Transcription

Resource ManualPrepared by:Notary2ProCopyright 2013-2014

Thank you for purchasing this Resource Manual. We are very proud tooffer this to you.This Resource Manual was created for the purpose of giving you basictips and information as a Loan Signing Agent.We have enclosed a CD with your manual so that you can print out theinformation that pertains to a particular signing or just as a needed resource.If you have any questions please feel free to contact us at the following:E-mail: [email protected] call Carol or Barbara @916-777-59312

3

TABLE OF CONTENTSITEMPAGE NUMBER(S)A GLOSSARY OF TERMS4 - 10ACKNOWLEDGEMENT-SEPARATE11ANSWER YOUR CELL PHONE!12BACKGROUND CHECKS13BONDS vs E&O INSURANCE14CONFIRMATION - LABELS15CREDIBLE PERSON CERTIFICATE16CHEAT SHEET20DETERMINING COMPETENCY21EMAIL22E-SIGNING vs E-DOCS23GLBA24 - 25HABITS OF A SUCCESSFUL SIGNING AGENT26IDENTIFICATION-ACCEPTABLE FORMS27JURAT FORM28MARKETING YOURSELF29NON - BORROWING SPOUSE30NOTARY JOURNAL ENTRIES31NOTARY ROTARY-SIGNING CENTRAL32NOTARY SEARCH –MOBILE APPLICATION33OATH AND AFFIRMATION SAMPLES34OATH TO CARRY IN YOUR JOURNAL35PAGE SEPARATOR36POWER OF ATTORNEY37RESCISSION38STAMP– SAMPLE OF NOTARY STAMP394

TABLE OF CONTENTS CONTINUEDITEMPAGE NUMBERSSHIPPING40 –41STEP BY STEP TO A SIGNING42 –44SUBSCRIBING WITNESS45SUBSCRIBING WITNESS JURAT46SUBSCRIBING WITNESS PROOF OF EXECUTION47TENANCY48THERE IS A CHECK ATTACHED!49YOUR MARKETING TIPS50WARNINGS AND WHAT IF’S51- 53CONTACT INFORMATION FORMS54 - 605

A GLOSSARY OF TERMS1003: Uniform Residential Loan Application.ACKNOWLEDGEMENT: Formal declaration before a public official that one has signed a documentprior to recording real estate documents, such as grant deeds and deeds of trust, a Notary Publicacknowledges the persons signature on the document. Most documents that require notarization containthe acknowledgement on the document. Sometimes the notary will have to attach aseparateacknowledgment to a document.AKA: Also known as. A person who is also known by other names such as with or without a Jr., or a womanwho is married but has used her maiden name.ALLONGE: An Allonge is a document used to transfer the interest in a Note from one lender to another.Often used when a loan is being sold at the close of escrow. This document is signed by the lender transferring the interest in the Note and this signature is notarized by another notary.APR: Annual Percentage Rate: describes the interest rate for a whole year (annualized), rather than just amonthly fee/rate, as applied on a loan, mortgage loan, credit card, etc. It is a finance charge expressed as anannual rate. The nominal APR is the simple-interest rate (for a year). The effective APR is the fee compoundinterest rate (calculated across a year). The nominal APR is calculated as: the rate, for a payment period,multiplied by the number of payment periods in a year. Effective APR can include loan origination fees,monthly service charges, or late fees. The effective APR has been called the "mathematically-true" interestrate for each year.ARM: Adjustable Rate Mortgage: A mortgage where the interest rate is not fixed for the life of the loan. Thesemortgages adjust periodically based on an index that changes with the market conditions. The rate of interestis the sum of the index plus a margin (the margin remains fixed for the life of the loan). Most ARM's have periodic interest rate and payment caps, as well as life caps. These mortgages adjust periodically based on anindex that changes with the market conditions. The rate of interest is the sum of the index plus a margin (themargin remains fixed for the life of the loan). Most ARM's have periodic interest rate and payment caps, aswell as life caps.ATTORNEY STATES: There are states that require that closings be conducted by an attorney as opposed toa Notary. These states are: GA, MA, NY, NC, ND, SC, SD, TX, VA AND WVA.BALLOON PAYMENT: A loan which does not fully amortize over the term of the loan, thus at maturity of theloan a large amount of money would be due to payoff the loan. The payments are often very large thereforecalled Balloon payments.BORROWER: The Person or persons borrowing money.BUYER: Person or persons purchasing property and probably borrowing money.6

CLOUD ON TITLE: The term cloud on title refers to a deed (title to real property) which has been recordedbut includes an unusual characteristic that would give a reasonable person pause before accepting title.Often, the presence of a cloud on title provides the grantee the option to back out of a contract. Examples ofcloud on title can include a property's address being misspelled in a deed conveying title, a mortgage lienwhose repayment hasn't been officially recorded, a deed which has been signed but hasn't been properly recorded, an easement that has not been properly recorded, unpaid property taxes, a failure to transfer propertyrights (such as mineral rights) to a former owner of the property or selling the real estate interests before aprevious court case has defined current ownership. A cloud on title is generally considered synonymous withatitledefect.COMMITMENT LETTER: The commitment letter provides the borrower with a summary of all terms of theloan being promised to him by the lender, included are the guaranteed interest rate, monthly payment, repayment term and interest rate.COMMUNITY PROPERTY: Property acquired by husband and wife, or either, during the marriage when notacquired as separate property for either.COMPLIANCE AGREEMENT: The compliance agreement states that the borrowers must be willing to resigncertain loan documents if the mortgage company deems that there was incomplete or incorrect information ona previous document. Furthermore, the borrowers agree to resend said documents to the mortgage companyafter they are executed.CONFIRMATION: The email sent to the Notary which provides all of the information about their assignment.This would include the name, address and contact information for the borrower. This form will also containinstructions which the notary must read and follow.CORPORATE ASSIGNMENT OF DEED OF TRUST: The document used to transfer the interest in a Deed ofTrust from one lender to another. Used when a loan is sold from one lender to another.DEED: Formal written document transferring title to real estate; a new deed is used for each transfer. Thedeed should contain an accurate description of the property, should be signed and witnessed according to thelaws of the State where the property is located, and should be delivered to the purchaser on the day of closing.DEEDS OF TRUST: A three-party instrument between a borrower, called the trustor, a lender, called the beneficiary, and a neutral third party called a trustee. The deed of trust is the instrument that is recorded to giveadded assurance that the promissory note will be paid when due. Places a public lien on the property. For thelender to foreclose on a deed of trust they are not required to use the court system or the sheriff's office. Also,see Mortgage.DOCS: Slang for loan documents7

EASEMENT: An Easement is a certain right to use the real property of another without legal possession.Easements are helpful for providing pathways across two or more pieces of property or allowing an individualto fish in a privately owned pond. Easements are also created to allow utility companies to place permanentequipment on someone’s property, such as telephone poles.ENCROACHMENT: Encroachment is a term which implies "advance beyond proper limits". An examplemight be someone placing a fence across their neighbors property line.ESCROW OFFICER: The Escrow Officer is responsible for acting s a third unbiased party between Buyers,Sellers, and Lenders. They are responsible for the exchange of property and money between the parties onceall requirements have been met, per instructions from the parties involved in the transaction.ESCROW/IMPOUND ACCOUNT: An account maintained by the lender for payment of property taxes, hazardinsurance, mortgage insurance or other related expenses when applicable. The borrower pays these premiums to the lender in monthly payments along with the principal and interest. Lender disburses these fundswhen the bills are due and payable.FIXED RATE MORTGAGE: A mortgage where the interest rate is fixed for the life of the loan.FHA: Federal Housing Administration is a United States government agency created as part of the NationalHousing Act of 1934. It insured loans made by banks and other private lenders for home building and homebuying. The goals of this organization are to improve housing standards and conditions, provide an adequatehome financing system through insurance of mortgage loans, and to stabilize the mortgage market.FKA: Formerly Known As. An example might be a woman who used a maiden name as her legal name andis now married and using her married name as her legal name.FLOOD CERTIFICATION: A certificate which has the determination as to whether or not a property is in aflood zone or not. If so the lender will require the borrower to purchase flood insurance.FORM W9: A federal form which requests the taxpayer identification number (referred to as the TIN and mostcommonly the borrower's social security number) to report income paid, real estate transactions, mortgageinterest paid, acquisition or abandonment of secured property, or cancellation of debts.FORM 4506T: A federal form that enables receipt of a tax return transcript, verification that the person did filea Federal tax return, Form W-2 information, or a copy of a tax form.GFE: Good Faith Estimate.HAZARD INSURANCE: Homeowners Insurance (see below)HOMEOWNERS INSURANCE: Insurance which protects the homeowner against fire, theft and other hazards. Also covers liability protection. In the event the home is lost in a covered disaster, the loan against theproperty would be paid off first and any amount of money left over would be given to the property owner.8

HOMEOWNERS INSURANCE: Insurance which protects the homeowner against fire, theft and other hazards. Also covers liability protection. In the event the home is lost in a covered disaster, the loan against theproperty would be paid off first and any amount of money left over would be given to the property owner.HUD: Housing and Urban Development.HUD 1 SETTLEMENT STATEMENT: The HUD-1 Settlement Statement is a standard form in use in the United States of America which is used to itemize services and fees charged to the borrower by the lender or broker. The borrower has the right to inspect the HUD-1 one day prior or day of settlement. The form is filled outby the settlement agent who will conduct the settlement. Borrowers may compare their Good Faith Estimateto the HUD-1 Settlement Statement and ask their lender or broker about any changes.INTEREST RATE: The percentage of an amount of money that is paid for its use for a specific period of time.JOINT TENANCY: An undivided interest in property taken by two or more joint tenants. Upon death of a jointtenant, the interest passes to the surviving joint tenants rather than to the heirs of the deceased.LENDER: Refers to the bank or company actually loaning money to the borrower.LOAN OFFICER: The person working directly with the borrower for the purpose of obtaining a loan.LO: Slang for loan officer.LOAN APPLICATION: The Uniform Residential Loan Application (also known as the 1003 or ten o three), isbasically a summary of all the information the mortgage company used to determine the loan terms theyshould offer the borrowers. It includes background information about each borrower, employment history, assets and liabilities found on credit reports, and a summary of the terms of the loan. Each borrower must initialand/or sign each page of the loan application.LOAN PROCESSOR: The person in charge of handling the paperwork during the process of the loan, sometimes including the final loan documents.MIP: Mortgage Insurance PremiumMORTGAGE: A security instrument. This is basically the same document as the deed of trust. The mortgagerepresents the borrower's pledging their homes, security or collateral in exchange for the loan they are receiving from the mortgage company. This document reviews the basic information about the loan; loan amount,date of loan, borrowers names, and due date for complete repayment. There might also be riders attached tothe mortgage if there are unordinary provisions (i.e. Condominium, PUD, Variable rate mortgage). Most mortgages are derived from a pre-printed template and therefore include the same basic provisions, the highlightsbeing:(a) Borrowers must preserve the condition of the property.(b) Borrowers must always maintain insurance on the property and pay their taxes.9

MORTGAGE cont’d(c) Borrowers must intend to utilize the property for whatever purpose indicated to the lender.(d) Borrower must pay back the loan if and when the property is sold. The difference between the mortgageand the deed of trust is that during foreclosure, the lender must access the court system and the sheriff's office.NONRECURRINGCLOSINGCOSTS:One time costs charged in connection with the loan.NOTE: A signed instrument acknowledging a debt and a promise to repay per the terms outlined. The noterepresents the borrowers promise/guarantee to pay back the entire loan, which is secured by a mortgage ontheir property. The important terms contained in the note, which must be reviewed with the borrower, are interest rate, term of loan, monthly mortgage payment, type of loan (fixed rate, arm, etc.), date of the loan andpersonal guarantors (those responsible for the loans repayment). The note must be signed by all guarantorsNOTICE OF RIGHT TO CANCEL: The borrower has a legal right under federal law to cancel the transactionwithin three business days from the day they sign the documents, the day they receive the Truth in Lendingdisclosure or the day they receive the copy of the notice of