Posted by Jessica Ward on 4/22/13 6:48pm
Msg #466648

New mortgage requirement

Just heard from a broker in my office (I also have a real estate license--and got this news in my real estate office this morning) that new requirements this month say that ID copies have to be obtained at origination of a new mortgage loan or refinance and NOT at closing.

I wonder if this will result in fewer name errors in docs?

Reply by Lee/AR on 4/22/13 6:53pm
Msg #466651

Probably not. Mortgages/notes are name as vested--which may or may not be what's on ID.
But it 'ought' to generate a discussion and possible pre-signing solution if anyone is on the ball.

Reply by Jessica Ward on 4/22/13 7:04pm
Msg #466653

In my experience, sometimes they check vesting, not always

I've had a LOT of surprises at the table.

Including one this week where borrower's ID expired 7 years ago. Was told she'd signed the last four refinances in the past five years--all on the same ID. (!!??) They couldn't understand what MY problem was. (oh dear).

Reply by Jessica Ward on 4/22/13 7:06pm
Msg #466654

Re: In my experience, sometimes they check vesting, not always

I realize this particular issue wasn't related to vesting, but it should have been caught, and a more proactive LO might have caught it. (And apparently four notaries should have too).

I've had a lot of surprises related to vesting too, that SOMEONE should have seen before me.

Reply by Carol Graff on 4/22/13 6:53pm
Msg #466652

That is the answer to a prayer!!

Reply by BrendaTx on 4/23/13 7:07am
Msg #466676

Okay, but loans have been closing for years with

no problem.

The drama over ID came in with signing agents and the XYZ selling notaries on the idea that mortgage fraud is the problem of notaries. It has been implied that notaries are the "gatekeepers" against mortgage fraud...not really. We just don't have that much power in our stamps.

More realistically, the ongoing shameful mortgage fraud episode we hear so much about is because of criminal loan officers, appraisers, and other insiders. Even with all the robo-signing crimes, my sources say that Texas only lost an average of six notaries (out of 420K) per year to commission revocation for the last decade.

Reply by SharonMN on 4/23/13 10:28am
Msg #466702

Re: Okay, but loans have been closing for years with

Actually, a lot of mortgage fraud WOULD be caught if the documents weren't sent back to some office for the notary to stamp without the signer appearing.

An ideal business process would be for the LO to check that the ID matches the name on the application. Title should check that the name on the application matches the name on the vesting, and all paperwork should be prepared accordingly (including, if necessary, correcting or updating the name on the deed).

Reply by Shoshana/AZ on 4/22/13 7:07pm
Msg #466655

I don't think it will make a difference.

They already get a copy of the ID when the app is taken. They should take 2 sets and send one set on to title.

Reply by Saul Leibowitz on 4/22/13 11:06pm
Msg #466667

Re: I don't think it will make a difference.

Well, sending one to title may not solve the problem. The title co. wants to know that the person you met with is the person authorized to/required to sign because they have an interest in the transaction whether or not vested in title. Getting good id solves that.
As to the ealrier post, I don't know how four notaries accepted an expired id.

Reply by Matt_VA on 4/23/13 9:02am
Msg #466686

I think most TC will still want a copy of ID.