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July 17, 2015

Honey, You Can Kiss my App!

Filed under: Best Humorous Posts,Humorous Posts,Popular on Linked In — Tags: , , , , — admin @ 9:48 am

GPS: You will be approaching the Deed of Trust in 3 seconds… You have arrived at your destination.

MARCY: Well, I’m a new notary, so what do I do now?

GPS: What do you think is next, do you want me to tell you to wash your hair and then repeat?

MARCY: I’m sorry, could you repeat that?

GPS: Never mind. Have the borrower initial all of the pages of the Deed of Trust in the small horizontal line in the bottom corner.

MARCY: But, this has 15 pages!

GPS: You heard me girl.

MARCY: Okay, we are going to sign the Note now, and then these other documents…. Okay, we finished signing the HUD-1.

GPS: You go girl! Okay, now let’s take a look at that Flood Affidavit.

MARCY: Gee, the app says you can explain this to me in Chinese, but I don’t speak Chinese. Hmm, I wonder what happens if.

GPS: Qing ni zai qian ge ming zai zui hou de ye.

MARCY: Yet another thing that was made in China. I better switch it back to Chantelle.

GPS: Do you realize what you just did?

MARCY: Yeah, I switched you to Li-Wen for 30 seconds. I didn’t know what that button did.

GPS: Well, you should be more careful. That app doesn’t exactly steer you towards the nearest Chinese restaurant, and if it did, it would steer you to the type of restaurants with dishes that the owner says, “you no like.”

MARCY: I think you’re right. I went to one of those restaurants. I ordered something called “zhu chang” and the owner said, “You no like.” I asked what it was and he said, “Pig intestine with ox brain.” And I said, you’re right, I no like! And then he said, “you think you no like? how you think ox felt?” And then I said, “You’ve got a point. Let’s stick to kung pao!”

GPS: Yeah, and if you had kept on with Li-Wen, should wouldn’t direct you to the fork in the road. She would have directed you to the chopsticks in the road. Then, you’d really be in trouble!

MARCY: Yeah, because I don’t know how to use chopsticks.

GPS: Yeah, but Li-Wen could probably hook you up with some training sticks.

SIGNER: Less talk, more signing please.

GPS: I saw that in a fortune cookie once.

SIGNER: Gee, Chantelle, you do seem to know a lot about China for a GPS. Have you been to China?

GPS: Honey, I was born in China. My parents were nine year old kids who didn’t get decent child labor laws for Christmas.

SIGNER: So, you grew up in Peking, not Pittsburg.

MARCY: Gee, I never thought of you as Chinese.

GPS: Well, think again! I grew up in the basement of a electronics chop shop in An-Hui province. I got plenty of love, but my parents were mad at me for not being a boy.

MARCY: Well, couldn’t they have made you into a boy?

GPS: Don’t think they didn’t try! They didn’t have the voice overs to do that, so they were stuck with what they had. And they had to keep me due to the one-child policy.

SIGNER: Well you seem very polite.

GPS: I had to be. My parents said that if I acted up, they would export me.

MARCY: It’s fun talking to you, but honestly, the way you explain the documents isn’t thorough enough. The app literature claimed that you would be a lot more detailed in your instructions.

GPS: Well if you don’t like it, then you can kiss my app!

MARCY: Well, I’m new at this, so I need a little more mentoring.

GPS: Fine. Have it your way. I’m auto-switching you to Charles. You’ll be sorry now.

CHARLES: (British Accent) Hello, this is Charles.

MARCY: Oh, you sound Brittish. So, what’s the next step in this signing?

CHARLES: Well, if you were Queen Latifah, I would courtsey.

MARCY: No, the signing. We just signed the Flood Disclosure.

CHARLES: Well, just sign the other documents and be done with it.

MARCY: Don’t you understand loan signing?

CHARLES: Well, there’s nothing to know actually. You just sign as your name is printed, and that is that!

SIGNER: I don’t know why Marcy opened her big mouth, but we were much better off with Chantel.

CHARLES: This was the way I was programmed.

MARCY: Well, we need more than this, and the app we bought was guaranteed to be thorough in its descriptions of documents.

CHARLES: Well if that’s the way you feel then Cherio. I’m switching you to Li-Wen.

LI-WEN: Ni hao, wo jiao li-wen. Wo zen-me ke-yi bang zhu ni?

MARCY: Do you speak English?

LI-WEN: Sorry, no English.

MARCY: The app said that the voices would be in English.

LI-WEN: Not all of them. 1.3 billion people speak Chinese these day.

MARCY: Well this is not going to work.

LI-WEN: If you no like, then — Honey, you can kiss my app!

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February 22, 2015

Point (2) The Note; Story: Background Noise

Filed under: (2) Technical and Legal — Tags: , — admin @ 6:14 am

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.

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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.

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You might also like:

30 Point Course Table of Contents
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Point (3-4) The RTC & TIL
http://blog.123notary.com/?p=14291

The Mortgage & The Note
http://blog.123notary.com/?p=13203

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January 27, 2015

The Mortgage & The Note

Filed under: (4) Documents,Ken Edelstein — Tags: , , — admin @ 11:41 am

The Mortgage and The Note
These two documents formulate the essence of the home purchase or refinance. The vast number of related documents provide essential and legal information. However, the Note and the Mortgage are really the “action” documents. In their most basic functionality: the note specifies the terms of the loan, the mortgage provides collateral against a default of the Note.

Curiously, the Note typically begins with “In return for a loan that I have received, I promise to pay $XXX,XXX.XX”, but rarely is the Note notarized. It is often initialed on each page by the borrower(s) that are signing the final page. There should be an agreement with the 1003, the Loan Application as to who is technically a borrower. Non-obligors who may be “on title” never sign the note. As the definitive definition of the loan; interest rate and payment terms are generally the second and third items on the first page. These are the items of greatest interest.

Also essential, but rarely initially reviewed, is the Right to Prepay; and what will happen if the borrower fails to pay according to the terms of the Note. Typically, if more than one person signs the Note, each bears the full responsibility for payment. The Note is a negotiable instrument, similar to cash or a bond. They are frequently sold by the initial lender.

Almost all variations of the note include the words “Sign Original Only” on the signature page. As a negotiable instrument is being created, multiple copies of the Note for the same obligation could lead to fraud, confusion, and the borrower(s) being asked to pay each Note! When asked to execute multiple copies of the same Note; shrewd borrowers are careful to add wording to the effect that the duplicate(s) are “file copy” and “not negotiable” next to their signature(s).

The Mortgage, often referred to as the Deed Of Trust, is generally of much greater length compared to the Note. A key provision of the Note grants the Mortgage enforceability. The Note references the related Mortgage: “In addition to the protections given to the Note Holder under this Note, a Mortgage, Deed of Trust … dated the same date as this Note … protects the Note Holder if I do not keep the promises made in this Note”.

Think of the Mortgage as the “enforcement arm” of the Note. The Mortgage contains, in about fifteen pages; the procedures to, typically; take back the property. For notaries the Mortgage often contains a “built in” problem. On the first page of the Mortgage the borrower is “supposed” to be named. However, in lieu of their legal name the “vesting” name often appears. This is not a problem on the first page. But, it does get to be a problem on the last page. For it is there that the computer often uses the “vesting” name in the notary section.

For technical reasons, on the Mortgage vesting often includes “status” terminology such as “husband and wife” or “a single woman” or “a married man” – but **ONLY** the name is permitted in the notary section. Thus, “before me appeared John B Doe a single man” is not permitted per NY State notary laws. I am required to redact (thin line through & my initials) the “a single man” part from the pre-entered value following “before me personally appeared”. Care should also be taken to have John B Doe initial JBD not just JD if his middle initial is on the signature line of the Mortgage. I promise to pay, and, what if I don’t; are the heart of the deal.

Most fail to note (no pun) that there is language in the NOTE that incorporates the Mortgage as “part of the note”

A little mentioned aspect in the “fine print” but O so important.

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You might also like:

Ken’s comprehensive guide to Deeds — Good Deed Bad Deed
http://blog.123notary.com/?p=16285

The Deed of Trust
http://blog.123notary.com/?tag=deed-of-trust

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