Posted by CalGal on 9/1/12 5:27pm
Msg #432772

Reader Borrowers

Just curious...how many Signing Agents out there get a borrower that reads every document with a RTC in package?

Reply by MW/VA on 9/1/12 6:12pm
Msg #432782

I don't allow that to happen unless it's a situation where

there's no RTC. Part of my script is to say, especially when we get to the DOT, "you're more than welcome to read this word-for-word during your 3 day RTC period". Otherwise, I don't allow the borrowers to control the signing. Not saying that my way is the right way, but it works for me. I would never rush the borrowers if they had true concerns. What I've found, particularly since lending has tightened up on disclosures, etc., the borrowers are very well-informed by the time we get to the signing.

Reply by 101livescan on 9/2/12 10:23am
Msg #432835

Re: I don't allow that to happen unless it's a situation where

AND, if you first pull out the note, the TIL and settlement statement, explain that most of the documents in the package are lenders disclosures, affidavits that they live in the property as their primary residence, haven't committed in fraud in order to obtain their loan, no additional debt has been incurred, they agree in the E&O and Compliance agreements/POA to allow the bank to make simple typographical errors and to provide any additional documentation the lender might need post closing, yadayada, it should move along pretty quickly.

Yep, those darned first time borrowers are a PITA, given how WS and lenders have conducted their businesses lately, no wonder no one trusts them.

Thank GOD for the three day RTC, folks, but first time buyers don't get three days and nights to read these little puppies before the loan closes. However, if they are to wire $$ to close and have time to read or lose the deal by not performing, they lose their appraisal fee, perhaps the lenders application fee and any good faith purchase deposit they have in the transaction when they made the offer! Of well, gotta take a leap of faith.

The desire to own one's own home is pretty powerful these days, so most people will sign with the correct proddiing by a competent notary who has the power of persuasion and does have control of the signing event at the table.

Reply by HisHughness on 9/1/12 6:38pm
Msg #432785

I of course tell them what every other veteran signing agent says: I have other appointments, I have allotted X time to this appointment, and when that time expires, I leave. I also tell them that they are probably doing themselves a disservice if they attempt to absorb the ramifications of many of the documents in the course of a 1 1/2 hour closing because, by the very nature of the document, they won't be able to. The best way to do it, I tell them, is to be sure they understand the purpose of the document, then, when they have more time to devote to it. study it and ponder any reservations or questions they might have.

Readers are almost always first-time borrowers, so some understanding and diplomacy is needed. What is not needed is abject submission to THEIR agenda.

Reply by Lee/AR on 9/2/12 6:21am
Msg #432812

Really good advice, HisHughness n/m

Reply by NVLSlady/VA on 9/2/12 12:21pm
Msg #432843

Shed some LIGHT on the Subject (sorry couldn't resist)

Yes, it seems that when I understand the purpose or reason for the document, I have more confidence presenting (and convincing) borrower to sign and move along to next.

That said, I caused myself (and my borrowers) a lot of grief recently when I honestly didn't know what a particular document was for: Borrower/contractor agreement about improvements . . . It was very difficult to read and really looked like a document for new construction. When my uncertainty came through it was hard to justify just having them "sign it anyway."

I learned that GOOD LIGHTING also helps, because when I left I could see a little better (the page was still overcrowded with text) and it had an area for borrower to check if the property was already existing; so the affidavit was confirming no new additions, improvements, etc.

A lot of homes don't have proper lighting (remember when houses had ceiling lights?) and I find this to be a problem on more than a few closings. Borrowers may not want to turn on more lights to hide surroundings from you; but then, they think you're hiding something from THEM if they can't actually SEE what they're signing.

Or is 44, just the time to start accepting the inevitable bifocal lenses??!

Reply by HisHughness on 9/2/12 12:31pm
Msg #432844

Re: Shed some LIGHT on the Subject (sorry couldn't resist)

***Or is 44, just the time to start accepting the inevitable bifocal lenses?

44? Wow, bifocals are the least of your worries.

It's time to start screening assisted living options.

Reply by NVLSlady/VA on 9/2/12 7:37pm
Msg #432870

Bifocals

Oh my . . . . did I say "44"? I meant 84!!! And still going strong (:

Reply by LKT/CA on 9/2/12 12:58pm
Msg #432847

Re: Shed some LIGHT on the Subject (sorry couldn't resist)

<<<That said, I caused myself (and my borrowers) a lot of grief recently when I honestly didn't know what a particular document was for: Borrower/contractor agreement about improvements . . . It was very difficult to read and really looked like a document for new construction. When my uncertainty came through....>>>

Here's how I handle docs I'm not sure of (have never seen). I just admit right away that I don't know what the doc is and say "Let's flag the docs we need more info on and we'll call the loan officer for clarification". I put a sticky at the top of the doc and turn it sideways in the stack.

After the rest of docs are signed, I attempt to call the loan officer or the TC. If no one can be reached, I offer to wait 10 or 15 mins. and try again. By this time, the borrowers are tired and just want to be "done" with the signing so they sign and say they'll call the LO later. Works every time (at least for me it does).

If you act like you know and don't but won't admit you don't know...then the borrowers may become uneasy and unsure about signing. If you just admit you don't know (right away) and offer to call for more info, then your integrity remains good and most likely they'll just sign to be through with the signing (usually).

Reply by SERVICIO on 9/2/12 2:03pm
Msg #432850

Re: Shed some LIGHT on the Subject (sorry couldn't resist)

That is exactly right, LKT/CA. Hesitation to answer because your trying find an answer that best suits you is the wrong answer. Just say the truth and your integrity will shine and put the HO at ease and eventually they will sign.

Reply by JanetK_CA on 9/4/12 3:04am
Msg #432970

Re: Shed some LIGHT on the Subject (sorry couldn't resist)

A few months back, I finally broke down and bought myself a good pair of progressive lenses (i.e. like tri-focals without lines, or whatever they call them these days), and it is absolutely amazing how much brighter the light is around people's kitchen or dining room tables! Should have done it a lot sooner, but I'm glad I finally gave in when I did...

Reply by SharonMN on 9/4/12 12:21pm
Msg #433027

I do several things:

1. Present the package with the HUD, note, TIL, etc. first. so they feel comfortable with the terms of the loan. Under no circumstances start with the title affidavits or you'll be there all day. Leave those until the end!

2. Let them read for a while. They usually get bored by the time they've reviewed the mortgage.

3. Inform them that they have a right to request and review their documents before signing, and suggest that they insist on that next time BEFORE the signing is scheduled. I inform them that I was told they were ready to sign, but that it is their decision to make and that it doesn't matter to me if they do or don't.

4. Don't pressure them. It makes people worry that you have something to hide. I find people respond well to validating their concern: "I understand why you want to make sure you understand what you're signing."

I've never had anyone continue reading for the entire package.