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| Signing Instructions and Duties | Frequently asked questions | Helpful Hints |
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The following information is supplied as an aid for performing a
witness signing. If you should have any questions that are not
covered in this document, please feel free to
contact our office.
Professionalism and promptness are expected when representing
cfacts at any closing. Although a suit is generally not
required, there may be occasions when it would be preferred
(depending upon the customer, and the location of the signing).
Casual business attire is required at all other times.
When you receive the loan package we suggest that you contact
the customer to confirm your closing, and go over the loan particulars
such as the amount, rate, payoffs, etc. This will help to eliminate
any surprises when meeting with the customer, and may save you some
valuable time. If the customer has any objections to the figures
let them know that there may be a delay in the closing, and you will
notify our office. We will work out the details needed to complete
the closing. We will make every attempt to accomplish this in a
timely manner so that the closing can take place as initially scheduled.
SIGNING AND THE DOCUMENTS
When you meet with the customer you must be sure to see some form of photo ID, such as a driver's license. If you are not able to make a copy of the identification you will need to execute an identity affidavit. Verify the customer's signature on the loan documents. If the borrower does not have a valid photo ID, two witnesses must verify that the borrower is who they say they are. The witnesses must have a valid photo ID. Depending on the notary laws in your state, the witnesses may need to sign your notary book, and you must state that they are the witnesses for the borrower. You must be sure that the people sitting in front of you are in fact the people required to sign the documents.
DATES AND SIGNATURES:-
Never have the documents signed prior to the date on the documents.
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Have the document signed exactly as the customer's names are typed on the loan documents. If documents are signed incorrectly you will need to have them corrected at your own expense.
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If the customer informs you that a name on the documents is wrong, such as, has a middle initial when the customer doesn't sign with a middle initial, explain that the names on the documents are the way they hold title. In all circumstances, the customer's signature on the mortgage must be identical to its spelling on the mortgage.
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Some lenders' mortgage or deed of trust will have initial lines at the bottom of each page. It may be marked "initials____", or it may just have the dashes, be sure the customers initial each page.
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Witnessing the documents, your state may not require the mortgage or deed of trust to be witnessed. A good rule of thumb, if there is a line next to the customer's signature, witness their signature. Even though your state may not require it to be witnessed, the lender may. In certain states the notary cannot act as witness. Please be sure an appropriate witness will attend when required.
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Errors may occur when the documents are prepared, they can be a spelling error, or a typographical error. Be sure to contact our office first before you make any corrections. If the closing is taking place after office hours, have the customer correct any errors on the documents by printing the correction neatly by the error and having the customers initial it.
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If the documents are not dated with the date of closing, contact us immediately. New documents may need to be drawn.
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If you make an error in the acknowledgement area, simply draw a single line through the error and rewrite the word. If your notary seal smudges, you will need to restamp the acknowledgement area. Make sure your complete stamp is clear and dark. Also, initial any changes.
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The customer may ask some questions, and you should have some of the answers. Answer their questions as best you can, but remember never give advice. Always refer them to the lender. The following are some questions you may be asked.
| Q. | What is the ANNUAL PERCENTAGE RATE? |
| A. |
The Annual Percentage Rate (APR) is the cost of your credit expressed as an annual rate. Because you may be paying loan discount "points" and other "prepaid" finance charges at closing, the APR disclosed is often higher then the interest rate on your loan. |
| Q. | Why is the ANNUAL PERCENTAGE RATE different from the interest rate for which I applied? |
| A. |
The APR is computed from the Amount Financed and based on what your proposed payments will be on the actual loan amount credited to you at settlement. |
| Q. | What is the FINANCE CHARGE? |
| A. |
The Finance Charge is the cost of credit expressed in dollars. It is the total amount of interest calculated at the interest rate over the life of the loan, plus Prepaid Finance Charges and the total amount of any required mortgage insurance charged over the life of the loan. |
| Q. | What is the AMOUNT FINANCED? |
| A. |
The Amount Financed is the loan amount applied for, minus the Prepaid Finance Charges. Prepaid Finance Charges includes items paid at or before settlement, such as loan origination, commitment or discount fees ("points"), adjusted interest, and initial mortgage insurance premium. The Amount Financed is lower than the amount you applied for because it represents a NET figure. |
| Q. | Why do I have to sign a W-9 form? |
| A. |
This form certifies the customer's social security number to ensure that the lender reports any interest paid on the loan to the proper taxing authorities. |
| Q. | What is the HUD? |
| A. |
A HUD or settlement statement discloses all the costs associated with the loan. It includes all payments made to creditors, to the bank, to the title company, the recorder of deeds and to the customer. It will also reflect if the customer is to have a check for any additional funds needed for the loan. |
| Q. | What is the purpose of a Loss Payable Endorsement ? |
| A. |
A loss payable endorsement or homeowners insurance policy endorsement allows the insurance company to add anyone with an interest in or a lien against the property to the policy. The lender will now have a lien on the property and will be listed on the customer's insurance policy. |
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THE CUSTOMER WANTS THE DOCUMENTS:
The customer is supplied with a copy of the loan documents.
Explain to the customer that they have a three (3) day
recission period in which they can cancel. Under no
circumstances does the customer ever receive the original
loan documents.
THE CUSTOMER WANTS TO READ EVERY DOCUMENT:
You would be there for hours, that is why it is a good idea
to give a brief description of each document before asking
the customer to sign. If that doesn't work, tactfully explain
to the customer that they will be receiving a complete copy of
all of the documents, and have three (3) days in which to cancel
the loan. During that time they could call the lender and
speak to them directly.
THE CUSTOMER WON'T SIGN ONE OF THE DOCUMENTS:
If the customer refuses to sign one of the documents contact
our office immediately. We may be able to help overcome the
customer's concerns. If it is after office hours have the customer
write and sign a note explaining why they would not sign,
and attach it to the document. This will ensure that when
cfacts receives the documents we know the customer
refused, and it was not just overlooked.
THE CUSTOMER WANTS TO KNOW WHEN THEY WILL GET THEIR MONEY:
Explain that you are not involved in the processing of the loan,
and they would need to contact our office, or the lender.
Never give advice, if the customer has any questions
regarding any of the loan particulars they will need to contact
the lender.
THE CUSTOMER WAS A "NO SHOW", OR CANCELED THE APPOINTMENT:
If for any reason the closing doesn't take the place when
scheduled, keep the documents and contact our office immediately.
New documents and arrangements may be required.
THREE (3) DAY RECISSION:
This is applicable only on certain loans. The recission period
is a waiting period for the customer to receive their money.
In the three (3) days the customer may wish to change their
mind, and may cancel the loan. When counting the three (3)
day recission every day is counted except Sundays and legal
holidays. An easy way to remember this is any day the mail
gets delivered should be counted. Start by counting the day
after the documents are signed as the first day. The recission
period runs for three (3) days and ends midnight of the third
day. The following is a list of the legal holidays.
| NEW YEAR'S DAY | January 1 |
| MARTIN LUTHER KING'S BIRTHDAY | 3rd Monday of January |
| WASHINGTON'S BIRTHDAY | 3rd Monday in February |
| MEMORIAL DAY | Last Monday in May |
| INDEPENDENCE DAY | July 4th |
| LABOR DAY | 1st Monday in September |
| COLUMBUS DAY | 2nd Monday in October |
| VETERAN'S DAY | November 11th |
| THANKSGIVING | 4th Thursday in November |
| CHRISTMAS | December 25th |
REVIEWING THE LOAN DOCUMENTS:
Before leaving the customer's home review each document one
more time for accuracy, signatures, dates, and initials.
Double check your notary work, make sure you've properly
completed the acknowledgements, your stamp is clear and
dark, and if your state requires a seal, the complete seal
is on the document, not over the words, and is completely raised.
If there are any errors due to the negligence of the notary, you will be required to go out a second time, for free, to correct the error.