Transcription

10 Steps to a Flawless Loan SigningLaura BiewerNNA Instructor and Notary Signing Agent

Poll QuestionTell us about yourself:o This is my first NSA Webinaro I have attended 1 previous NSA webinaro I have attended 2 previous NSA webinarso I have attended more than 2 previous NSAwebinars

ObjectivesUnderstand the role of the NotarySigning AgentUnderstand who the customer is andwhat are the customer's expectationsKey steps to managing a loan signingfrom acceptance to invoicing 2012 National Notary Association

Role of the NSANotary SkillsLoan Signing SkillsBusiness SkillsCertification 2012 National Notary Association

Expectations of NSAsCommunicationPromptnessAttention toDetailCustomerServiceExpertiseProfessionalism 2012 National Notary Association

Poll QuestionTell us more about yourself:o I am thinking about becoming an NSAo I have decided to become an NSA, buthaven’t accepted an assignment yeto I have completed my first few assignmentso I have been an NSA for a while now

10 Steps Introduced1. Identify Obstacles and Recovery Plans2. Contact the Borrowers3. Evaluate the Environment4. Describe the Signing Process5. Execute the Documents 2012 National Notary Association

10 Steps Introduced6. Review the Documents7. Communicate Signing Completion8. Send Faxbacks9. Drop the Package10. Invoice the Customer 2012 National Notary Association

Step 1Identify Obstacles and Recovery Plans Location safety and accessibility Your ability to fulfill all requirements: faxing, dropdeadline same day Scope of assignment, size of package, number ofborrowers Know your availability 2012 National Notary Association

Step 2Contact the Borrower Confirm ID to be presented at the signing Check to confirm the borrower's name is consistenton the ID and documents Inform the borrower if they need to provide insurancedeclaration page, photocopy of ID and/or a check Inquire about the workspace and ensure you will haveborrower's uninterrupted attention 2012 National Notary Association

Step 3Evaluate the Environment Upon arrival for the signing, make sure the table isappropriately suitable for signing loan documents 2012 National Notary Association

Step 4Describe the Signing Process Clarify your role as the NSA Describe how documents will be signed Clarify that there are to be no markings on documentsother than where indicated Describe how to handle corrections Describe how borrower is to sign his/her name anddate the documents 2012 National Notary Association

Step 5Execute the Documents Present the documents that answer the mostcommon questions: HUD, Note, etc. Introduce each document Direct where signature and initials are to be made Notarize the documents at the table Complete the journal entries for the notarizations atthe table 2012 National Notary Association

OMB Approval No. 2502-0265A.Settlement Statement (HUD-1)B. Type of Loan1.FHA2.RHS4.VA5.Conv. Ins.C. Note:3.Conv. Unins.6. File Number:7. Loan Number:ML-098762009110008. Mortgage Insurance Case Number:This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown. Items marked“(p.o.c.)” were paid outside the closing; they are shown here for informational purposes and are not included in the totals.E. Name & Address of Seller:D. Name & Address of Borrower:RICHARD WILLIAM ROGERS4098 LARWIN AVENUELOS ANGELES, CA 90032F. Name & Address of Lender:WALTER AND GERRI SINGLETARY9087 VIA PRINCESSASANTA CLARITA, CA 91351TRISTAR FINANCIAL CORP.1000 MAIN STREETLOS ANGELES, CA 90025G. Property Location:H. Settlement Agent:I. Settlement Date:8624 OAKLAWN AVENUE, #13CANOGA PARK, CA 91304SOUTHERN ESCROW02/19/2010Place of Settlement:1001 MAIN STREET, LOS ANGELES, CAJ. Summary of Borrower’s TransactionK. Summary of Seller’s Transaction100. Gross Amount Due from Borrower400. Gross Amount Due to Seller 252,500.00101. Contract sales price102. Personal property401. Contract sales price402. Personal property 4,414.12103. Settlement charges to borrower (line 1400)403.104.404.105.405.Adjustment for items paid by seller in advanceAdjustment for items paid by seller in advance106. City/town taxes Paid406. City/town taxesto407. County taxesto408. AssessmentstotoPaid 2/19/10 to 7/01/10108. Assessments Paidto109. Proration of HOA Dues 2/19/10 to 3/01/10 1,027.87107. County taxes 120.00409.110.410.111.411.112.412. 258,061.99120. Gross Amount Due from Borrower200. Amount Paid by or in Behalf of Borrower 0.00420. Gross Amount Due to Seller500. Reductions In Amount Due to seller 56,346.00201. Deposit or earnest money 202,000.00202. Principal amount of new loan(s)203. Existing loan(s) taken subject to501. Excess deposit (see instructions)204. Credit from Selling Agent 1,000.00!"# %&'()) () * ,- .( -/&/0 1(&2205.505. Payoff of second mortgage loan206.506.207.507.208.508.209.509.Adjustments for items unpaid by sellerAdjustments for items unpaid by seller210. City/town taxesto510. City/town taxesto211. County taxesto511. County taxesto212. Assessmentsto512. 17.218.518.219.519. 259,346.00220. Total Paid by/for Borrower300. Cash at Settlement from/to BorrowerFromTo Borrower 0.00520. Total Reduction Amount Due Seller600. Cash at Settlement to/from Seller301. Gross amount due from borrower (line 120)302. Less amounts paid by/for borrower (line 220)303. Cash 0.00502. Settlement charges to seller (line 1400)503. Existing loan(s) taken subject to( 258,061.99 259,346.00 ) 1,284.01601. Gross amount due to seller (line 420)602. Less reductions in amounts due seller (line 520)603. CashToFrom Seller() 0.00The Public Reporting Burden for this collection of information is estimated at 35 minutes per response for collecting, reviewing, and reporting the data. This agency may not3(1103- -45, 52)( .&-5(26 &27 '(8 & 0 2(- 0985 07 -( 3(.:10-0 -45, )( .6 8210,, 5- 75,:1&', & 38 02-1' ;&157 3(2- (1 28.?0 # @( 3(2*702-5&15-' 5, &,,8 07A -45, 75,31(,8 0 is mandatory. This is designed to provide the parties to a RESPA covered transaction with information during the settlement process.Previous edition are obsoletePage 1 of 3HUD-1

L. Settlement Charges700. Total Real Estate Broker FeesPaid FromBorrower’sFunds atSettlementDivision of commission (line 700) as follows :701. to702. toPaid FromSeller’sFunds atSettlement703. Commission paid at settlement704. 375.00800. Items Payable in Connection with Loan801. Our origination charge 40.00B!C# D(8 3 075- ( 34& /0 E:(52-,F )( -40 ,:035*3 52-0 0,- &-0 34(,02 (from GFE #1)(from GFE #2)803. Your adjusted origination charges(from GFE #A) 40.00804. Appraisal fee to(from GFE #3) 375.00805. Credit report to(from GFE #3)806. Tax service to(from GFE #3)B!G# H1((7 30 -5*3&-5(2 -( (from GFE #3)808.809.810.811.900. Items Required by Lender to be Paid in Advance901. Daily interest charges [email protected] 902. Mortgage insurance premium for/day(from GFE #10)903. Homeowner’s insurance for 311.96(from GFE #3)months toyears to(from GFE #11)904.1000. Reserves Deposited with Lender1001. Initial deposit for your escrow accountmonths @ 44.83months @ per month 2months @ 268.75per month 537.501005.months @ per month 1006.months @ per month1003. Mortgage insurance1004. Property Taxesper month(from GFE #9) 627.16(from GFE #4) 1,698.00 134.49Reserve 31002. Homeowner’s insurance - -44.831007. Aggregate Adjustment1100. Title Charges1101. Title services and lender’s title insurance1102. Settlement or closing fee Southern Escrow 705.001103. Owner’s title insurance(from GFE #5)1104. Lender’s title insuranceFirst Title Co.1105. Lender’s title policy limit 202,000.001106. Owner’s title policy limit 252,500.00 466.001107. Agent’s portion of the total title insurance premium to First Title Co. 1,255.701108. Underwriter’s portion of the total title insurance premium to 137.30 70.001109. Sub-Escrow Fee to First Title Co.1110.1111.1200. Government Recording and Transfer Charges(from GFE #7)1201. Government recording charges1202. Deed 22.00Mortgage 73.00 95.00Release (from GFE #8)1203. Transfer taxes1204. City/County tax/stampsDeed Mortgage 1205. State tax/stampsDeed Mortgage 1206.1300. Additional Settlement Charges(from GFE #6)1301. Required services that you can shop for1302. HOA Transfer Fee to POC 175.001303. HOA Dues Feb (Seller) to Oak Creek HOA 300.001304. March HOA Dues to Oak Creek 300.001305. Condominium Insurance 1 year to Mercury Casualty Company 592.001400. Total Settlement Charges (enter on lines 103, Section J and 502, Section K)Previous edition are obsoletePage 2 of 3 4,414.12HUD-1

Good Faith EstimateHUD-1# 801 0.00 40.00# 802 0.00Your adjusted origination charges# 803 0.00Transfer taxes# 1203 0.00Comparison of Good Faith Estimate (GFE) and HUD-1 CharrgesCharges That Cannot IncreaseHUD-1 Line NumberOur origination chargeD(8 3 075- ( 34& /0 E:(52-,F )( -40 ,:035*3 52-0 0,- &-0 34(,02Charges That In Total Cannot Increase More Than 10%Government recording charges 40.00Good Faith EstimateHUD-1 115.00 95.00# 1201#######TotalIncrease between GFE and HUD-1 ChargesCharges That Can ChangeInitial deposit for your escrow accountDaily interest charges 28.36/dayHomeowner’s insuranceor %Good Faith EstimateHUD-1# 1001 0.00 627.16# 901 0.00 311.96# 903###Loan TermsYour initial loan amount is 202,000.0030Your loan term is5.125Your initial interest rate isYour initial monthly amount owed for principal, interest, and anyyears%includes mortgage insurance isPrincipalInterestMortgage InsuranceCan your interest rate rise?NoD0,6 5- 3&2 5,0 -( & .&I5.8. () and can change again everyinterest rate can increase or decrease byguaranteed to never be lower thanEven if you make payments on time, can your loan balance rise?Even if you make payments on time, can your monthlyamount owed for principal, interest, and mortgage insurance rise?Does your loan have a prepayment penalty?Does your loan have a balloon payment?onTotal monthly amount owed including escrow account payments. Every change date, your%. Over the life of the loan, your interest rate is% or higher thanNoYes, it can rise to a maximum of NoD0,6 -40 * ,- 523 0&,0 3&2 ?0 (2 owed can rise to J# K40 * ,- 34&2/0 L511 ?0 (2after %.&27 -40 .(2-41' &.(82- . The maximum it can ever rise to is NoYes, your maximum prepayment penalty is NoYes, you have a balloon payment of .due inyearsYou do not have a monthly escrow payment for items, such as property taxes andhomeowner’s insurance. You must pay these items directly yourself.You have an additional monthly escrow payment of 313.58that results in a total initial monthly amount owed of 1,413.44. This includesprincipal, interest, any mortagage insurance and any items checked below:Property taxesHomeowner’s insuranceFlood insuranceNote: If you have any questions about the Settlement Charges and Loan Terms listed on this form, please contact your lender.Previous edition are obsoletePage 3 of 3HUD-1

MIN: 1000000-0200911000-7FEBRUARY 12, 2010NOTELoan Number: 200911000LOS ANGELESCALIFORNIA[Date][City][State]8624 OAKLAWN AVENUE, NO. 13 (CANOGA PARK AREA), LOS ANGELES, CALIFORNIA 91304[Property Address]1.BORROWER'S PROMISE TO PAY202,000.00In return for a loan that I have received, I promise to pay U.S. (this amount iscalled "Principal"), plus interest, to the order of the Lender. The Lender is TRISTAR FINANCIALCORP., A CALIFORNIA CORPORATION.I will make all payments under this Note in the form of cash, check or money order.I understand that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer andwho is entitled to receive payments under this Note is called the "Note Holder."2.INTEREST3.PAYMENTSInterest will be charged on unpaid principal until the full amount of Principal has been paid. I will pay interestat a yearly rate of5.125 %.The interest rate required by this Section 2 is the rate I will pay both before and after any default described inSection 6(B) of this Note.(A) Time and Place of PaymentsI will pay principal and interest by making a payment every month.I will make my monthly payment on the 1stday of each month beginning on APRIL 1,2010 . I will make these payments every month until I have paid all of the principal and interest and any othercharges described below that I may owe under this Note. Each monthly payment will be applied as of its scheduleddue date and will be applied to interest before Principal. If, on, I still oweMARCH 1, 2040amounts under this Note, I will pay those amounts in full on that date, which is called the "Maturity Date."I will make my monthly payments at 1000 MAIN STREET, LOS ANGELES,CALIFORNIA 90025(B) Amount of Monthly PaymentsMy monthly payment will be in the amount of U.S. 4.BORROWER'S RIGHT TO PREPAY5.LOAN CHARGESor at a different place if required by the Note Holder.1,099.86.I have the right to make payments of Principal at any time before they are due. A payment of Principal onlyis known as a "Prepayment." When I make a Prepayment, I will tell the Note Holder in writing that I am doing so.I may not designate a payment as a Prepayment if I have not made all the monthly payments due under the Note.I may make a full Prepayment or partial Prepayments without paying a Prepayment charge. The Note Holderwill use my Prepayments to reduce the amount of Principal that I owe under this Note. However, the Note Holdermay apply my Prepayment to the accrued and unpaid interest on the Prepayment amount, before applying myPrepayment to reduce the Principal amount of the Note. If I make a partial Prepayment, there will be no changes inthe due date or in the amount of my monthly payment unless the Note Holder agrees in writing to those changes.If a law, which applies to this loan and which sets maximum loan charges, is finally interpreted so that theinterest or other loan charges collected or to be collected in connection with this loan e