Posted by Randy Crawford on 4/29/13 11:23pm
Msg #467783

Confused about where to get instructions and stipulations

Hello Colleagues, I'm preparing to embark on my new adventure as a Loan Signing Agent. To make sure I got it down, I have taken two courses and bought two books! However, I'm still confused about a couple of things. I'm not clear on which documents to check to see any stipulations and other instructions that I must follow. I know the amount to collect from the borrower (if any) will be on the HUD-1, but I've seen other references that indicate I need to also refer to various other 'instructions' documents to see about stipulations and instructions I must follow.

There are escrow instructions, borrowers instructions, lenders instructions, etc. As I look at all of these documents (both in sample docs and also in my own home loan doc's,) it isn't obvious to me what, if any, of the instructions in these document are directed to the loan signing agent. Can someone kindly help me understand where I should be looking to find instructions for ME as the loan signing agent, actions I must take and/or items I must collect from the borrower?

Much appreciated!

Reply by CarolF/NC on 4/30/13 12:08am
Msg #467788

When you actually receive an assignment

they will be in there and usually very obvious. Sometimes their will be lender instructions, title company instructions and signing service instructions. Sometimes they contradict each other so always ask when in doubt. They are labeled signing agent, sometimes notary and sometimes Closing agent. I don't consider myself a closing agent but they will sometimes call you that.

Reply by Lee/AR on 4/30/13 12:14am
Msg #467789

Re: When you actually receive an assignment

CarolF/NC is spot on. I've been doing this for 20 years and my motto is still: when in doubt (or more likely due to conflicting instructions) CALL! They'd rather you call for clarification than screw it up.

Reply by JanetK_CA on 4/30/13 12:15am
Msg #467790

Instructions specifically for signing agents are usually directed to "notary" and most often come from a signing service. But you've hit on a very good question - and one of the biggest challenges to new signing agents because other terms tend to be used interchangeably (e.g. sometimes also "closer", etc.) However, you will typically see instructions from the lender to title/escrow (also referred to as Settlement Agent or Closing Agent) as well as instructions from title/escrow, very few of which are directed to the notary. However, they can be very instructive. They will also vary greatly in content, quantity and quality from company to company.

I don't have the energy at this point to get into much detail, but I recommend you read as much as possible of the instructions in all the packages you receive and the pieces will begin to fall into place. It's also a great way to continue your education in this business. It might help to know that loan signings used to be done in the office of the title/escrow person, so sometimes the things we might be looking for will be scattered in amongst other instructions (e.g. lender to settlement agent).

Reply by Notarysigner on 4/30/13 7:15am
Msg #467800

Not to be confused with this post but it does make you wonder just how much someone knows about "their" loan Docs (if they are fortunate enough to own their own home) when they are now charged with explaining them to someone else - Good morning Carol, Lee and JanetK

Reply by Stephanie Santiago on 4/30/13 11:32am
Msg #467848

Interesting post James; however, I am a Notary Public and

it is my role to identify the signer and notarize their signature. I do not explain their docs to them, but will point out a doc where they may find an answer to a question they may have.
I have the signers call the Lender to explain docs to them.
It is the Lender's responsibility to explain the documents to the borrower.
I do not want anything during a signing to be misconstrued as an action not in line with California notary Law.
Naturally, there are exceptions, and it all generally works out.
I often use the 3-day recind document to put the borrowers at ease and direct them to call the Loan Officer first thing in the morning, if it is a late signing.

Reply by Notarysigner on 4/30/13 2:49pm
Msg #467891

Re: Interesting post James; however, I am a Notary Public and

No they are NOT charged, poor choice of words... Asked to present the Docs would be better.

I explained the Docs as needed, I didn't author them, fill them in and they are not mind. I refer the bwr to the lender/TC at all times but if they want to know about the septic tank disclosure, I can answer that!

Reply by Stephanie Santiago on 4/30/13 11:36am
Msg #467850

Are we "charged" with explaining documents to the borrower?

Somewhere along the way, I missed that.

Stephanie Santiago

when they are now charged with explaining them to someone else
????? This is new to me & CA notary law does not indicate we are charged to explain docs.

Reply by Randy Crawford on 4/30/13 7:48pm
Msg #467941

Thank you all very very much for taking the time to answer my question. So, if I'm understanding correctly, there MAY be instructions I need to be aware of in any of the various 'instruction' documents (escrow instructions, lenders instructions, borrowers instructions, etc.), so I have to read through those documents and look for instructions that call out as being for the notary, or signing agent (or something similar) Yes?

If you wouldn't mind one more followup question. . . of the various instruction documents, are there any that are more likely to contain instructions for me than others?

Reply by CopperheadVA on 4/30/13 8:12pm
Msg #467943

I don't ever read the closing instructions. Those are for the closing/settlement agent. True, if you read those instructions you can gain information/knowledge - such as how the lender wants a POA signed or if there is a limit to how much cash back a borrower may receive in the transaction. If there is something specific for the transaction that the notary needs to know, I believe it is the settlement agent's responsibility to communicate that to the notary/signing agent.

I do always read the notary instructions, if there are any.

Reply by Linda_H/FL on 4/30/13 8:36pm
Msg #467945

"there MAY be instructions I need to be aware of in any of the various 'instruction' documents (escrow instructions, lenders instructions, borrowers instructions, etc.), so I have to read through those documents and look for instructions that call out as being for the notary, or signing agent (or something similar) Yes? "

IMO - no - you do not need to read through all the lender instructions. Your notary instructions should be sent separately from the hiring party (title or ss) and it's up to THEM to make sure THEY know what's required and relay it properly to you. Those instructions in the loan packages are from lender to title - it's more info than you really need to be bothered with. I, like Copperhead, never read them either -

Review your confirmation completely and carefully and look for specific notary instructions with your closing docs. That's all.

Reply by JanetK_CA on 5/1/13 1:33am
Msg #467955

There's too much variation from one set of docs to the next to answer that. Like Copper and Linda, I don't read closing instructions either, unless I'm looking for a particular bit of info. The recommendation to read them was intended as a learning tool until you get up to speed.

Reply by Randy Crawford on 5/1/13 5:32pm
Msg #468146

Thanks so much all of you! Very helpful!