraisal at least three days before the closing. There is a reason for the law, but the companies think they can get around it by using the waiver.

I don't want to be in the position of being notary police, but do we have any liability as being an accomplice?

Reply by PAW on 9/28/09 12:11pm
Msg #305422

Considering it has nothing to do with notaries, you have no notary liability. However, as a signing agent, I still think there is no liability until such time a decision is made as to what constitutes the "3 days prior to closing." Technically, imo, the signing date qualifies as being 3 days prior to closing, since most definitions of a closing means that funds are disbursed. So, a refi with a 3-day RTC would allow the HUD and other disclosures to be provided at the signing table, and still be within the language of the Act. Therefore, I don't see any change in the way we work until the language is significantly clarified.

Reply by Linda_H/FL on 9/28/09 12:12pm
Msg #305423

"The borrowers were furious. They said they never receive ONE document to sign before the closing. They did sign them because they were going to save over $200 per month"

"It puts us at a disadvantage because we know the laws changed"

IMO borrowers made their own decision - which is as it should be - it's not our job to make sure they have advance notice OR that they've received their disclosures in compliance with the new regulations - no disadvantage here at all - we may know the laws changed but it's still NOT our responsibility to police all those in the chain who came before us. IMO your borrowers may have waived any right to gripe by signing anyway..but that's their decision, not ours. If you decide to tell people the process has not been followed you're not only commiting UPL, IMHO, but occupational suicide.

We identify, make sure docs are signed properly, and notarize in accordance with our state laws - not Quality Control or police everyone else and the loan process. The borrowers have to have SOME accountability here.

JMHO

Reply by jojo_MN on 9/28/09 12:17pm
Msg #305424

That is my feeling also. I think that couple that was suing the lender, mtg broker and all others involved in their mortgage process that wanted me to be their "notary acceptor" is making me a little paranoid. Just need to "shake it off" and go forward. Thanks for your input.

Reply by MW/VA on 9/28/09 1:50pm
Msg #305438

We're not the mortgage police. If I have knowledge of the new requirements, that is for my information only. I'm still seeing broker docs in the package, and am not about to investigate or start checking application dates. I'm seeing the Appraisal disclosure & often a waiver. I'm sure that the requirement is there for a reason, but I personally don't see what bearing it has on a refi. Either way, I'm not about to engage in UPL by getting into it, because I'm not licensed as a mortgage originator. IMO it is the lender who carries all the responsibility for compliance to the new requirements.

Reply by SharonMN on 9/28/09 2:50pm
Msg #305456

I agree - none of our business. If the borrowers are unhappy with any document for any reason, I refer them to their LO for questions and remind them of my role and that it is always their choice whether or not to sign.