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Dannotary
California
265 Posts |
 Posted - 11/14/2013 : 10:16:48 PM
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We all go through this with borrowers wanting to make corrections on the 1003. They say they have submitted the corrections and were assured that it would be corrected, and it never is. I just tell them they have documented that they have tried to correct it, it is only a rough mock up of your financial situation when you applied and that balances will have changed since then, you are already qualified. If they still insist, I have them call their agent. Usually no answer. I tell them that if they do make changes it could result in delaying their loan closing for all I know and may result in re- signing.
I don't want them rocking the boat in any way. I have had many loan agents and realtors at signings who tell borrowers they don't have to follow any of my instructions and sit their and bold face give them advice contrary to my instructions as per lender and title co.
I have pissed off a bunch of them by insisting it is done my way. I tell them all they are going to follow my instructions during this signing process because I am the one conducting the closing, not them, and that IT WILL GET DONE HOW I SAY because I intend to get paid for doing it, and I know all the things that can happen that jeopardize my getting paid. So if you want to do it your way, I am leaving now with the papers until they find someone inexperienced who they can manipulate or intimidate. |
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ollie
Florida
30 Posts |
Posted - 02/15/2013 : 08:10:20 AM
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| Part of our introduction at the signing table is to let the signer(s) know that we cannot and will not answer any questions that may be of a legal nature. We insist that they have a separate piece of paper handy to write down all of their questions, so that when they get their loan officer on the phone they can get answers to all of their questions at one time (instead of multiple phone calls). Because we don't know what the correct information is on the 1003, other than bios info, that is a question for the the loan officer. |
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dlove
Missouri
14 Posts |
Posted - 02/13/2013 : 1:38:53 PM
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I try to make light of 1003 mistakes. I tell them it's kind of a moot point because they've already been approved, these things are usually incorrect due to the time elapsed between compilation and formalizing w/ a sig., and move on. I've had folks say "oh! that's not right, can we change it?" My reply is "that's not a good idea, but if you insist, we can call someone and get instructions, or you can speak w/ your L/O later about it". Since the 1003 (usually) appears towards the end of the package,most see the stack getting smaller and want to wrap it up, so usually they will give up on it, and continue signing.
David G. Love |
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Renee
Michigan
549 Posts |
Posted - 02/13/2013 : 12:25:54 PM
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Welcome - and middleVT, the BEST answer anyone can give about anything they are not 1000% certain of being correct OR whether it is even appropriate to offer an answer is:
"I don't know, but I can help you find out. Let's call ..."
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middleVT
Afghanistan
38 Posts |
Posted - 02/13/2013 : 11:21:44 AM
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Thanks to Renee for the education. Now my dilemma is how much of this can I pass along to the signer without overstepping my bounds.
middleVT |
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edelske
New York
815 Posts |
Posted - 02/13/2013 : 11:16:58 AM
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Thanks Renee, that post of yours taught me a lot; bravo!
Kenneth A Edelstein
Mobile Notary, Apostille / Legalization Processing & Fingerprinting
http://www.kenneth-a-edelstein.com |
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Renee
Michigan
549 Posts |
Posted - 02/13/2013 : 09:17:13 AM
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The process of applying & obtaining a loan utilizes fairly standard software throughout the industry – regardless of which proprietary software is used; they are all pretty much the same.
When a new loan application is taken, there are key bits of data that must be input in order for the application to ‘take’ (for lack of a technical term). This initial data entry would include name, type of loan, SS#, property address – the basics. Some of the data needed that isn’t very critical to U/W, but is required by the software – gets a best guess: date property acquired, for example, or original purchase price, borrower’s years of education, etc. It’s rare to see much listed under assets anymore, either. If the U/W doesn’t factor in these bits of data in its decisioning, but the software demands an entry into that field – you get best-guesses. A best-guess on the appraised value will be used until the value is confirmed (via appraisal, or SEV, or whatever measure used). Wages & liabilities will initially be as stated by the applicant.
Once the required data is entered, a credit report is ordered – when it is received, it is by direct import into the lender’s system and automatically populated into the 1003. All of the liabilities shown on the 1003 are a direct reflection of the liabilities on the CR. Creditors that report to the credit bureaus do so quarterly – therefore, the liabilities/balances can be as much as a quarter behind. Typically this isn’t sufficient to affect U/W. It IS however usually the borrower’s first opportunity to actually view the liabilities as they affected the U/W of their loan. ASIDE from balances, if there is a discrepancy shown on the 1003 – it can NOT be ‘corrected’ at closing, it could certainly make/break a loan and needs to be carefully considered.
*FYI – I’m amazed at the number of people who don’t know that when they co-sign for a debt, that debt is on their credit report & included in their liabilities. Almost always if a person says “that’s not my debt” and I ask “did you co-sign for someone?” the answer is “yes”.
As the loan is processed, information is added and/or corrected & adjusted in the 1003. For example, once the appraisal is completed, the value in the 1003 will be updated with that. When documentation comes in for employer & wages, those will be updated, and so on, and so on.
Income as shown on the 1003 is often adjusted – non-taxable income can be grossed-up, and some incomes will be averaged over a 24 mo period of time, for examples. Still, the income as shown is the income used to u/w the loan – and most certainly it should look fairly accurate to the borrower. The employer will almost always be shown exactly as stated on the W2’s – not always the same physical place of employment.
The final 1003 in the closing package is a captured scenario of what was used to underwrite the loan. Any data that would affect an u/w’s decision can NOT be changed by simply ‘correcting’. Common sense comes into play – data about the borrower’s identity (not name variant, but identity – age, ss#, etc) could be critical. Employer (as in “Oh, I don’t work there anymore.”), major wage discrepancies, missing liabilities – all potential loan killers. Misspellings – if the misspelling was already corrected on the loan package, then it really isn’t an issue anymore, it was corrected. If the misspelling flowed through and is STILL incorrect on the loan package, the lender needs to be called (particularly name, and all parts of the property address).
When the borrower signs, he does so directly below a statement that the information is true and correct as of the DATE he puts next to his signature.
This should also help explain why there can be such huge discrepancies between the data on the initial 1003 (often surfaces on brokered loans), and the Final 1003 (which reflects all the confirmed/verified & appropriately calculated data).
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joannieh
Michigan
40 Posts |
Posted - 02/13/2013 : 06:36:29 AM
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The errors you might look for are the same that occured durring the mortgage boom. Loan officers were inflating income, deflating debt, etc. to get borrowers qualified for larger loans. These errors are unlawful. But, they are not the responsibility of the notary.
The area that I get the most complaints about is the mini HUD calculation on the last page. Since it doesn't usually match the HUD borrowers who notice will get concerned and I even had one stop the closing because they didn't understand.
The most important thing to remember is that the application is taken ata point in time. The app is not supposed to be altered after it is taken, except for material changes in fact. Acceptable changes after the taking of the app would be to correct the borrowers income, etc. typos, etc.
Joannie |
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jgdean
North Carolina
21 Posts |
Posted - 02/13/2013 : 05:35:18 AM
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I would say nine out of ten times there are errors or inconsistencies on the 1003. The 1003, like many other documents the signiner has already completed previously doesn't really matter at this stage of the game. Most people are so glad to get this over with, they don't make any fuss either.
Prompt, secure professional signings.
The first to call in North Central North Carolina!
http://www.NCSigningAgent.com |
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edelske
New York
815 Posts |
Posted - 02/12/2013 : 2:12:31 PM
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The 1003 or Loan Application is a historical document; with numbers that should be valid at the time the initial application was made. By the time the printed copy gets to the borrower (often several weeks) many things are no longer correct.
BUT if they WERE correct when the initial loan application was completed by the borrower all is well. I take care to explain that many numbers and credit accounts, etc. have "probably" changed over the passage of time since the initial loan application was hand written.
Chances are there is NO problem - just a lack of understanding.
Kenneth A Edelstein
Mobile Notary, Apostille / Legalization Processing & Fingerprinting
http://www.kenneth-a-edelstein.com |
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LindaH
Florida
1754 Posts |
Posted - 02/11/2013 : 4:18:43 PM
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Notify Title/Hiring Party - let them make the determination - this is not a notary/signing agent responsibility - it has to be addressed by title/lender. It may or may not be serious depending on what the error is.
Linda
http://www.columbiacountynotary.webs.com |
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jbelmont
California
3106 Posts |
Posted - 02/11/2013 : 1:31:14 PM
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What do you do if there is an error on the 1003? Is that serious?
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Error on the 1003
