Posted by Justin Laib on 4/26/13 6:44am
Msg #467216

Explaining that I didn't write the loan

I had an elderly couple doing a refinance. The lady had frustrations in getting all of her questions answered with the loan agency, so she thought I would be able to answer them. Of course, I couldn't. So her red flags go up even higher, because now it's go-time and she has to sign. Her husband just wanted to get the thing done and understood the nature of the agreement was complex. If he hadn't continued to gently nudge her to keep moving along, she'd have stared down every sheet of paper, continually to complain that she was getting taken advantage of. Of course I was patient with her (and her husband as well) but it took much longer than it needed to.

What are some words you notaries use for your clients in regards to our inability to explain every document that may be addressed at a signing? For the sake of putting them at ease, absolving yourselves from skepticism, and/or keep things moving along?

Reply by Rita Adu on 4/26/13 7:02am
Msg #467220

Before I open the package, I explain my role. I tell them that I am local and do not work for the lender. I let them know that I am independent and was contracted by the Title Company who wanted to accomodate their schedules in the comfort of their home. I let them know that I can briefly explain what the document is, witness their signatures, and notarize their signatures. If they have questions concerning their numbers or the terms of the loan, then we need to refer back to the lender or title company. This works very well for me.

Reply by Lisa Cirillo on 4/26/13 7:38am
Msg #467223

I, too, do what Rita does. I also let them know that at any time we can call the lender, since I always have numbers to call for answers. I reassure them that we can get the answers they need. I also tell them that the RTC gives them 3 days, so they can call and be rest assured of getting their answers. This works for me and I've never had anyone not sign.

Reply by Justin Laib on 4/26/13 12:50pm
Msg #467270

Good words here, thank you.

Reply by Linda_H/FL on 4/26/13 8:22am
Msg #467230

I'm going to throw something out here just for

giggles.

I would suggest re-thinking the giving of a "spiel" before starting signing and telling the signers/borrowers everything you can't do. Why put them on the defensive from the getgo? Don't address the "I can't answer that" matter until it comes up. This way you also avoid downplaying your own role and your own abilities in the transaction.

I introduce myself and start my thing - unpack my briefcase, open my journal, ask for ID, introduce the HUD, start completing the journal and ID forms. During this, all I tell them is we'll be going through the documents, they are getting an exact duplicate of the package, and if they have any questions at all let me know immediately and if we can't find the answer within the documents we'll call their LO.

Why put out fires that don't exist? I'm also going to reiterate that I feel if anyone is going to put themselves out there to do loan signings they should have the ability to describe each document they will be presenting. Remember, you can tell them the WHAT of the document, but you can't tell the WHY.

JMO

Reply by dgd/CA on 4/26/13 8:33am
Msg #467232

Linda... "Like" button :) n/m

Reply by 101livescan on 4/26/13 9:13am
Msg #467245

Re: I'm going to throw something out here just for

The one thing we should never do is overstep our scope of work. Be proactive, know how to put out fires, not ignite them.

Great post, Linda.

Reply by BobbiCT on 4/26/13 10:20am
Msg #467247

Linda "LIKE" button ...

With my introduction I simply and politely state, "I am not an attorney, therefore, I cannot give you any legal advice. If you have a question, please don't hesitate to ask and I will let you know if it is one I can answer or you can call your Loan Officer."

Often, I remind the borrowers that they have a three business day right to cancel during which time they can ask their Loan Officer questions or contact their PERSONAL attorney for an opinion. I've noticed some sophisticated borrowers have already contacted their personal attorney for a "heads up" I may have a question call during business hours.)

Reply by Justin Laib on 4/26/13 12:51pm
Msg #467271

Re: I'm going to throw something out here just for

All great advice, thanks Linda.

So you always provide an exact duplicate of their package for them?

Reply by Matt_VA on 4/26/13 8:59am
Msg #467242

I'm fairly similar to what Linda H says. If you chat a little while getting things ready, getting journal out, docs, etc, you can maybe get a feel for their attitude. If they seeming scweemish ( is that a word?) I introduce the HUD, saying first something like "this the HUD settlement statement and it's required by federal law to show you all the fees and charges associated with your loan". Then, "please notice the bottom of page 3 which has a very nice recap of your basic loan terms" and place that page 3 in front of them. That page only, let them look at it for a few seconds. I then retrieve that page, ever so nicely, and hand them the entire HUD pages. Then it's "now at the tophalf of page 2 you will find amounts that would a charge to you like origination or discount points, please sign exactly as your name is printed, WHEN your ready".

The point of all this is to try to make BO feel like your on their side and not on the side of the evil lender, who is out to get them. Many times this approch can speed up the process. Other times it's just plain hopeless. The BO is insane or just stupid and your in for a 2 1/2 hr sit! I quess everyone just learns their own little tricks to speed things along. Hope this helps a little.

Reply by ananotary on 4/26/13 9:09am
Msg #467244

"Other times it's just plain hopeless. The BO is insane or just stupid and your in for a 2 1/2 hr sit!"

LOL!! So true!

Reply by Justin Laib on 4/26/13 12:54pm
Msg #467274

Absolutely. Good thoughts. I was able to grease the wheels of the conversation in several other ways, so it was alright, but wanted to get some advice anyway. So many clients think that the notary is intimate with all of the numbers and figures of the loan, and work in the same office as the people they've been dealing with on the phone about their loan.

Reply by desktopfull on 4/26/13 12:12pm
Msg #467259

Just one question.

When did the job description include convincing any borrower to sign the documents presented to them?

I don't believe it's my job to sell a loan to anyone. Your description of events leans toward this lady being coerced into signing the docs by you and her husband instead of providing her with someone that would answer her questions and alieviate her doubts concerning the loan.

If any one that I'm signing makes the comment over & over " ...that she was getting taken advantage of...", I am on the phone to the TC or loan officer. If they can't resolve her understanding of the loan, then I'm out of there. The people in front of us are supposed to have a clear understanding of what they are signing, especially for any notarizations.

I hope that this closing doesn't come back to bite you.

Reply by Justin Laib on 4/26/13 12:57pm
Msg #467275

Re: Just one question.

Completely agree. I felt no pressure to get the signing done, and even encouraged her that if she is uncomfortable, we could put off the signing until she was able to speak with someone about her insecurities. (That's when her husband jumped in... he wanted this thing done!)

I appreciate everyone's input on verbiage.

Reply by SharonMN on 4/26/13 1:18pm
Msg #467280

Re: Just one question.

....encouraged her that if she is uncomfortable, we could put off the signing until she was able to speak with someone about her insecurities

In my experience, simply reassuring the borrower that you are here to help them do what THEY want to do and not to convince them to sign anything they don't want to can be very comforting to the borrower. It can also make them realize you need them to make a choice: sign or don't sign (note grumble about the loan process for 2 hours isn't an option there!)

Reply by desktopfull on 4/26/13 1:21pm
Msg #467281

Re: Just one question.

"...(That's when her husband jumped in... he wanted this thing done!)..."

Therein lies the problem. That statement could prove that she didn't sign willing, along with her statement that you posted that she continued to "complain that she was getting taken advantage of."

I had one where the husband told his wife to sign or he would file for a divorce. I packed up and was walking out the door while they were still at the table arguing about the loan. They both wanted to know where I was going and explained to them that I couldn't allow the wife to sign due to the threat of divorce being made from the husband. They both were furious. I contacted the TC and they told me to get out of there immediately and that they would inform the lender of the situation. Don't know if they ever got their loan, but that was coercion and I wasn't going to be a part of that mess. The husband had lied to the wife about everything concerning the loan.