Marcy, The Baby, and the FHA Signing
Marcy was a little big traumatized after her last signing, but she wouldn’t be able to face her neighbor Patricia if she quit now. So, she decided to just do it. She waited patiently by the phone as she watched her toddler. Her husband often worked nights, so she was all by herself with the exception of her screaming child.
And then the phone rang. It was Nicole from Hawaii Title. They needed a loan signed that night and couldn’t find anyone.
NICOLE: Hi, this is Nicole from Hawaii Title.
MARCY: Aloha. (child screaming in the background, radio playing loudly too)
NICOLE: I hope that’s not a dissatisfied customer.
MARCY: No, he’s a little cranky tonight. I just told him a bedtime story called Snow White and the Seven Lenders. Don’t get me started on Grumpy.
NICOLE: Oh, is this the one with the wicked Escrow officer who gives her a poisoned prepayment penalty?
MARCY: No, that part was too scary.
NICOLE: Well, we have an FHA loan we need…
TODDLER: Wahhhhh! Wahhhh!
NICOLE: Is something wrong?
MARCY: Oh, well Chuckie doesn’t like the word FHA. You see, in the story, the evil Escrow Officer did mostly FHA loans.
TODDLER: Wahhhh! Wahhh!
NICOLE: Okay. No problem, I’ll call it a Federal HA loan. I know it can’t be easy raising a young child. But, it’s not easy for callers to endure any type of distractions. I noticed that not only is your toddler screaming, but there is also a radio playing in the background. Putting aside how difficult to hear you over this noise, it is also considered very unprofessional to have any type of background noise on a professional call. I’m sorry to give you a lecture on this, but I think you sound serious about this business and you need to know. Many companies just won’t hire you if they sense any unprofessional behavior on your part be it oral communication, if your notes section has spelling mistakes on 123notary, or mistakes on loan documents.
MARCY: Oh, I had no idea. But, that makes sense, now that you tell me. I’m just so used to Chuckie, that I don’t realize that other people might not be so immune to his antics. I’ll put the baby in the other room. And my husband will be back soon, so I can go out to do a signing the minute he returns.
NICOLE: Okay. Just keep in mind that FHA… oops, I meant to say Federal HA loans, take considerably longer to sign than straight Refinances. But, I will be on the other end of the line the whole time in case you have questions. And we require fax backs.
MARCY: Okay, 123notary told me that companies that require fax backs do so to ensure that the loan is correctly signed when a beginner is working for them. This makes sense as I am a beginner — a very enthusiastic beginner. So, I won’t complain about fax backs like the other notaries!
NICOLE: That’s what I like to hear.
MARCY: Bring it on!!!! I’m ready for your FHA
NICOLE: Wahhhh… Just kidding.
Point (2) The Note
The Note (also called ‘the agreement’ by some companies) is the basic contract between the borrower and the Lender; it includes the basic terms, conditions, and information about the loan being signed.
The Note includes:
(1) The Rate
(2) The Prepayment Terms (these are usually explained in two paragraphs on the first or second page)
(3) The Payment Amount of Principal and Interest (this doesn’t include taxes and insurance).
(4) The day that monthly payments are due.
(5) Penalties for late payment
(6) The amount of the loan
The Note also specifies that it is secured by a ‘security instrument.’ (This will be discussed in the next section, specifies where to make payments to — many other kinds of information are also in the note. It is simplest to understand the note as merely a list of agreements, as previously mentioned. Adjustable Rate Notes. This document is a note with information about what the adjustable rate is based on and how it can fluctuate.
Please note that the best place to look for information about the prepayment terms are in the Note or a Prepayment Rider if there is one, and NOT on other documents as other documents do not have thorough information about this topic. Please also note that The Note is not normally a notarized document.
You might also like:
30 Point Course Table of Contents
Point (3-4) The RTC & TIL
The Mortgage & The Note