Posted by bahama on 9/13/12 7:30am
Msg #434169

Doing Closings For Husband

The LO is letting his wife do his closings for him, is this unethical since she will gain from his job? Has anyone ever heard of a notary doing this before? I need your input ASAP told a friend I would check on this for her.
Thanks

Reply by bfnotary on 9/13/12 7:43am
Msg #434170

I don't see anything wrong with that. She is a notary right? She is qualified to do the job. I can tell you, I wish I had connections like that.

Reply by 101livescan on 9/13/12 7:53am
Msg #434171

She has no conflict of interest, as long as she does a great job, she'll have lots of work.

I've always said, GET CONNECTED with hot dawg LO for wildly successful business!

Reply by Donna McDaniel on 9/13/12 8:02am
Msg #434174

The only conflict he may have is with his employer. I know of one particular lender who would not allow it.

Reply by 101livescan on 9/13/12 8:40am
Msg #434177

Ah, Yes...nepotism. Most corporations have a strict rule about relatives working in the same divisions, departments, or even the same company, especially in lending and title/escrow.

HOWEVER, rules are bent all the time.

As long as she is competent and their charge is in line with the industry standard, clients probably won't care very much.

If I were a borrower, I would want to make sure I was paying "standard, acceptable" fees, and not paying more because the notary was the LO's spouse, or sister, aunt, daughter, etc.

Reply by bfnotary on 9/13/12 10:23am
Msg #434194

but most people who do signings are independant contractors. Therefore, it would not be a relative working for same company. Unless of course she is on payroll, then that is a different story.

Reply by Gregory/CA on 9/13/12 8:13am
Msg #434175

IMO, I think it would be a conflict of interest for personal gain. How much is he paying to the wife? Is it the same as any other signing agent that will be assigned for the same task or is he increasing the rate for this benefit and convenience? I agree with the earlier post about it possibly being an issue with the employer. I know my company has a specific policy on Conflicts of Interest. IDK, just my opinion and two cents.

Reply by Clem/CA on 9/13/12 9:36am
Msg #434191

LO's don't set the pay Title does. If she is an independent contractor and not an employee of the LO's firm then there is no employer conflict.

Reply by Patriot on 9/13/12 1:35pm
Msg #434239

Here is my 2 cents: I am an escrow officer and technically speaking title/escrow sets the fees BUT the lender really sets the fees. It goes back to the good faith estimate. Title/escrow can only work with what they are given. If I received a GFE, my HUD must reflect the fees, title/escrow must work with that or they would lose the business. Regardless, I could care less who is the notary as long as the job is done correctly and ethically. There is nothing ethically wrong with the wife being the notary. It is only ethically wrong if the LOs company forbids it and they do it anyway.

Reply by SharonMN on 9/14/12 9:57am
Msg #434374

I don't think the issue is the fee she gets paid for acting as the signing agent. I would decline due to conflict because I (as the wife) would benefit from the commission hubby would receive if the loan closes. Therefore (assuming my hubby and I share money), I am financially interested in the outcome and may have incentive to pressure the bwr to sign.

Reply by bahama on 9/15/12 12:20am
Msg #434472

Thanks for your opinions I will pass them on to my friend. You guys are the best.