Posted by pat/WA on 7/8/13 6:48pm
Msg #475973

Signing from Hell

Just had a signing from Hell and it was only an "Application"

Reply by Penney/CA on 7/8/13 7:08pm
Msg #475976

Reverse mortgage?

Reply by pat/WA on 7/8/13 8:20pm
Msg #475994

No

Reply by BevTX on 7/8/13 8:33pm
Msg #475999

How was "only an application" a signing?

Reply by pat/WA on 7/8/13 8:35pm
Msg #476001

I don't know what you would call it if you don't call it a signing. But Whatever it was, it was worse than any closing I have had.

Reply by Claudine Osborne on 7/8/13 8:42pm
Msg #476003

Pat if it was the application..Watch out when they call your for the closing..Just say NO!

Reply by LKT/CA on 7/8/13 9:51pm
Msg #476016

Usually, when people share they've had a signing from hell, they describe HOW it was the signing from hell. Helps others to think about how they'd handle the situation and learn from it. What's the point of posting "Just had a signing from Hell and it was only an "Application"....??

Reply by GOLDGIRL/CA on 7/8/13 11:53pm
Msg #476027

Besides ...

I kinda thought that new regs were coming out or were out that forbid anybody besides the actual LO or his/her authorized ssistant to be involved in any loan origination stuff anymore .... anybody know anything new about this???

Reply by Darlin_AL on 7/9/13 10:06am
Msg #476059

Yes, please dish info as to app for what? n/m

Reply by Anita Edwards on 7/9/13 10:16am
Msg #476061

Re: Yes, please dish info as to app for what?

I find it so amusing the way many people attack the original poster for choice of words, English and Grammer use and just what not. I agree, an application would be a signing. What else would it be? Duh. And I took the original post as possibly directed to one or two specific people. I knew nothing about her signing from hell so I just moved on. It seems better to me than to spend time criticizing and evaluating errors that would have no end result such as improving a grade to pass a class. Really.

Reply by JPH13/MO on 7/9/13 10:52am
Msg #476065

Re: Why we shouldn't be doing apps anymore

Here is the information concerning this, up to you to decide whether or not you are willing to risk still doing apps after reading this:

All Notary Signing Agents engaged in any task related to mortgage lending origination should make themselves familiar with SAFE Act requirements. Specifically, Appendix C of Part 1008 of the SAFE Act requires contractors to obtain a mortgage originators license for participating in “administrative” or “clerical” tasks related to real estate lending. Penalties for failing to comply with licensing requirements are $25,000 per occurrence.

Lenders or signing companies engaged in these assignments of signing agents will argue that the assigned agent is not violating the SAFE Act because:
• They are performing administrative tasks only; and
• They do not negotiate terms or review different loan products with a borrower.

These exclusions only apply to W2 employees of a mortgage company or broker with an established “nexus” relationship that involves ongoing training, mentoring and employee reviews. Contract employees who are not under direct supervision of a licensed originator are prohibited from performing such “administrative” or “clerical” tasks.

Representatives from the Department of Housing and Urban Development (HUD), the Consumer Financial Protection Bureau (CFPB), and the Federal Financial Institutions Examination Council (FFIEC) confirmed it a violation of the SAFE Act for non-licensed contract individuals to participate in any task associated with real estate loan origination (including second-lien home equity and reverse mortgage products.)

The analyst from CFPB noted the agencies concern over this practice. “This practice is of concern. Lenders should know that making these requests of non-licensed individuals is in violation of the SAFE Act. The language in the law is very clear.” Further clarified by the representative, referring to HUD Publication 4060.1 that clarifies FHA Approved lenders are prohibited from allowing any employee to be engaged in any tasks associated with the origination, underwriting or processing of a real estate loan for any other lender. These regulatory violations, in addition to the SAFE Act citations, include noted fines and loss of their “FHA Approved Lender” status.

In addition to real estate lending, about 11 state agencies are contemplating managing the following license authorities this year: Sales Finance, Debt Adjustors, Debt Collectors, Debt Management Companies, Small Loan Lenders, Check Cashers, Currency Exchangers, Money Transmitters, Payday Lenders and Pawnbrokers.

NSA’s must keep up to date on their own state’s licensing requirements for any lending application process applicable to their assignments. While the SAFE Act clearly defines contractors’ roles and licensing requirements for real estate lending, each individual state may further impose licensing requirements on other forms of lending. Contact your state’s regulating agency that administers various licenses and verify your compliance prior to accepting signing work relevant to loan applications or other regulated fields.

To test your current activities for compliance to the SAFE Act, consider these questions:
1. Do you receive compensation or gain for any task related to mortgage loan origination?
2. Are you involved in the application for a loan related to residential property?

If you answered yes to any of the above questions, consider your risk and review the SAFE Act in its entirety before accepting assignments requiring any of those two responsibilities.

Background: On December 19, 2011, The Bureau of Consumer Financial Protection published regulations implementing specific laws under Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act. This act, commonly known as “The SAFE Act” (Secure and Fair Enforcement for Mortgage Licensing) or “Regulation G” created a licensing and compliance system (NMLS) under Regulation H.

Reply by Linda_H/FL on 7/9/13 11:22am
Msg #476075

Jillian - please quote your source...TIA n/m

Reply by Linda_H/FL on 7/9/13 11:23am
Msg #476076

BTW, should add - search here for S.A.F.E. Act

been discussed - very interesting and important read for all notaries, IMO.

Reply by JPH13/MO on 7/10/13 10:00am
Msg #476185

Re: Jillian - please quote your source...TIA

http://www.newjerseynotaryassociation.org/NJNASAFEAct.html

I Googled Safe Act and this link had the most comprehensive info, so it is the one I use. I have sent it to companies who ask me to do an app appointment and gotten replies of, basically: "OMG. We will turn this back and never do them again." So even signing companies, after reading it, realize apps should not be done by us (at least the good ones I work for).

Reply by Linda_H/FL on 7/10/13 10:21am
Msg #476188

IMO companies across the country should not be

relying on the interpretation of one state's notary or notary association. They should be relying on the federal statute itself.

JMO

Reply by Bear900/CA on 7/11/13 12:43am
Msg #476295

S.A.F.E. article safe? Maybe I'm missing something.

The article was written by Chrissey Ladd, a notary. It’s a hodgepodge of information.
http://chrissey.blog.com/category/document-preparers/

Here’s what the Federal Register and HUD say regarding the S.A.F.E. Act.
CFPB Consumer Laws and Regulations SAFE Act CFPB Manual v.2 (March 2012) SAFE 1
Secure and Fair Enforcement for Mortgage Licensing Act1
Pg 3
Mortgage loan originator or MLO means an individual who (1) takes a residential mortgage loan application and (2) offers or negotiates terms of a residential mortgage loan for compensation or gain. The term mortgage loan originator does not include:
• An individual who performs purely administrative or clerical tasks on behalf of an individual who is an MLO;

http://portal.hud.gov/hudportal/documents/huddoc?id=SAFERULE.pdf

38464 Federal Register / Vol. 76, No. 126 / Thursday, June 30, 2011 / Rules and Regulations

Pg 6 – BEST TO READ THIS ENTIRE PAGE:

The proposed rule also provided that HUD interprets the term ‘‘takes a residential mortgage loan application’’ to exclude an individual whose only role with respect to the application is physically handling a completed application form or transmitting a completed form to a lender on behalf of a prospective borrower. This interpretation is consistent with the definition of ‘‘loan originator’’ in section 1503(3)(A)(ii) of the SAFE Act, and with HUD’s above discussion of ‘‘takes an application.’’

http://www.hud.gov/offices/hsg/ramh/safe/smlicact.cfm

SAFE Mortgage Licensing Act

B. Definition of Loan Originator

HUD interprets "taking" an application to mean receipt of an application for the purpose of deciding whether or not to extend the requested offer of a loan to the borrower, whether the application is received directly or indirectly from the borrower.

CFPB: http://www.consumerfinance.gov/regulations/

Regulation G: S.A.F.E. Mortgage Licensing Act – Federal Registration of Residential Mortgage Loan Originators

http://www.ecfr.gov/cgi-bin/text-idx?c=ecfr&SID=4615b6c10c256cd61c11ec9883b70bd6&rgn=div5&view=text&node=12:8.0.2.9.6&idno=12

e-CFR Data is current as of July 8, 2013

§ 1007.102 Definitions.

Mortgage loan originator means
(1) An individual who:
(i) Takes a residential mortgage loan application; and
(ii) Offers or negotiates terms of a residential mortgage loan for compensation or gain.
(2)(i) The term mortgage loan originator does not include:
(A) An individual who performs purely administrative or clerical tasks on behalf of an individual who is described as a mortgage loan originator in this section;