Posted by Calnotary on 11/2/12 5:40pm
Msg #441923

What's wrong with CHASE loans????

Borrower was told no cost refi, I got there and there is 3K settlement charges. I tried to explain to them that maybe it was no out of pocket refi. And that's not all. Why do they blame the notary?

IF a deal does not go thru they stop sending me orders! What's up with that I did not dropped the ball on this loan.


30 minutes using my cell minutes arguing with the LO and the LO can't really explain why the HUD-1 shows those numbers, arghhh.

Reply by Karla/WA on 11/2/12 5:45pm
Msg #441924

All you can do is conclude the signing without the borrowers signing. It's ok.....ultimately they know it's not your fault.

You'll get paid.

Every so often this happens. Just direct the borrowers to their LO and they can redraw based on their understanding, or rework the loan.

Reply by Lee/AR on 11/2/12 5:48pm
Msg #441925

Sure hope some LOs or Chase people are reading this forum

because that IS a chronic complaint of absolutely every Chase borrower I've 'signed'. When they call their LO, it's a rare one that can explain why 'no cost' is costing. However, it also seems to be working for Chase because, despite the complaints and lack of good explanation, most still sign 'because it's a good rate and/or a lower payment'.

Reply by ME/NJ on 11/2/12 5:50pm
Msg #441926

Depending on type of loan there are cost. Title Insurance, Recording Fee's, pre paid interest and Escrow account set up and Escrow for taxes. These fees will be on most loans. You may see a credit for LO fee and time you may even see credit for TC fees.

When it comes to CHASE and customers it is best to call Customer Service and let them explain it to the borrowers and let them make the choice to sign or not.

Not our area to get into it.

Reply by Calnotary on 11/2/12 5:57pm
Msg #441930

What it's not fair is when they took 30 minutes in my phone and 10 or more on theirs to try to sell the loan while the notary still there.

Reply by Pro Mobile Notary on 11/2/12 6:54pm
Msg #441934

Chase is not hiring the "sharpest pencils in the box."

The problem is the LOs do not sufficiently explain what they are doing to the borrowers.

Sometimes they tell the borrower it is a "no cost loan" without explaining that accrued interest on on the old loan being retired and the prepaid interest on the new loan to the end of the month are not non-recurring closing costs, which leads to one of two problems.

1. The borrower sees no cash due to them, but were not told the closing costs were being handled via adding those costs to the loan balance. This is the problem we most often run into.

2. The borrower is never told that the lender can only cover "non recurring closing costs" out of the net proceeds, so they have a balance due to close, which is what this scenario likely is.

If you ever get caught in a situation like this try to tell them if they were able to get in touch with their LO, he would most likely tell you they can cover all closing costs for the loan except the recurring costs, which includes insurance premiums and interest on the loans (old and new). As an offset you can sometimes pacify them by telling them they have a one month payment holiday (usually) and that offsets the out of pocket payment. When you close a loan prior to the end of the month you are required to pay the interest on the new loan to the end of the month it is closing in. Rent is paid in advance and mortgage loans are paid in arrears. If you close a loan on 10/30, the first payment usually is not until December 1.

In CA we have passed 11/1, which means that the first installment of property taxes will be required to be paid as a function of closing even though the final day to get in your property tax payment is not considered late until 12/10, but the real due date is November 1.

Good luck with signing those lousy LO docs.

Reply by ToniK on 11/2/12 6:59pm
Msg #441935

I had one on Halloween. He was furious there were fees. I packed up and left soon as he said he wasn't signing. I couldn't get in touch with hiring entity to inform. Notified them on online completion report. Today we resigned same docs. He said he misunderstood his documents.

Reply by CJ on 11/2/12 7:22pm
Msg #441946

One Chase loan that I saw, it did have a lot of credits on page one of the hud to defer the costs of the loan, but the credit was his escrow balence from his old loan. There was a "0" at the bottom, but he said, "They are using MY money to make this a 'no cost' loan. It's costing me $3,000".

Reply by Art_PA on 11/2/12 7:21pm
Msg #441945

Hint: use the borrower's phone!!! Never use your phone when calling title or the lender in a borrower's house. Your phone is your cash register.

Reply by Linda Juenger on 11/2/12 8:20pm
Msg #441954

Art is correct. Use the borrowers phone for calls to their

LO. If "I" need to call Title, then I use my phone. I don't mind that.

Reply by CopperheadVA on 11/2/12 8:41pm
Msg #441958

There is *usually* a credit on page 1 of the HUD, that covers everything except the new escrow account and the pre-paid interest for current month.

Reply by Claudine Osborne on 11/2/12 10:05pm
Msg #441964

This happened to my BO tonight..he saw the 895.00 settlement charges and said what is this for? Loan was supposed to be No cost..He asked me about the RTC and signed away..

Reply by desktopfull on 11/2/12 11:20pm
Msg #441967

You are correct, they credit back on pg 1, except for escrow n/m

Reply by MistarellaFL on 11/2/12 11:59pm
Msg #441969

This reminds me of the Countrywide loans of 2005

LOs (or AEs, per CW) would fail to mention to brws that "no-cost" excluded title insurance, current interest, impounds...just meant no formal closing costs to brws, meaning, I guess, no fees to title or appraisal.
I hated being and left out in the cold to explain that.
I guess we now know where those former CW AEs are working now...Chase.
TG I haven't had any.
I remember a lot of hating CW work in 2005, but then again I did make a lot of money.

Reply by Barb25 on 11/3/12 9:34am
Msg #441978

If we are talking about primarly SUPERHARPS with CHASE

and no closing costs they are very difficult to explain for the most part to the borrower ESPECIALLY if there is an escrow account that they have used to paydown the old loan and taking the money from the new loan to replace it. OMG.

But if the LO has don their job, it would not happen like this. But where is the LO. Darned if I know. Chase falling short. I use the word Chase broadbrush to be sure. Because I don't think it to blame the notary, it is just to divert the blame from them to who is ever available. Somebody is not doing their job and it certainly is not "us." I have gotten pretty good at the explanation. I have done it often enough. But many hours, and drawing pictures... like you would a 3rd grader. But that is not to diss the borrower, the concept is confusing.

Anyhow one would think sooner or later Chase will have to realize that the problem is an internal one.. But I am beginning to wonder. I had a "defend" myself the other day and am not sure I am willing to do that much longer.

Reply by Luckydog on 11/3/12 10:53am
Msg #441995

Re: If we are talking about primarly SUPERHARPS with CHASE

To be fair, it's not just Chase doing this. You have to explain to the buyers about a new title policy, new escrow for taxes and insurance. Somethings with a new loan are always there. Just wish they would tell the buyers upfront that the only fee's that are negotiable are their origination charges, sometimes the appraisal, and the title policy if not too old. Will always be some cost, but try and convince them the lower interest rate/ possible shorter loan will save them money and is worth it. Also, a selling feature is skipping the following month's payment.

Reply by Barb25 on 11/3/12 11:35am
Msg #441999

But Chase truly is picking up all fees in FL at least except

for escrows and prepaid interest due from borrower. It is charged as part of Settlement. And then shown as a credit. It gets confusing when Any money that was in Escrow was applied to loan being paid off. Now it looks like new loan is higher and there is a Settlement cost to the borrower. Again, I speak about the loans I have done here in FL for Chase. No cost Superharps. Very clean when borrowers have been paying own taxes and insurance. That is all I am saying.

Most people aren't concerned with the "couple of hundred dollars" with "skipping a payment" as you are calliing it. IME.

Again, this is what "I" have been seeing. I literally draw pictures which I cannot do here of course.
Just another point of view. Certainly not looking to debate.

Reply by Gerry Grummons on 11/4/12 10:25am
Msg #442111

Usually this is spelled out to the BO in a cover letter in Package. Also up to the LO the explain process. Had one few weeks ago and the BO had to write a check for $10.00 and he blew a fuse in spite of the cover letter explaining possible fees. BO took it that "No cost to Refi" meant "No cost". When he couldn't get in touch with the LO he then signed knowing that he had the RTC. Never know what you will run into!