Posted by Aurora Johnson Benchmark Notary Services on 5/27/11 1:27pm
Msg #384528

Loan Application for Reverse Mortgage

I am new to the notary field, doing some investigation, study, research etc. I came across the term loan application for reverse mortgage and was wondering what this involved for a notary. What exactly does the notary do at such a signing? I understand that there is really no notary work per se as much as there is just the job of making sure all the needed documents id etc are returned to the lender as per their instructions. Can any of you with experience in doing a loan application for reverse mortgage give me some insight into this?
Thanks

Reply by MW/VA on 5/27/11 2:01pm
Msg #384533

You're right, there are no notarizations. It's about having someone physically to go over the app. with them & get it signed correctly. Some will say that it takes almost as long as an actual loan signing, and doesn't pay near as much. I've done a few & they aren't bad IMO. If you're new to the field, I wouldn't suggest you get involved with RM's until you have gained some experience. They require some extra patience, etc.

Reply by Ireneky on 5/27/11 2:16pm
Msg #384536

Got burned on one those. Loan didn't go thru=no pay at all n/m

Reply by HrdwrkrVA on 5/27/11 7:11pm
Msg #384557

You men they stiffed you for the print & trip fee? I always

respond to new clients that those fees must be pd (out-of-pocket expenses), and have them respond to my email that they agree to pay. Otherwise, I let them find another victim or someone else willing to throw their time & money away. Even if they stiff you, you have an amended contract & grounds to sue/ file complaint w/ BBB, etc & most of all, warn others about them on NotRot. Then they be like SOX (how DO they stay in business???), making hundreds of calls to fill one closing (or so we hope)!

Reply by nunu on 5/27/11 2:25pm
Msg #384539

I do an average of 3 to 5 reverse mortgages a week. The application process is first and requires no notarizations, the final close there are many notarizations. Most companies use the notary for both processes while others only use the notary for close. I enjoy these but you really have to alot an extra half hour for them and my fees are higher because of this. You must be very patient and understanding of the elderly or these will drive you crazy.

Reply by Aurora Johnson Benchmark Notary Services on 5/27/11 9:20pm
Msg #384568

Thanks for all your help and advice....

Reply by Michael Gilman on 5/28/11 1:17pm
Msg #384586

You need to be careful during the application process as just like with notarizing, if you are not an attorney or licensed loan originator you cannot give any advice. These types of signings generally do not have anything to notarize but you are responsible as an agent to get everything signed and filled out correctly. Common practice in the industry used to be that a notary as tasked with both the application and signing of the final loan. The reason in the beginning was because they needed a representative to meet the face to face requirement. Then as the rules changed and LO's needed to be licensed that all changed. Now most reverse applications are taken over the phone, lender sends an application and walks the client through the signing directly over the phone with them. Then after loan is processed and approved they use a notary for the final docs. You need to remember you are dealing usually with older folks min age for a reverse is 62, but most are older because at 62 they cannot get much equity out (they get more the older they are). The packs are usually close to 200+ pages so you will end up using close to an entire ream of paper for both the original and copy to leave sets. If you like working with older folks it is a great opportunity. One last thing, I have never heard at least for a reverse, non payment of the application process (I am a former director of operations for a reverse mortgage company). The application should always be paid in full one way or the other. You can and should negotiate your fees up front as there are no statutes relating to you as an agent (not notary) for the application phase. I typically get 175.00 for final signing in NY for a reverse and 135.00 for an application if I was promised both sides.

Reply by John E. Rogers on 5/28/11 5:32pm
Msg #384603

Good points; lenders for RM's seem to be getting the message today; most all RM's I have done already have apps completed...just a quick review (as quick as can be done with Seniors) usually is sufficient. Fees should be charged accordingly; in Ohio, I usually get at least $125.00. Seniors are great to work with but it is time-consuming...and rewarding.