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May 15, 2013

Cross-out happy; Not a good idea

Some lenders allow cross outs. Others will fire you after the first cross out. Some signing agent courses recommend that you cross things out without a second thought. Others don’t. Even our loan signing course teaches you to cross out wrong dates in the right to cancel document. But, if you work for Provident or other lenders who don’t allow cross outs — you’re fired! Gulp?

Don’t worry, just read the instructions. Many loans have an instructions sheet. If there is no letter of instructions, then ask before you cross, okay? Don’t assume that you can just cross anything out. First of all, remember the golden rule of cross outs. Don’t cross out unless: (1) you have permission and (2) it is a last resort.

What about the 1003? The 1003 loan application has endless wrong information. It is my personal belief that the clerks they hire are required to make endless mistakes — otherwise they will be fired on the spot. If they get your social security number right they will be laid off immediately, right? In any case, the 1003 is not binding in the loan, but has to be sent back signed. Borrowers whine endlessly about this carelessly prepared document. What is the solution? Cross out and initial? Hmmm. Not sure…

My take on the 1003 is that you will cost yourself 30 minutes of wasted time if you call your contact person about anything, so don’t call unless you really need to. Otherwise you will never get out of the signing. If the lender allows cross outs, you will not endanger your loan by crossing out in the 1003 or for wrong dates on the right to cancel. If the lender doesn’t allow cross outs, then don’t do it.

Trick question

Q. What is the only document the is in a completed loan package that REQUIRES cross outs?
A. Acknowledgment certificates require the notary to cross out the his/her/their, etc.

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3 Comments »

  1. One problem with the acknowledgement cross outs. They require the notary to determine the gender of the person being notarized. It’s not always obvious. Nor is a statement from the applicant sufficient. Only a medical doctor is qualified to determine the gender of a person, and that probably requires an examination. Something I certainly would not do, nor am I qualified as a physician.

    Comment by Kenneth A Edelstein — May 20, 2013 @ 12:26 am

  2. Kenneth, in NC the gender is on the driver’s license.

    Comment by MissV — May 25, 2013 @ 1:11 am

  3. Unless there is a mistake in the acknowledgment or the RTC I never do cross outs. If the borrower is obstinate about changing something on the other documents, then I insist that they do it themselves and initial any changes. Usually I tell them that there is a correction agreement for them to sign and to call their loan processor and demand that he/she change the document before the end of the recission period.

    Comment by Paul — May 25, 2013 @ 2:25 am

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