Posted by Scriba/NM on 8/2/13 1:58am
Msg #479016

Here's Something New - Can't Wait For This to Go Haywire

Citi Bank recently launched a pricing promotion to their borrowers. A requirement of this promotion is for the borrower to sign an EZ Pay Form during the closing in order to receive this benefit. To identify if this form needs to be executed, a cover letter is placed in the closing package indicating that the loan is part of this pricing promotion. It is important to tell the borrower that he/she is required to complete the EZ Pay Form as part of receiving this promotion. If the borrower refuses to complete this form, we request for you to adjourn the closing and contact ServiceLink immediately.

#1 - Hopefully the loan officer will tell the borrower(s) that the specific loan approval is tied to them accepting the terms of the EZ Pay Form. If he/she does that, not a problem.

#2 - If the borrower(s) refuse to sign, how difficult is it going to be to "contact" someone? My experience in 13 years of doing this, is ...... really difficult. I usually get machines, with no humans attached.

Another thing to be handled by the notary - remember, you are CRUCIAL to the loan closing process - that's what they said at the NNA conference.

Reply by JanetK_CA on 8/2/13 2:12am
Msg #479019

LOL!! I'm betting on there being lots of surprised BOs. ;>) n/m

Reply by BobbiCT on 8/2/13 7:17am
Msg #479022

This is not "handled by the notary"

"Another thing to be handled by the notary - remember, you are CRUCIAL to the loan closing process - that's what they said at the NNA conference."

My apologies for written text reading harsh, however, REMEMBER

1. A Notary Public is a PUBLIC OFFICIAL whose allowable acts are specifically set forth by your state laws/statutes. A lender's EZ pay form does not fall under Notary Public services. A Notary Public is ONLY crucial for each notarization performed; nothing more than that.

2. As a Signing Agent/ subcontractor for the company that HIRED AND IS PAYING YOU FOR THESE OTHER SERVICES, you are presenting the EZ Pay Form to the borrowers. The Signing Agent is crucial to see that all documents are signed, initialed and that lender/title insurance company/signing service contracting company are complied with ... without violating the requirements of #1 above. For example, the Signing Agent's hiring party instructs you, as a notary to violate your State law re identification, the wording in the notarization block: Who's your boss?

As I have stated, written articles on and posted for Many years, including as a Guest Speaker/Educator at NNA conferences: You wear TWO hats. One as a commissioned public official with limited and strictly regulated duties (notary public) and Two as a Signing Agent with duties according to the contract you entered into between you and the hiring party for that specific assigned. Always REMEMBER which hat you are wearing each time you present one document to the signers.

For us moldly oldies aka well-seasoned meat, we all know the ethical dilemas this presents each time we run into a conflict. Which hat am I wearing? Who is MY client/customer that I must be loyal to - my State Commissioning Official or the Party That Sends Me a Check (or not if I refuse to perform the notarization for lack of identification or the customer refuses to sign)?

Reply by 101livescan on 8/2/13 8:54am
Msg #479027

LIKE! n/m

Reply by Lee/AR on 8/2/13 8:41am
Msg #479024

I've seen the concept before & the B was well aware of it. n/m

Reply by Shoshana/AZ on 8/2/13 8:56am
Msg #479028

Years ago Citi Bank Helocs had a similar promotion

They lowered the interest rate by 1/4 point if the borrower agreed to something. I am having a senior moment and cannot remember what that was.

Reply by FGX/NJ on 8/2/13 9:10am
Msg #479030

Re: Years ago Citi Bank Helocs had a similar promotion

As I recall they had to draw down part of the HELOC.

Reply by pan/nd on 8/2/13 11:05am
Msg #479047

Re: Years ago Citi Bank Helocs had a similar promotion

That's right Shoshanna,

they'd lower the interest rate by 1/4% if the borrowers agreed to have auto-pmts.

I did hundreds of 'em...(Citi Heloc's)

Never an issue.

Reply by MW/VA on 8/2/13 9:23am
Msg #479031

It's not so unusual for lenders to require auto-pay as a

condition of the loan. I have one co. that requires the borrowers to sign the EZ-pay form even if they are declining it. I got docked $25 for one I missed. Personally, I don't like the concept of seeing this as part of our job. I'm not there to sell the loan or anything that is a part of it. I follow instructions, but if the borrower has any question about payment arrangements, I have them call the LO. It is not my job, and I do see our function as "crucial" to the process. IMO there's no loan until we got those final papers signed correctly so the loan can fund.

Reply by Robert Wells on 8/2/13 9:40am
Msg #479034

Re: It's not so unusual for lenders to require auto-pay as a

I do a lot of Fifth-Third loans and they have the same requirement. If the borrower refuses to sign the auto pay agreement, the closing comes to a screeching halt. So far, that hasn't happened because the bank apparently has made that requirement clear to the borrowers beforehand.

Reply by Linda Juenger on 8/2/13 9:53am
Msg #479035

Re: It's not so unusual for lenders to require auto-pay as a

I have seen this form many many times in Citi loans recently. They HAVE to sign the form whether they want or do not want automatic withdrawl of their payment. The borrower has the option of opting in or out. Either way, they have to sign it. There is a little box that is to be checked if they don't authorize citi to automatic withdrawl.

Reply by MW/VA on 8/2/13 9:55am
Msg #479036

Yes, the key phrase is "the bank has made that requirement

clear to the borrowers beforehand."

Reply by parkerc/ME on 8/2/13 10:14am
Msg #479039

EZ Pay requirement - another addition to SA instructions...

and we wonder why there are a multitude of additional specific instructions (and examples) for the SA in the packages. Just add this to the list. (Sigh)

Reply by desktopfull on 8/2/13 10:26am
Msg #479041

These forms have been in every Citibank package I've closed this year. But I've only seen it mandatory for 3 of the borrower's I have signed and they were aware of the autopay before the closing and even had the void check ready. They told me that they got a lower interest rate and free checking account for agreeing to the autopay. The rest just check the decline box and sign the form. Others have voluntarily signed up for the autopay simply to not have to worry about making their payments on time.

This is the borrower's choice and who are we to interpret this as a deceptive lender practice. I don't understand NSA's that think it is their duty to read, interpret, define and reveal what they think the lender's intent is to the borrower's from the documents that they receive to be signed without ever seeing or talking to the borrower. NSA's need to learn to do the service they are hired to do and not insinuate themselves into other segments of the lending process that are beyond our control or responsibility.