I was taught that when there are three copies of the Notice of Right to Cancel, that the signer signs all three copies (Receipt Acknowledgment and not in the cancel box … of course) and retains two for his/her file and an original of the three goes back with the loan package.
Today I was the borrower and the Notary (I didn’t want to make her uncomfortable and didn’t tell her that I was a signing agent…) took all three and included them in the Loan Package to be sent back to the Lender.
I asked if she wasn’t supposed to give me a copy, and she said no and that I have three copies in my copy of all documents that she left behind for me. I knew that, but I have always just returned one to the Lender and left the two additional copies (signed) with the Borrower.
Which one is right?
A) sent all three (3) (signed) back to the Lender or
B) sent one (1) (signed) back to the Lender and insert two (2) in the borrowers file copy?
What’s your take? (I have never BTW had an issue with any Lender on this topic)
Thanks
By federal law, you have to witness each customer sign and date all three in front of you. Then you tell the client that you are sending one back to the lender. Then you place the two copies in front of the client and say, I have to give two back to you to keep in case you want to change your mind. If you do wish to change you mind. You grab your set, sign and date on both forms, point to the “I wish to cancel” spot. You keep one for your record so that you have proof that you changed your mind on time, and mail or fax back the other one to (point to the area they can send, mail or call if applicable), by midnight of (point to the date area). Then you say. If you don’t want to change your mind, just keep them in your file for your record and don’t send it back.
Same deal if you have two or more signers. They each sign three copies obviously. You send one from each client to the lender. They each keep two and explain the same process as mentioned above. You also will tell them they only need one person to change their mind and the deal is off. They don’t need two to say no.
I was a banker and I know way too much on both ends, the lending side and the signing size so I probably explain too much. But very quick and efficient though. When I show up for each closing, I make the customers feel very comfortable and have full confidence in what they are signing for. Some even said that I made their signing fun and easy, no stress. Super organized and efficient, knowledgeable and professional 100% of the time.
I’m sure someone is going to say that I’m not supposed to advice the customer on blah blah blah blah blah.
To be a successful NSA. You have to know more than just pointing to where they need to sign. You have to be able to explain to the customers what they are signing for so they feel comfortable with the whole process.
Thanks
You and I are on the same page. My signing agent that did my refinancing this morning apparently was not, as she took all copies and send them back to the Lender. I was just curious if I was completely off on this one.
By not leaving you the two original that you signed and dated. She is actually breaking the law.
Called her on that one, and she’s been doing this for ten years. To each his/her own.
BTW can you share your info about Chase. I’ve been a SA for 7 years and never had an in.
Thanks
Of course I’m referring to primary residence only. Secondary home/investment/rental etc. do not have three days right of rescission period.
I will send the action plan to you and a couple other people later on tonight!
Action Plan sent. Best success to you.
I’m glad I came across this post! Thank you for the info I’ve been sending all the copies back to the lender! And what’s this about Chase? Lol can I get in on this?
Send one back to lender and two to borrower.
Correct. By not leaving you copies of the Right to Cancel, she and the signing company could be held liable for the whole refi.
I have done it both ways. I always read the instructions and some lenders say they will send a copy of the signed to the borrower. Lately most packets only have two copies so o pull one set out of the signers copy and have them sign and keep
Wow, so by the time they get the original back from the lender, the rescission period is over. Shacking head. Sounds like they are trying to keep their borrowers from canceling on time to me. The agent who witnessed the signed RTC supposed to always give two back immediately not a day later.
When I ran into these instructions, I explained to the borrowers that their lender would send them a copy of the signed docs, but in the meantime I always provided them with a paper copy of, at the minimum, the CD, Note, Security Instrument, First Payment Letter and, if applicable, the required number of copies of the NORTC - I never left a table without my signers having that in their possession.
(B.) You are absolutely correct. Borrower signs ALL 3 COPIES. 2 of those signed copies stay with the signer. 1 is returned with the executed loan pkg.
You are not alone. This has also happened to me when I was the borrower/signer. Inexperienced and shoddy notary signing agents abound.
I have much more patience with an inexperienced agent than I do with a signing agent who claims to have been doing it for ages and acts like a complete know-it-all. I can forgive someone making a mistake because they don’t know any better. But laziness I cannot tolerate.
When a borrower calls their lender to complain about their bad signing experience, these complaints are taken seriously. It triggers an inquiry. It is supposed to, anyway. Because the signing agent’s failures may be grounds for the signer to cancel the transaction. Bad behavior by signing agents creates risk for all parties.
Making the lender aware of what happened is a smart idea. If an inquiry reveals this is a new signing agent, maybe it can be fixed and considered a “learning opportunity”. But if it is a serious enough mistake or if it is a pattern of behavior, the hiring company may decide to mitigate their risk by simply removing the signing agent from their roster altogether.
I have been making 2 full sets of documents 1 for the borrower an the other for the lender. I put one full set in an envelope and seal it, the lender copies I have them sign and I inform them that they have a set in the envelope and I send all the ones from that set to the lender. I haven’t had any feed back from the lender that there have been any issues, hopefully its all good.
I would love to know about Chase as well 
I would love to know about chase as well …
The correct answer is a. The lender wants three copies back because if there was something weird with the signature or the date then they can refer to the other ones. If it makes you feel better you can always have them sign a notice of right to cancel from their copy package. I have had an issue with the closing department not liking the signature or the date was not legible enough for their liking. Best practices to return the entire original document package back to the lender unless otherwise specified. All it takes is one time for somebody to ask where the othe notice of right to cancels is at. Then you may not get another job from that company.
Do you deal the envelope with their copy at the table or before you arrive? If they’re copies need the dates changed, do you change them?