Posted by Marv/CA on 11/27/10 4:23pm
Msg #362882
Loan Officers laxness
Why don't loan officers explain the notary's role to the borrowers, so we don't have to? Often borrowers think some one from the bank is coming.
| Reply by JanetK_CA on 11/27/10 4:41pm
Msg #362884
Yes, that would be nice, but I'd be pretty happy if that was the worst we had to deal with regarding laxness from LO's!
I'd be thrilled if they would make sure the borrowers had received a copy of their HUD - or at least knew if they would be needing to provide a certified check; if they'd already sent the BOs a copy of their appraisal; if the LO had checked that the BOs have unexpired ID that supports how they are vested on the DOT/Mortgage (OK, I know I'm reaching for the stars here); if they didn't tell the BOs that the signing would only take a few minutes when the package was going to be more than 100 pages...
Well, I could go on and I'm sure others could add a lot to this list.
I should probably add, however, that there are many out there who do a fine job. This past week I actually had one LO show up for a signing just to be there in case the borrowers had any questions or issues for him. He didn't try to run the signing - didn't even interrupt until we had already gone over the key documents. Then it was only to state that he was leaving since everything seemed to be in order. What a gem! I wish there were lots more like him!
| Reply by Blueink_TN on 11/27/10 7:11pm
Msg #362887
Just so you'all know - sometimes there are weeks between the time the L.O.'s speak with the borrowers and the closing. The title co/ lenders expect you, as signing agents, to know your job - the paperwork tells it all - point it out and if they have any questions, call their L.O.
| Reply by Teresa/FL on 11/27/10 7:45pm
Msg #362890
It's a bit late to point out issues at the closing when the LO could have, actually should have, noticed discrepancies and questioned them at the time the application was taken or the initial title search was done.
I had a refinance closing recently where the borrower's first name was spelled differently on her ID than on the documents. The correct spelling was the one on the ID, but the borrower had been using an alternate spelling for years. She had even taken title to her property using the alternate spelling.
And shouldn't the LO be in contact with the borrower shortly before closing to confirm the final figures and loan terms?
| Reply by Blueink_TN on 11/27/10 8:27pm
Msg #362892
Yes, the LO should always schedule the closing and email the HUD beforehand, in a perfect world. The name game is always an issue - something that cannot always be forseen.
| Reply by Carol Graff on 11/27/10 9:42pm
Msg #362895
I have had so many problems this last month with loan officers not doing their job. It has made our jobs so much more difficult. Yes, in a perfect world, borrower's would have a copy of HUD before we get there and know if any money is due. I had one borrower who actually thought he could just sign his first name as that is what he did on his DL! Another time there was a blind signer and Title Co. was not even aware of it. I know there are many good ones too, but I dont' seem to be getting any of their loans! Follow-up is all we ask.
| Reply by Ali/IL on 11/27/10 9:48pm
Msg #362896
I have been told that calls are returned.
Also, lo's that tell the borrowers that if they have any questions that I will explain things to them.
| Reply by redd on 11/28/10 7:41am
Msg #362904
Borrowers complain
I have to say that there are times the borrowers brag about the efficiency of their LO but even more times I get an earful of the inefficiency of the LO. And borrowers have felt the need to give me a play by play story of their experience. I have learned to just let them vent. They can sometimes be so troubled that they MUST VENT. Some have shared that LO's say to ask the notary to explain "things" or to ask the Notary when they will get their proceeds. I just take a deep breath and explain my "job" and what I can explain and what I can't explain. They are usually very understanding.
I will say I do my best not to DOG the LO to the borrowers. However, I am also told more often than I should be that the LO blames me for the rescheduling of closings or things not being "right". Other times, I can tell the LO gave the borrowers a heads up about my function and I really appreciate that! It's just the nature of the beast and part of the job. I really don't allow it to be the end of the world! ha!
| Reply by HisHughness on 11/28/10 12:13pm
Msg #362918
***I have had so many problems this last month with loan officers not doing their job ... Yes, in a perfect world, borrower's would have a copy of HUD before we get there***
As a loan officer, I had no idea of the status of a loan once I had submitted the application. I could find out, but I wasn't in the loop as to the when the HUD would go out, etc. There are many intricacies of the loan preparation process that simply are not part of the LO's role.
The major problem -- mitigated somewhat nowadays, but still occasionally encountered -- that I run across with loan officers is that they misrepresent matters just to sell a loan.
I recall one young veteran who had bought his house six months earlier. An unscrupulous loan officer had conned him into a refinance by dangling a half-point reduction in his interest rate in front of him. Then he had loaded down the loan with all sorts of fees. The kid was going to save almost zilch on his monthly payment, and it was going to take him 13 1/2 years to amortize the fees.
THAT'S the problem I have with loan officers.
| Reply by MW/VA on 11/28/10 10:57am
Msg #362916
The LO's don't have as much control over the process as you
think they do. Once the loan goes to the tc, it's up to them to know when docs will be ready (still need final HUD approval from the lender).
IMO the LO's don't explain the role of the NSA because many of them don't understand it.
If you explain to the borrowers that you are required by law to be an impartial 3rd party, don't represent the lender or borrower, most of them don't have an issue with it. I haven't encountered many borrowers that will "shoot the messenger".
| Reply by aries/CA on 11/28/10 2:05pm
Msg #362935
Re: The LO's don't have as much control over the process as you
Dont' get me started on lo's. I've had so many issues with borrowers not knowing they were coming in with money. So, the first thing before signing anything, I show them the HUD and what they need to come in with. The look on their faces tells me that the lo or escrow didn't tell them how much they were coming in or that they suppose to come in with money. I have them call the lo, so they can explain why they are coming in with money, when all along the lo told them, they were not coming in with anything. I've had some not wanting to sign and after printing over 100 pages it really pisses me off. If its a refi, I tell them is up to them, they have 3 days to cancel or I can leave taking all the documents including the copies with me. I am sorry but that's not our job, and I feel more and more the lo's and escrow want us to do more work for less. While they get their 2 or 3 points for the loan.
| Reply by Linda_H/FL on 11/28/10 4:29pm
Msg #362954
I like the ones who tell the borrowers
when confronted with "you said we don't have to pay anything" - they answer with:
"Well, technically you don't. You have to pay $XXX now, but you're skipping one month's mortgage payment because your payments don't start til <date> and you're getting your escrows back from your old mortgage, so technically you're NOT paying anything"
And the borrowers buy it...ugh
| Reply by MW/VA on 11/29/10 8:52am
Msg #363004
Re: I like the ones who tell the borrowers
That one get's me, too. I'm sure it's their fees that they want to get in cash. I've caught a couple of streamline refi's where funds were due from borrowers. Streamline refi's are not out of pocket costs.
I don't know how they think they can get away with this stuff!
| Reply by ReneeK_MI on 11/28/10 2:29pm
Msg #362940
L/O's are sales people, not 'production line' ...
Honestly can't remember the last time I or a borrower had a need to call the L/O ...and that's a good thing. =) About the only thing I suggest contacting them for is their own fees (when borrower disputes them) or any part of the terms (loan amt, interest rate, maturity).
| Reply by ikando on 11/28/10 2:53pm
Msg #362947
Re: L/O's are sales people, not 'production line' ...
The building where my office is located was the home for a regional "mortgage" company. The "loan officers" were generally people who came in to work the phones trying to get someone to take a loan. A few times there were people who had a clue what all was involved, but for the most part, they were only there to collect a commission. That business is no longer in existence.
Having said all that, I know that there are many hardworking LOs who truly want to help people save money on their most expensive possession. However, knowing that the former group exists, and having had conversations with some from other lending businesses, I often shake my head in disbelief.
| Reply by SReis on 11/28/10 7:52pm
Msg #362980
I'd be happy if they all at least went over the terms w/borr n/m
| Reply by jnew on 11/29/10 10:00am
Msg #363010
Re: I'd be happy if they all at least went over the terms w/borr
In the words of General Buck Turgidson, "we should withhold judgment until all the facts are in" but loan officers do indeed lie. The relationship between a borrower and an l/o is always a bit tenuous. I normally ascribe to the tenet that the less said by me, the better. I never know what has been already said by either and do not wish to involve myself in the relationship.
| Reply by HrdwrkrVA on 11/29/10 11:47am
Msg #363028
By law, BOs r supposed to have the FINAL HUD 24 hrs prior to
closing. In 2006 or 2007, LOs would quote mthly pymt w/o adding in escrow. When I'd get to BO's for signing, there be a $300 add'l amount, whiich would onlty save the BO's $20 - 30!! IMO - that's a CROOK!!
Some LO's r thorough w/ BO's knowing mthly pymt, cert. ck amt, etc. In 90-95% of loans, most know NOTHING! Sad - SMH!
| Reply by ReneeK_MI on 11/29/10 2:17pm
Msg #363045
This is not true ("by law...final HUD 24 hrs prior...)
RESPA Section 2603, paragraph b:
" The form prescribed under this section shall be completed and
made available for inspection by the borrower at or before settlement by
the person conducting the settlement, except that (1) the Secretary may exempt from the requirements of this section settlements occurring in localities where the final settlement statement is not customarily
provided at or before the date of settlement, or settlements where such
requirements are impractical and (2) the borrower may, in accordance
with regulations of the Secretary, waive his right to have the form made
available at such time. Upon the request of the borrower to inspect the
form prescribed under this section during the business day immediately
preceding the day of settlement, the person who will conduct the
settlement shall permit the borrower to inspect those items which are
known to such person during such preceding day."
| Reply by Jodith Allen on 11/29/10 5:04pm
Msg #363084
I had one a few weeks ago that told the borrower that I would go over the HUD-1 with them line by line. I let the borrower know that I was not certified to be able to do that. I know in general what the HUD 1 is and can give general information, but any specifics must come from the loan officer. *laughs* It was almost 10:00 at night. We pulled the LO out of bed to go over the info on the HUD-1.
| Reply by ReneeK_MI on 11/30/10 6:19am
Msg #363136
I disagree, Jodith ...
If an NSA advertises themselves as such, and doesn't limit their areas of expertise to being only a notary, then I am of the strong opinion that a line-by-line delivery of the Hud IS their duty.
While we can not ever explain WHY any *fee* is any particular dollar amount, we can & should explain WHAT each item is. We can and should also explain - when questioned - how certain amounts are arrived at (such as the Interest Adjustment, escrow set-ups, up-front taxes, pro-rated taxes, pay-offs, etc). No buyer or borrower should ever be expected to sign a Hud w/out it having been properly delivered. Historically, traditionally & logistically - this has been the realm of the "closer", into which NSA's step. This is why the loan officer assumed you would be able to perform this duty.
As the L/O you hauled out of bed holds the key to you being called again by that title agent, I'd be very surprised if you do.
| Reply by BrendaTx on 11/30/10 9:26am
Msg #363163
Re: I disagree, Jodith ...
Line by line discussion of the HUD...that's a tough one...I start at line 1, read the caption, move over to the amount, point at it, say it, then go to line 2, and repeat until there are no more lines with amounts on them.
That's 95% of it.
You can "read" anything aloud and not be stepping out of bounds...it's when you start giving advice, or interpreting document language that you have a problem.
| Reply by ReneeK_MI on 11/30/10 11:43am
Msg #363198
for clarity, here's examples
The most common questions I hear and answer are:
1. "This was supposed to be 'no cost', why am I writing a check?" With a glance I can see if the funds due are equal to items that are not "costs", such as escrow set-up or an up-front payment of H/O or taxes. If that is indeed the case, I can point/show - your check amount is equal to your own tax bill, or just the escrows, whatever the case may be. Stops an unnecessary call to L.O.
2. "These taxes aren't due for 2 months, why am I paying them now? I want an escrow account." I have no qualms showing - 1st pymt will be at the same time taxes are due, in order to ensure they're paid on time - you pay them up-front. If this amount WERE added instead to the escrow set-up, it would not change how much the tax bill is or how much you're paying at settlement.
3. As above, but with H/O premium.
4. "This payoff amount is wrong, I looked on-line, I don't owe that much." I hear this A LOT - most of the time, I have their payoff letter and can show them, but no qualms telling them that those on-line balances do not include or calculate per diem interest. You have to pay interest every day you 'have' their money until the second they are holding a payoff check.
5. "I just paid my payment on the old loan, so the amount is too much." Another one I hear a LOT. I grab a sheet of paper and write a note, saying "We'll let the Settlement Agent know, and hopefully they'll be able to update the actual pay-off quote during your 3 days of rescission."
6. Tax pro-rations tend to confuse people, I explain how that works.
7. I always look at the HUD to see if there's credits - helps me to be armed/ready when they see fees they weren't expecting to see.
8. Now & again borrowers want to know why they pay "again" for a title policy - I explain the lender requires their own policy, and it's a cost to obtain the loan.
That's pretty much 95% of the questions I get most often. I don't go deeper in the line-by-line than I need to, I stick to the most basic delivery unless/until THEY raise a question.
| Reply by Jodith Allen on 11/30/10 6:20pm
Msg #363259
Re: I disagree, Jodith ...
This guy had all sorts of issues with the numbers. He wanted to know what this number is and how it was calculated and he didn't think it was right. The only thing I can tell them is, I can't answer those questions. I don't know why those numbers were included at that amount. I wasn't party to his negotiations, I don't know what numbers were included and why.
My most frequent question on the HUD is, "I was told there would be not fees charged. Why are there fees being charged?" I can usually show them where the fees are being paid by the lender. And, yes, I've answered questions about the interest and why it differs from their last statement. But some SS have strict rules not to discuss any terms on the HUD nor explain what any of the fees are even. This was one of those loans. I can point to where, but not discuss what or why. When I'm working for those services, I'm mostly a point and sign notary. Which is annoying because I do have a lot of knowledge about the paperwork, and could hurry some signings along by providing some very basic information to questions.
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