Recently a Mobile Notary stated that a new form was included in their package. A mobile notary disclosure was added, asking for the amount paid to the signing agent. Hmmmm, now the seller-buyers can see what the agent CLOSING their loan really gets paid ! Has anyone else seen this?
My thoughts… as lenders view these forms. They have to be asking themselves… WHY are we paying
$350 to the TC’s when they are only paying $85 to the actual agent??
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No…they won’t be asking themselves this - because they know the title company duties go far beyond just the signing - is pre closing, title review, title clearing, issuance of title policy (and determining insurability), prep of documents, coordinating with lender, post closing review and follow up - along with all the liability that goes along with handling all this (spoken by someone who used to sit on the other side of the table)
Actually, IMO $350 to the Title Company is a bargain
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This is my thought. I’m a lender providing a $400,000 loan to a client. This client, maybe, visited me once and did everything else on line. Common in todays economy. My client has his closing at home and meets the LSA who handles his closing. Even though the LSA discloses that they are an independent and doesn’t work for the bank or TC. This is WHO the client remembers. As the lender, I would want someone that is professional. NOT someone who works for $85.00, which by all of the posts …is loosing money.
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Agreed John, but keep in mind - in Florida Lender does not choose the title company - the Seller does. In the case of a refi I’m guessing it’s the LO - but although I agree with this “As the lender, I would want someone that is professional. NOT someone who works for $85.00, which by all of the posts …is loosing money.” - I stand by my statement that the fee for the title company on the CD goes far beyond, and is far more inclusive, than just the notary fee.
I feel the onus is on the title company to ensure this professionalism, either by way of screening their own notaries or, if they use an SS, making sure that SS uses nothing but experienced, professional Notaries. How can they accomplish this? By making sure they vet the notary they use AND STICKING with that notary instead of going for cheap, which seems to be SOP these days.
All this said, the weak link in this entire chain, IMO, is using an SS.
JMO
P.S. Let me add here - my true feelings and something I’ve beaten the drum about for years??
Put notary SA fee on CD as a POC item (like the appraiser usually) and notary gets paid AT THE TABLE…because once that package is signed and notarized, the notary/SA work is done - they’ve performed their duties and delivered the product - payment at the table.
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Yes & No. The lender will have their favorites and push them. Being a broker I’ve been part of 100’s of sales and see this day after day. My feeling is: this new form will bring the notary fee to the attention of the lender, where before it was LOST in the charges.
NOW, the real question is: WHY THIS NEW FORM…WHO DESIDED THIS ADDITION?
Put notary SA fee on CD as a POC item (like the appraiser usually) and notary gets paid AT THE TABLE…because once that package is signed and notarized, the notary/SA work is done - they’ve performed their duties and delivered the product - payment at the table.
I could not AGREE more!
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Is this possibly a company specific form? Or is this new disclosure form mandated by law?
NOW, the real question is: WHY THIS NEW FORM…WHO DESIDED THIS ADDITION?
YEP, Linda …that is the $64 question. As you have pointed out many times, the amount ascribed to the notary on the CD has several other TC charges added to the amount. I have addressed this as the client only sees the total ascribed to the notary seated in front of them. It occurred to me …NOT only is the actual amount paid to the notary is HIDDEN from the client, but is Hidden from the lender as well ! Hmmm. Could it be that this new form is LENDER produced?
Being that I have reviewed 100’s of CDs ( HUDS ) I am not aware of other stated charges where
non-related items are complied into one amount…it defeats the purpose of the DISCLOSURE of charges for the client. When you review the CD’s you will see amounts like $148.45 …including pennies! They are very detailed. When the notary fee is HIDDEN, it does not allow the client to shop for a cheaper price!
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One reason I can think of, John - is many times the notary is paid out of the title company’s operating account. If paid out of closing proceeds, they must disclose it on the CD - but if out of the operating account, then no disclosure is required as it’s a title company expense - title company discloses their fee, which is inclusive of the notary fee.
I despise that one entry - “Notary Fee” - very misleading.
Thanks Linda, Agreed it’s a BAD label to use. Why not call it a processing fee? it still hides the LSA fee from the lender and makes us LSA’s have to correct the clients understanding. Likely, we are the ONLY live people the clients meet …face to face. That’s the problem.
The 'Notary Fees" are line itemed in some of the documentation. This is sometimes the case in Texas, so I can’t address what happens in other States. The TC charges thousands to process a loan. This means the $200-400 notary fees collected is mostly profit for the TC not the Notary.
Keep in mind what we do is a commodity service. This means the Lender and Title really don’t care we’re will to accept for fees.