How the new TILA-RESPA changes effect notaries

A major change in the mortgage lending industry will take effect in August of 2015. The Consumer Financial Protection Bureau (CFBP)amended requirements for the disclosures to borrowers. Lenders in the past have been required to provide disclosures to the borrowers when the loan application is submitted for new home purchases and re-finances. The borrower receives a Good Faith Estimate (GFE) and a Truth and Lending Disclosure Statement (TIL). When the closing takes place the borrower then receives a HUD-1 Settlement Statement (HUD)and a final TIL. As of 8-1-2015 those requirements are changing now when a loan application is submitted the borrower will receive the new Loan Estimate (3 pages) it replaces the GFE and the TIL. The new Loan Estimate must be sent to the borrowers within 3 days of submitting the loan application. At closing the new Closing Disclosure (CD) (5 pages) replaces the HUD-1 settlement statement and the final TIL and it must be delivered to the borrower 3 days prior to the closing appointment. That is great news for Notary Signing Agents, we should get the loan packages a few days before closing instead of at the last minute enabling us to schedule more closings. Also we will still see the old HUD and TIL forms for Home Equity Lines of Credit, Reverse Mortgages, Mobile Home Loans and any loans that have originated prior to 8-1-2015. Hopefully this will be a smooth transition for all of us. Sincerely, Lisa Scanlon, CSA

Scanlon Signing Services new location

Scanlon Signing Services now has a new location. As of 6-1-14 we now service Lee and Charlotte counties in Florida. You can still expect to get our accurate and professional service. We want your borrowers to have a great closing experience. I still personally perform all loan closings and have 10 years of signing experience. I am always on time and projecting that professional image that your customers expect. Please call on us for all of your loan closings in Lee and Charlotte counties in Florida. Our new office address is 7000 Marna lane North fort myers, fl 33917 Sincerely, Lisa Scanlon, CSA www.scanlonsigningservices.com 941-447-7130

New Standards for Notaries

Starting in 204 there will be a new set of standards for notaries that perform loan closings. The government is increasing its scrutiny of the mortgage industry and as a result they have created a set of standards called the Certified Signing Specialist Standards. A special committee called the Signing Professionals Workgroup or (SPW) which includes executives from major banks and title companies have set these standards. So far the new set of standards includes getting a yearly background check, errors and ommssions insurance of 25000.00 or more, passing an annual exam and scoring at least 80%, and following a standardized script. In the past signing agents have had to meet different requirements for each company they work for. The new set of standards should qualify signing agents to work for any company without having to get multiple background checks for each company. Sometime in 2014 the SPW will create the exam and choose who is able to offer the Certified Signing Specialist designation program. Lisa Scanlon, CSA

New CA thumbprint law

A new law recently enacted by Governor Jerry Brown will now require all California notaries to collect a thumbprint for any persons needing a notarization. This new law becomes effective on January 1, 2013. It also prohibits Notaries from performing a proof of execution by subscribing witness on any document that effects real property. The only other state at this time requiring a thumbprint is Illinois. But I am sure other states will soon follow. I strongly recommend obtaining thumbprints for all notarization's no matter what your state laws are at this time. The added security has proven to deter fraud and assist law enforcement in identifying suspects. Lisa Scanlon, CSA 941-447-7130 www.scanlonsigningservices.com

Mechanics liens being challenged

Two states (Rhode Island and Connecticut) recently invalidated mechanics liens against commercial properties because they were improperly notarized. An Acknowledgement was used instead of a Jurat. A Jurat requires the signer to give an oath or affirmation attesting to the truthfulness of the document. Notarizations are essential for mechanics lien statements across the United States but whether a mechanics lien does or does not need notarization varies from state to state. We must keep up with state laws and be aware of when an Acknowledgement is needed or a Jurat. Sincerely, Lisa Scanlon, CSA 941-447-7130 www.scanlonsigningservices.com

Federal Agency seeking comments on new mortgage proposals

The Consumer Financial Protection Bureau is seeking comments on a set of proposed rules designed to protect consumers from "robo-signing" and the foreclosures it caused. The federal agency states these new rules are a result of the foreclosure crisis and will effect how mortgage servicers do business. The proposals would create new rules under the Real Estate Settlement Procedures Act (RESPA) and the Truth and Lending Act (TILA) that requires extensive record keeping and mandates to offer consumers alternatives to foreclosure. Members of the public have until October 9th 2012 to comment on the rules. Lisa Scanlon, CSA 941-447-7130 www.scanlonsigningservices.com

FHA guidelines for Paying closing costs

These days many of the FHA Borrowers that I work with require Sellers to pay most of their Closing Costs, so I need to be on top of what the FHA Guideline On Seller Paid Closing Costs are. The FHA Guideline On Seller Paid Closing Costs are very specific, but could cause some last minute surprises if not explained correctly, and understood by the Borrower. FHA does not require that a Buyer put any of his or her own money towards Downpayment and/or Closing Cost. All of the money for Downpayment and Closing Costs can come from an acceptable gift source such as a: Family member Employer Non Profit State Bonded Program like CHFA in Connecticut FHA will not allow a Seller to contribute ANY money towards Downpayment, but they will allow the Seller to contribute up to 6% of the Sales Price towards the Buyers Closing Costs. This sounds good and it is, but I rarely see the Seller actually pay the Buyers Closing Costs. In reality what happens is the Seller raises the agreed upon Selling Price by the amount of the Closing Costs that they will be contributing. This means that even though the Buyer can receive up to 6% towards Closing Costs, they should not request any more than the actual amount of Closing Costs that the Seller will be allowed to pay at the Closing. If the Buyer asks for more money than the Seller will be allowed to contribute towards Closing Cost, the Seller gets to keep the difference, and the Buyer ends up paying more for the house than they needed to. This means that before a Buyer or their Realtor asks for Seller Paid Closing Costs, they need to talk to their Loan Originator, and have him or her give them a very close estimate of what the Total Closing Cost will actually be. In figuring the Estimated Closing Costs, the Loan Originator will need to take into account the Closing Cost that FHA will not allow the Seller to pay, and subtract them from the Total Closing Cost Estimate. The Closing Costs the will need to be deducted from the Total Closing Costs are any Closing Costs that are paid before the Closing. Those will include any fees paid to the Lender or other vendors prior to the Closing. Possible items that maybe required to be paid before of the Closing are: Appraisal Fee Application Fee Condo Questionnaire Homeowners Insurance There are other fees that could possibly be required to be paid before the Closing, but these are the most common ones. However, even though I have included Homeowners Insurance in the list above, there is away to include them into the costs that the Seller will contribute at the Closing. All Lenders will require that the Borrower obtain an insurance binder before the Closing, but they do not require that the premium be paid prior to the Closing as long as a check will be sent to the insurance company at the time of the Closing. However, some insurance companies will not issue the insurance binder without a payment, so what I advise my Borrowers to do in that case is to just pay them one month premium, and the other 11 months paid at the Closing. That way they can maximize the funds that that they can receive from the Seller, and reduce their out of pocket cost. I have heard of angry Buyers that did not find out until the Closing that they could not be reimbursed for the items that they paid before the Closing. That is not the type of surprise that anyone wants at the last minute. I make sure that my Borrowers understand this when I am Pre-Qualifying them, when I am doing the Mortgage Application with them, and after the loan is approved and they are now going to shop for Homeowners Insurance. I want them to take advantage of ALL the funds that the Seller has agreed to contribute, and I don't want an agree phone call from my Borrowers after the Closing. This is something that can not be explained enough, and should be reinforced at every appropriate opportunity. FHA Guideline On Seller Paid Closing Costs are very clear, and need to be followed, because FHA does not provide any flexibility when it comes to this issue. Lisa Scanlon, CSA

Huge FHA Announcement

Starting June 11, 2012 FHA will lower its Upfront Mortgage Insurance Premium (UFMIP) for certain FHA borrowers with a drop to just .01%. The past rate of PMI on FHA loans made the streamline almost impossible due to the lack of benefit to the homeowner. Borrowers will now be able to get into a streamline FHA loan that they were previously unable to get. To qualify borrower must: *be current on your existing FHA mortgage. *your current FHA mortgage must have been endorsed by 5-31-09 Also employment and income verification is not needed and no credit report or appraisal is required. These changes took effect on 6-11-12. Sincerely, Lisa Scanlon, CSA 941-447-7130 www.scanlonsigningservices.com

New RESPA rules may simplify mortgage documents

The Consumer Finance Protection Bureau has proposed revisions to the financial disclosure forms that are included in loan packages in order to simplify the process. The redesigned Good Faith Estimate and Closing Disclosure forms attempt to make it easier for the borrowers to understand there loan terms. The two forms required currently in all loan packages are the Truth and Lending Disclosure Statement (TIL) and the Real Estate Settlement Procedures Act (RESPA), currently contain simmular information but often times are confusing for the borrowers. By using plain language and reducing redundancy, these forms should make the loan process and signing much easier to understand. The CFPB is seeking public comments regarding these proposed revisions until November 6, 2012. Sincerely, Lisa Scanlon, CSA 941-447-7130 www.scanlonsigningservices.com

The National Mortgage Settlement

The recent $25 billion National Mortgage Settlement is likely to have a significant impact on the entire mortgage industry as well as law firms, document processing companies and notaries. For companies, the terms target the kinds of policies and practices that created the "robo-signing" assembly lines. For notaries and there supervisors, the settlement terms focus on the need to comply with state notary laws and obtain adequate training to carry out there duties. In October 2010, a coalition of state attorneys general and federal agencies launched an investigation of the financial industry following revelations the "robo-signing" affidavits were being used in foreclosure proceedings around the country. In february, five major banks reached an agreement with state and federal officials not only to pay $25 billion in relief to homeowners who were improperly foreclosed on but also to change the way they deal with mortgage documents. The terms of the settlement require banks to provide state-specific training for all empolyees who regularly prepare or execute forecloser-related documents. The banks also are required to keep records of all forclosure-related notarizations performed on there behalf. Banks who violate the reform terms can face stiff penalties (up to $5 million for repeat offenders) In the end this means we must not ignore notarial laws. Signers must personally appear before the notary with proper identification and all notarizations must adhere to state laws. Lisa Scanlon, CSA www.scanlonsigningservices.com 941-447-7130

Feds push for E-Records

One of the biggest challenges to the widespread use of electronic notarizations is the slow pace of government agencies adopting digital recordkeeping technologies.But that may soon change as the federal goverment speeds up its plan to use e-records to replace the mountains of papers. The Obama Administration recently issued a memo directing federal agencies to start using electronic technologies to replace paper options. They must submit a plan outlining there efforts to adopt digital recordkeeping technologies. As more agencies embrace electronic recording and documents, the closer we are to electronic notarizations.

More counties utilizing electronic recording.

The number of counties capable of recording documents electronically is growing across the Unitied States. In the past five years these numbers have tripled. Electronically recording documents helps speed up the recording process and is more accurate and secure. This also brings us closer to the growth and adoption of electronic notarization. The benefits of E-Recording include an improvement in data quality, a reduction in turn around time for processing documents, and a significant savings when compared to the manual process. It is beneficial to companies that process a high volume of documentation, such as title companies, banks, law firms and helps pave the way for eNotarization.

VA loan fees

Some last minute confusion regarding legislative changes to VA loan fees has some lenders and prospective homeowners scrambling for clarity with home closings on the line. But the Department of Veterans Affairs sought to calm fears by pledging to cover additional costs while waiting for President Obama to act on a bill that would keep VA funding fees in place thru mid-November.

The fees are mandatory charges applied to every VA purchase and re-finance loan. They help keep the program running and help ensure service members can continue to purchase a home with no money down or private mortgage insurance. The bill now is awaiting the presidents signature and would stave off the rate drop until Nov. 17.

Government officials expect the VA funding fee issue to be resolved within days. I will keep you updated on this issue.

Sincerely,

Lisa Scanlon, CSA
941-447-7130
www.scanlonsigningservices.comk

Florida's New Power of Attorney Act

Last week Florida enacted a new "Power of Attorney Act" in order to protect its elderly population from exploitation. This new act states a power of attorney must be signed by the principal and two subscribing witnesses and be acknowledged by the principal before a notary public.

Floridians are being warned that if they don't comply with the new laws there power of attorney will be invalid. Power of attorney's that were entered prior to 10-1-11 will still be valid if they followed the current laws that were in place at that time. Individuals should update there current power of attorney in order to be up to date with the new regulations to avoid any potential problems in the future.

Sincerely,
Lisa Scanlon, CSA
941-447-7130
www.scanlonsigningservices.com

NFIP may get temporary extension

The National flood Insurance Program (NFIP) is expiring on September 30,2011 unless congress approves a temporary extension. If approved it would extend program until November 18,2011.

The NFIP provides low cost flood insurance to home owners whose properties are located in an area with special flood hazards. Also the NFIP provides disaster relief funds to states effected by hurricane Irene.

If this program expires new home loan applicants requiring flood insurance would be held up pending extension of the program. Other bills floating around congress seek to extend the program for five more years. The NFIP provides flood insurance to 5.6 million homeowners.

Sincerely,
Lisa Scanlon, CSA
941-447-7130
www.scanlonsigningservices.com

Government is looking into REO properties

The Federal Housing Finance Agency (FHFA), the US Department of Treasury and the Department of Housing and Urban Development (HUD) have issued a Request for Information (RFI) on the real estate owned (REO) properties held by Fannie Mae, Freddie Mac, and FHA. This RFI is seeking to address the current and future inventory of REO properties and encourages private investment in the housing market, and reducing the average loan loss. RFI also requests that we address property repair needs, assist in neighborhood and home price stabilization, and help current renters to become home owners (lease to own).

Millions of families have seen there home values plummet due to foreclosures and abandoned properties in there neighborhood. Encouraging private investment in Reo properties may help stabilize neighborhoods and home values.

Higher FHA down payments

The House Financial Services Committee is proposing an increase in FHA down payments. The current down payment for an FHA mortgage is 3.5% and they want to increase this to 5%. The FHA Rural Regulatory Improvement Act of 2011 would also prevent borrowers from rolling the closing costs into the loan. This would severely limit first time home buyers.

Representatives of the Mortgage Bankers Assoc (MBA), National Assoc of Realtors(NAR), and the National Assoc of Home Builders(NAHB) all have testified opposing this new legislation. This draft legislation does not have a bill number yet but is presently being reviewed and debated. I will keep you updated on any new findings.

Sincerely,

Lisa Scanlon, CSA
941-447-7130
www.scanlonsigningservices.com

Senators fight to restore counseling funding

Senators fight to restore the $88 million in funding for the housing counseling programs that were cut from the budget. This cut also includes $9 million just for reverse mortgage funding.

Counseling agencies may have to increase the cost for counseling servicies and limit the number of counselors available.

Little is known about how this program impacts consumers. But one study did show a large percentage of home owners who received this counseling did not re-default.

Sincerely,
Lisa Scanlon, CSA
941-447-7130
www.scanlonsigningservices.com

Avon products now available

Avon products Now Available
I am pleased to announce that I am an Independent Sales Representative for Avon. I have always liked there products from skin care to make-up, mens to kitchen gadgets, clothes and baby products and we cant forget the shoes.

Its very easy to order you can call me on my cell phone or send me an e-mail to place your order but now we have our own personal website that you can order directly from. Just place order pay with your credit card and your order will be shipped to you anywhere in the U.S. and will arrive within 2-3 days.

So lets get shopping. Here is a link to my webpage. I know you will enjoy these wonderful products.

www.Youravon.com/lscanlon

Sincerely,

Lisa Scanlon
941-447-7130
lisagof@msn.com

Reform is hurting borrowers not helping

While reform was needed for the out of control lending environment, the government is destroying what is left in the fragile housing market with new guidelines that only seem to hurt the consumer.

HUD has announced a new guideline that states if the borrower has officially disputed anything on there credit report they must retract there dispute even if it was an error on the credit report or they will not get a mortgage. Also it takes weeks to get the dispute removed and that can kill the loan process.

On April 1st the Dodd-Frank Financial Reform Bill was passed. This caps the amount loan officers can earn per loan transaction. But this hurts consumers because loan officers cant help cover closing costs for borrowers or reduce there interest rate.

These changes do not help the consumer, it just makes it harder to get a mortgage and creates more out of pocket expense.

Sincerely,
Lisa Scanlon, CSA
941-447-7130
www.scanlonsigningservices.com