I passed my NSA exam & got certified. However, until I get an actual assignment, I am going through the NNA’s Loan Documents Sourcebook.
Their online presentation was great, as it explained how to present the document to be signed.
But… they just covered the most basic type of loan with a Condo Rider.
The first set of loan docs that I went through was for a Refinance with an Adjustable rate. I’ve never heard of such a loan, as when one wants to refinance, they want a lower rate. So, that’s my first question.
Secondly, on the Servicing Disclosure statement and Borrower’s Certificate, it only has “Barry” signing for it, twice, on the same page. “Barbara” has been signing everything else alongside “Barry”. Is this a typo or does he sign twice, on each page?
Lastly, The Variable Rate Mortgage Program disclosure has “Barry” and “Barbara” singing, and then on the bottom of each signature, that has been indicated by the printed document, where they sign, are 2 more lines that require a signature. For whom do those signatures belong to? Or should or is supposed to sign?
I’m so sorry if the last one has confused everyone! But, your help will be greatly appreciated.
Congrats on the certification and welcome! So I will try my best at this without laying eyes on the actual docs, and break my thoughts down by your concerns individually.
About the Condo Rider… Just because the borrowers have an adjustable (AKA variable) rate does not mean they did not get a lower interest rate. It will just “adjust” accordingly at a lower rate than the previous loan. Also key word is “condo”… it is very common to have adjustable rates on property that is other than the “primary” residence of the borrower and/or investment properties (rentals).
I always default back to the URLA (Form 1003) to see who is applying for the loan (single or joint borrower). Narrowing this down will help you clean up the rest of the package as far as signatures go. If Barbara has been signing everything else next to Barry, this tells me she is on the loan, but is she a co-applicant or a co-signer (yes, they are different). If she is a co-applicant, more than likely she will also be on the title/deed. If she is just co-signing the loan, then more than likely she will not be on the title/deed and just the loan.
As for the extra signature lines, these are simply meant for more parties to the transaction ex. as if you had a buyer and seller purchase, or 4 people owned the same house during a Refinance (trust).
Hope this helps some. Like I said, hard without viewing docs, but keep in mind states regulate these transactions differently, especially Dower states like KY and OH that can really confuse not only notaries, but lenders and title companies as well. Good luck!
I’m not just a mobile signing agent, I’m a mortgage lending professional in the business for over 30 years. You’re looking at this a bit incorrectly first of all as we are not allowed to have an opinion on the terms or rate, etc so whether or not you understand why a person is obtaining an ARM loan, doesn’t matter so that issue can go by the wayside. In addition we are not allowed to explain anything but bare basics so if the customer has questions related to the ARM terms and adjustments, which many do - you’ll want them to call and speak to their lender right at the table and that is what all my 100+ companies dictate I am to do. If you ever have questions about who is signing what and where - call your signing company or title - whoever they steer you toward and ask. There is never a stupid question and they are the ones you need to ask, not anyone here. There are several reasons a spouse will sign some docs and not others - it isn’t just about whether or not there is a co-signor or co-owner. Every state is different with marital property laws and some couples don’t qualify for a loan due to one spouse having poor credit or they can get a better rate if they remove the poor credit spouse from the loan but that person may still be on title to the property. With respect I do have to say that I get extremely frustrated that the industry allows notaries to just take a couple online courses and tests and bam they are signing agents. The orders I receive are filled with nasty DO’s/DON’T’s to the signing agent because of all the mistakes that are being made by signing agents across the US. I’ve been in mortgage lending for 30 years and I believe only a mortgage or title professional is truly qualified to do signings. If you don’t actually know & understand the purpose of each document presented - that’s a problem.
Hey, congratulations. In the beginning, it can seem daunting and you will feel like you need to know everything to feel confident before and appointment but take it one day at a time and you will learn as you go. My advice to new agents is always remember the signers are just people who are probably more nervous that you are. So just go in there with confidence. In the end, you are just presenting them documents, and witnessing their signatures. You are not expected to explain loan documents beyond the ‘what’, ‘why’, and ‘where’ and tell the clients that with confidence. Ask them to reach out to their lender or title company for deeper questions.
I have a Youtube channel where I will answer many of the questions newbies face as they learn the ropes, and interviews with seasoned agents coming soon. Please feel free to subscribe.
All due respect - signing agents NEVER explain the “why” - that’s up to title or loan officer. Please don’t tell folks that - it’s wrong and will get them (and you) in a boatload of trouble if you/they do.
Congratulations on your first signing. It will only get easier from now on. Just study study those loan docs over and over again most have the same forms. Don’t ever hesitate to ask the title company any questions that is how you learn.
Additionally, as a side note…although you should not have “opinions” or “explain” things to signers (because at the end of the day your basically just reading and summarizing the page to them) does not mean you shouldn’t further your education in regards to the lending/title side of things. I saw a comment previously where someone stated that they “believed only a mortgage or title professional is truly qualified to do signings”. This is a totally irrational concept to me considering no 2 banks draft, execute, and close a refinance the same way, let alone any other real estate transaction. Just read the special instructions from the lender (that usually come with every signing) and call them with any questions/concerns. After all, 9 times out of 10 you will be calling them about an error the lending/title “professional” made on the docs anyway. God speed!
Beg to differ with this statement - after closing loans from multiple lenders for 25 years the majority of them are the same - save for differences associated with the different programs - don’t forget - all lenders have to comply with federal and state law in order to lend - so most lender docs are boilerplate.
Its OK to differ but not only do the lenders specific instructions that come with the orders tell you they are not all the same, but the fact that I have done 75 page conventional refi’s and 175 page VA refi’s also tell you they are not the same. Just because lenders have to comply with state and fed laws, doesn’t mean they cant add their own paperwork to the package (which every single one of them does) to comply and conform to their own institutions lending policies and procedures. Most definitely they are not the same. Every transaction is “lender specific”. Yes, they have to comply with fed/state lending laws, but they also have to comply with company policy as it relates to lending as well, and we know no 2 banks have the same lending policies right? (I hope)
