Posted by Raj Sahu on 3/11/13 12:30am
Msg #460483

Which Doc tells borrower TOTAL amount they'll pay each mo.

Most borrowers want to SEE the amount they will be required to pay every month--- the net amount that includes P, I, taxes etc. Should I steer them to the TIL ( apart from NOTE and HUD which dont give the total monthly amount).

Reply by Rose Covarrubias on 3/11/13 12:48am
Msg #460484

There are several docs you can see this info:
1. the loan commitment
2. the Truth and Lending....shows the interest rate (same on Note), Principal & Interest, Tax & Insurance
3. and not all the time the package includes First payment letter. Show all of the above.
The Note only has the amount financed, interest rate, when payment is going to be due, length of loan and where the payment is to be sent to..
I hope this helps.....

Reply by CopperheadVA on 3/11/13 6:09am
Msg #460490

The HUD DOES tell you the total payment, with taxes and insurance.

Reply by jba/fl on 3/11/13 9:03am
Msg #460494

The HUD Settlement Statement

See box on lower part of page 3. Outlines all the details of the loan. Run over this with the BO and then ask: is this what you are expecting? If so, they should be signing happily away with no difficulties. If yes, save yourself lots of time and call the LO immediately and let them talk to the BO. If that doesn't work - pack up and leave.

Since few will pay full fee for a no sign, time is important here. Get out - you are not to talk them into anything - and have as little invested as possible. Of course, you will utter that when this is gets squared away to their benefit and liking, etc., you hope to see them later.

Reply by NJDiva on 3/11/13 11:41am
Msg #460530

Whaaaaat? Oh boy! Well, I agree with everything Jules said

The HUD is the first thing I start out with before I do anything. As I'm documenting their information in my Notary Log, I have them review it, whether they received a copy or not. I let them know that their contact person should have reviewed the first two pages with them. Pages one and two show the loan amount and fees, along with the itemization of the fees on page 2. I ask them if that happened. If so, I tell them, "then I like to review this third page with you because this, in a nutshell, is the loan. If this information is correct the rest of this package just supports and documents this."

But quite honestly, I'm rather perplexed as to why, if you are experienced, you do not know this? It is so incredibly important to be knowledgeable of the information and documents that we are presenting to consumers.

I would encourage you to pursue a training course. If not for yourself, then for the SS's, Title Companies, Financial Institutions and borrowers you are associating with. This is basic information we should all be able to reference if we are going to be serving in the capacity of a Signing Agent (especially when proposing to be an experienced one.)

Reply by notarydi/CA on 3/11/13 1:04pm
Msg #460547

Re: Whaaaaat? Oh boy! Well, I agree with everything Jules said

Agree with what everyone has said. Always go over page 3. Had one last week...30 year term on HUD...15 year term on Note & TIL. Complete redraw. Had one where term was 3 years. Zero was left off. Huge pmt. BO was mad. Complete redraw.

Reply by ReneeK_MI on 3/11/13 2:08pm
Msg #460560

For the reasons in this post, I do NOT use HUD for terms

Every loan has a version of what's usually titled the First Payment Letter. The data on that letter, which is drafted by the Lender, and it's PURPOSE is to disclose the due-date, breakdown and total of the loan payment - at least for the next 12 months (if escrows &/or MIP included, might change after that).

The HUD is compiled by the Settlement Agent and the data is manually input - while the document IS approved by the lender, the scrutiny is generally given to the 1st & 2nd page. The data regarding the loan terms on the 3rd page is just too ripe for error and NOT a part of the binding loan documents.

I try to use 'the horse's mouth' for every item disclosed - if I'm disclosing loan terms, I'm going off the Note. If I'm disclosing a complete payment breakdown - that's coming off the First Payment Letter. The HUD is the 'horse's mouth' for Settlement costs and fees and payoff amounts, cash due or cash back.

Unless asked, I gloss over page 3 by saying "This is a brief synopsis of the loan terms, which we'll go over next on the actual Note." and I move on.

Reply by sigtogo/OR on 3/11/13 6:36pm
Msg #460625

agree-HUD can be wrong so not reliable source for terms n/m

Reply by JanetK_CA on 3/12/13 2:29am
Msg #460691

Also agree. Seen too many errors to trust that page anymore. n/m

Reply by NJDiva on 3/13/13 10:35am
Msg #460930

Wow! Thanks so much for this insightful, yet incredibly

vital point.

See, I CONTINUE to learn. I'm so grateful to this site and those wise long-timers that share their experience!!!

Reply by Kenny Services - Dawn on 3/11/13 12:33pm
Msg #460542

Well it is on the TIL, but all the loans that I have closed generally have a first payment letter or instructions that give the payment breakdown P&I, plus taxes and Ins and total monthly payment and where to make the payment if a statement or invoice is not received by the 1 st payment due date. You should have come across this if you are experienced.

Reply by sigtogo/OR on 3/11/13 6:41pm
Msg #460626

Raj-your profile claims you are experienced, error free and

certified signing agent. sorry to be blunt, but your questions of the last couple of weeks indicate otherwise. please read as much as you can here and search what you are looking for on the net. I applaud you for wanting to know as opposed to blindly signing people, but please do some research.
best of luck in your new endeavor.