Notary Signing Agent: Mortgage Loan Document Training

Hey, everybody. Y' all good?

Yes, ma'.

Am. Ralph, how you doing? Hey.

I'm all right.

I'm glad you said hey. I thought I have to come to Houston and lay hands on. You just did, baby.

It has been a lot.

It's gonna be all right.

It has been a lot. So we'll kind of get started on what we talked about yesterday. I don't know how far I'mma go. I might just be on here about 30 minutes tonight because I gotta make sure I get this packet together. My mind is just. I had to open up another bank account. It's just unbelievable. I'm still on the line with Intuit.

Unbelievable, man.

So I'm going to get into it. If I'm not myself, please forgive me, because it's just. I am doing the best I can. Hello. Shoot.

All right, so.

I am going to. Let me think, Let me think.

I want to share my screen on both of these so that y' all can see it on both.

On both.

On both.

What is this? Stream yard or YouTube or wherever and on. On there. And I'm doing this because I think it's important for everybody to know.

So.

All right, so we are going to go to the school group. Yesterday, I told y' all that.

I had put a lot of documents within the school group, right? These are mock closing documents. And that's what we're going to go over today. The way to get to those documents is to go to the school group, the main community page. And then right under this live, you go to files.

Sample closing documents. It's right at the top, but if you want to look further down, we have sample HELOC documents, sample refi documents at the bottom. So, I mean, I recommend just going through all of them because they're. They're real good.

Let me look at this real quick to see if it's what I want it to be.

And so what I'm going to do, I'm going to kind of read because a lot of the things that they give you online. And let me.

These are from a title company. I'll put my resources in the chat just so that you could have them putting it in the chat on my. To my VIP school group, but I'm going to read it. So. Legally binding documents. Here's a sample of the top three most important documents you will review and sign at the settlement table. Find a more detailed explanation of each toward the bottom of the page. So you have the closing disclosure form and the deed of trust. Oh, wow. They downloaded it okay.

All right. So y' all can still see my screen, right?

Yes. All right. This is how the. The closing disclosure form looks. This is a sample and what this document contains. This is. You know, when you go to a closing, this is what everybody is looking for. Be honest with you. They want to know what's the loan amount to verify that. What is my interest rate? What's my principal? And my monthly payment.

Right there. Estimated total monthly payment. That's huge.

Then if. Oop, hold on. Then if you scroll on down. If you gonna let me scroll down, bruh. Let me see if I can hide y' all a little bit.

Okay. So it also talks about the cash to close on this document. If you see at the very bottom, closing cost and then cash to close. And it'll tell you who needs to bring whatever amount to closing. So this is cash to close includes closing costs. See calculating cash to close on page three.

Let me see. Does it go over.

This looks like the closing cost.

Details. And it says cash to close and then from.

So it's normally from seller. If it was two, it would be to borrower. So cash. Then you see this one is checked, right?

So that means cash to the seller. So the seller is getting $463,000.

And this is cash to close from. I don't know why this. Oh, yeah. Okay. So cash to close from the borrower. So they were putting down. You can look. Look up here. This is the sales price.

This is the.

Closing cost paid at closing. But it also has the. He put a $10,000 down payment. This is paid already buyer on behalf of the borrower. So that might be earnest money.

Hold on one second.

These are the origination charges, services borrower did not shop for. So the appraisal fee, credit report, flood cert, tax fee.

Wow. Pest inspection title insurance settlement fee.

With the total loan closing costs of $4,700. Here are other costs, including the taxes and other government fees. The prepaid includes the.

Homeowner'S insurance premium. This is the mortgage insurance premium. If you have a FHA loan, then FHA makes you pay.

MIP up front and then mortgage insurance throughout the. The. Throughout the life of the loan. This is any prepaid interest. So say, for instance, you don't close at the end of the month, you're going to still pay interest on that loan.

So that's why you see all of these closings at the end of the month, because the lender is getting the accrued interest from, you know, the entire month. If you close in the Middle. So say, for instance, you close from the first to 15th. They're getting the money from the first to 15th. If you close at the end of the month, then all you have to pay is just. I mean, it's minuscule. So that's why it's a whole bunch of closings that come up at the end of the month. Initial escrow payment at closing. This is for insurance, property taxes, county taxes, and then these are other fees. Real estate commissions were 15,000 to the listing agent and the. And the selling agent. I mean, the listing agent and the buyer's agent.

Total closing costs, borrower paid. So, yeah, the borrower is bringing 18,600 and something to closing. This is the total closing cost. When you go up to this page. Oh, here it is. Okay. Don't never read out of. Out of line because this says he put a down payment. Because I keep looking at this. Hundred thousand dollars. He put a down payment of a hundred thousand dollars. Ten thousand dollars in earnest money. So that's why the money from the borrower at the bottom down here is $109,018.02. Any questions on this?

Nope.

Okay, let me see if I have any questions on the other thing. Let me bring that down.

All right. You got a minute? I didn't want to interrupt you while you were talking.

Yeah, that's fine. I have a minute.

All right. I threw it up as high as I can throw it up into our fraud system. So it's going to the manager of the fraud system rather than go into somebody who works on the bottom. All the information and pulled all of your other cases with all of your other information that you already gave us all together into one package. And I threw it at them.

Okay. Dear Hartwell, when. When will I hear from you?

So she could throw it up higher for me. So we raised it all the way up the chain as far as we can get it. It doesn't tell us when you can. You're gonna hear from them. But it does show us that they already accepted the case and they're working on it, so it shouldn't be too much longer.

I do appreciate that. Thank you so much for your help. You've been wonderful. Y' all have been real good, man. I mean, the last two people, Americans that I spoke to. Hello.

Because the first thing.

Y' all have been amazing. So I do appreciate your help and keeping me on the phone and just being so patient with my. Just frizzle frazzled.

I appreciate your patience as well. I'm sorry that it Took so long for me to get it up that direction.

She.

When she transferred her. When you were transferred over to me. It's not my department. And so it was really, really, really hard for me to figure out my way over. So I had to consult on consult to work my way over to be able to throw it up there for you where it should have been to begin with instead of over here. Yeah, it should have already been all the way up there already. And it wasn't. It somehow fell down the ladder, and I'm not sure why, but I put it back up past where it was last time. So hopefully it'll fix this time. And since they're already working on it, you'll hear something soon.

Okay, thank you so much.

Absolutely. You have a good rest of your night. You enjoy your meeting.

You too. God bless you as well. Bye. Bye. They have been phenomenal. Just like this process. Ain't been by Kaka, but they have been phenomenal. Their customer service is really good. For those who don't know, I was defrauded yesterday on intuit. They own TurboTax, QuickBooks.

What? Credit Karma. I mean, they own a whole bunch of different things. And.

The short of it is I called them from a number, their main number that's on the website, same number I'm calling today.

And the support guy said that. He said. The support guy, when I called, said that they had to do a verification, that it was really me. So they called me back. Somebody called me back around noon saying that he was with support. Long story short, he started having me, well, go to your cash app.

Transfer $599 to Bitcoin and send it to this address. What? I'm like, why is this verification? I don't understand, ma'. Am. Because it all ties into your email address, ma'. Am.

I hung up, call them back. Same number they said. I asked them, hey, I don't feel comfortable. Something is going on. They're asking me to do this, this, and this. And. Is this your company? And she was like, yeah, this. That's us. And, you know, so. So I proceeded. And he was like, the money will come back into your account tonight. Guess what? Money ain't even in my account tonight.

And then he asked me to go to my Target card. I'm like, what the hell does Target have to do with my verification to get into my online QuickBooks account? He said, it's just a part of the process. We're still verifying to make sure that the money we. So that we could see if the Money shows up on your QuickBooks account. That don't make no sense. So he was trying to make me buy a gift card for like $360 or something like that.

And he told me to click on it. He was. He's walking me through what to click on, right? Because he has. He can see my screen because he had me download this app where they can walk you through stuff. So he's telling me, okay, select that gift card now. Put in this email address. And I'm like, hell, no. That's when I hung up. It was like, David Martin, 08 something. I'm like, Nah.

It'S just too much. So.

I'm trying to be all right, because this has been.

I feel you. Because I, I went through that same thing in the, the, the key to, To a scam. If they start talking about gift card. When they mentioned the gift card.

That it's a scam.

Well, well, well, here's, here's the thing, though.

I thought, you know what I'm saying, I'm pretty snappy with a scam.

I mean, they smooth. They smooth, they smooth.

But. But I called an official number.

Yeah, yeah, yeah, I believe.

But they, they are fishing those numbers.

That's exactly what they did.

And they have gotten really.

They have gotten really good at it.

I don't even understand what fishing a number. How do you divert a number? Like, I call the exact same number. The ex. The lady. That lady called that exact same number five times.

I. I'm telling you, I don't know.

How they do it, but they can do it. That happened to me with, With US Bank.

It happened to me like two weeks ago with AT T.

And I just don't ever give them access to my computer.

When you want access to my computer, we're done.

But. But I just. I'm so confused because I call God damn into it. Like, I'm. I'm just. I just. They are slick now. I just don't understand how you can call a number, get all of the right prompts.

I mean, I mean, how they can intercept that call. I mean, it feels like, if anything, you know, the guy who answered the call from India had one of his buddies or something give me a call and say you're from Intuit. I don't know, man. I'm just.

I mean, I mean, it. I mean, it happened.

I had.

I got an official letter from a local bank saying that I had a overdraft. So I, I mean, they sent me a letter, official letter here. I called the number and I I paid. I paid the overdraft, and next thing I know, them jokers had done.

They.

Somehow they had access to my bank account. I had to shut it down and start from scratch.

But you answered a letter. I'm thinking letter, email, clicking on something.

Not the official phone number, right?

The number that's available to the general public. That's. That's what I was going to ask you earlier.

That's what. That's.

Where did you get the. But that's it. The number on the website. If you Google.

Irs, period, and you get that, and they said to contact rs, you can, you know, this email or this phone number to contact us. And that's what you did. So I'm with you.

That's what I did. I went to their freaking website. Like, what?

They are so slick.

But see. But see, I fought them. Because if your process is for somebody to call you. You trying to verify me, I need to verify you. We need a code word or something.

Yeah.

This is not okay. This is not okay. It is definitely not okay. And I've been frazzled. I didn't change my bank accounts, but y' all got everything. Like. God dang. It's just crazy. Crazy. Yeah. Yep.

I mean, it's.

It's.

It's deep. You. I mean, you almost can't trust a phone call. But I'm telling you, if. If you hear anything about a gift card.

Stop.

I did. I did. I didn't think. I didn't. Huh?

Oh, I was gonna say, Ralph, I agree with you on that, because I had a gift card thing online once, and when they were telling me to go to Walmart to get a gift card, I did one, and all of a sudden I went, stop. And the woman at Walmart stopped me because she said, ma', am, that's nothing but a fraud. I went, oh. And I turned around and came right back home.

See, once you. Once you purchase that gift card and. And give them that number.

Yeah. Well, you know, you transfer some money to Bitcoin, it's gone. You know what I'm saying?

But I. But my thing is, I trusted it because I called that official number twice.

I mean, you. It's sad, but.

This is the. I hate to say it like this, but this is the real world.

Oh, Lord. Okay. Yeah. So.

Just frazzled.

Sounds like you all need legal protection.

Yeah, I do want to sue. I'm. I'm. I'm. I'm trying to get an attorney, because I would prefer for my attorney, because this. This can't be. This can't be right.

You can get attorney. Oh, I need to talk to you about getting an attorney. You can join a legal shield and get your attorney just by a phone call. Well, only for less than a dollar a. A day.

Well, I have legal shield, and they.

Can take care of it for you.

Nah, nah. I want to go far.

They gonna only go so far. I'll call them. I'll call them.

Oh, they will go far, far. I'm a member. I'm an associate. Yes, they will go far, far.

Okay, I'll call them tomorrow. I definitely will. But when I've called in the past, they look over paperwork. They do stuff. But I want to go to court. I won't. I won't.

They do that. They do that.

Okay.

All right. Well, hey, I've been a member for the longest. I guess it's gonna pay off tomorrow. I'm just so frustrated, man.

They do that. Yes.

So I. I'll text them tonight for them to call me tomorrow.

Unbelievable.

Unbelievable. So, y'. All. I mean, we went over that. I'm. I promise you I'm gonna go over the rest of it. Let me get my docs together for this closing. My head is pounding. I haven't eaten. I've been on the phone two days straight, and I'm. I'm, like, jittery on the inside. That's what's kind of getting me, because.

You have all my information. Like, you have my address.

Now. You come in here, my dog gonna eat you alive. But you know what I'm saying? Jesus. I don't like that.

I don't. I don't like it. But I'm. I will be back tomorrow to go over these closing documents. What we'll do tomorrow.

Is I'm gonna present.

Hold on one second.

I won't be online tomorrow. Will you be doing it via Zoom, so I could watch it later, or. Yeah, I'll be doing it via Zoom. Okay, good. Thank you.

Okay. Y' all can see my screen. Okay. So, yeah, what I'm gonna do is probably go through some more of these. I want to go through these documents because.

And I sort of like the way this one looks a little better.

Because it tells you the details to check with your clients.

I'll also give you this. Give this to you guys.

Control C.

You ladies and gentlemen who are with me in my VIPs in the school group.

Yeah. Okay, so this is the closing disclosure. It tells you, like, if you click on stuff over here, check the spelling of the name, ask the lender to correct Any inaccurate contact information, even minor misspellings he called cause big problems later. Check that your loan term purpose, product and loan type match your most recent loan statement. And that's all of this information right here. So loan term meaning how many years the loan is the purpose, meaning are you purchasing a house or refinancing it, or is it a home equity loan? The product, meaning is it a 30 year fixed mortgage or is it.

Variable rate mortgage? The loan type, is it conventional, fha, va, VA, or usda? And yeah, that.

Then it says check the loan amount if it has increased. Ask your lender why. And, and this is for y'.

All.

You just. When you have a client, you're not going into detail to ask your client why and all of that stuff. You're just showing them where this information is located. Now if they say, hey, I saw another document and that's higher or the interest rate is higher, you stop the closing and say, would you like to call your lender?

We will not proceed any further than you feel comfortable proceeding.

Okay.

Again, check your interest rate. Does your loan have a prepayment penalty? It's right here, the prepayment penalty part.

You can just call all of this stuff out. Here's the loan amount, interest rate.

Whether or not your loan has a prepayment penalty.

The estimated total monthly amount, that's what most people are looking for. And then closing costs and cash to close.

It talks about that right there.

Check to see if they have estimated taxes, insurance and assessments that are not in escrow.

So this includes property taxes, homeowners insurance, and other homeowners association dues. That is not an escrow. So that's what that's for.

All right, and then you can get definitions down here. So I've been to real estate school, so I know this stuff. But if you want to, what is the principal, the amount you will borrow, and the interest the lenders charge for lending you money, usually made up of the main components. These two usually make up the main components of your monthly mortgage. Your total payment will typically be more than this amount due to the taxes and insurance. So it's, we call it P I T I Principal, interest, taxes and insurance. And if you want to just be marvelous and you're a real estate agent, send them to this website, it's consumer finance.gov.

Let's go to page two. And this is some of the stuff that we just saw. Where it starts breaking down costs and how much you're paying the loan cost, which includes the origination fees, application fee under Running underwriting fee, all of this stuff. These are the loan costs. Then other costs include recording fees, transfer tax. This is stuff for the title company.

Because they're going to record it. The prepaids include your homeowner's insurance, mortgage insurance.

Property taxes, any initial amounts that you'll have to have in escrow to cover your taxes over the months. Normally you have an escrow of two times your mortgage payment. So if your mortgage payment per month is 1,000, then it's going to be 2,000 in escrow normally.

And then here are other, like HOA total cost, borrower paid, that says 9,700. Any lender credits are at the bottom. Again, you can go through definitions, but this, this one, I like this one because it really, really walks you through this closing disclosure.

And you go on down. Now after that first page, you really don't have to walk your, your.

Clients through any of this other than cash to close from borrower. So that means that you'll be. They'll. They'll need to bring $14,174 either. Normally you don't collect that money. It's normally wired, but sometimes if it's, I think if it's below a certain amount, they can bring like a check or a money order. I've seen that before at closings.

But normally you don't touch any money.

And that amount, the cash to close, you just confirm that on that page.

And I think that's it for this.

For the seller's, the closing disclosure.

All right, let me go back. But like I said, this front page gives you pretty much everything that you need to know. It gives you the cash to close. It gives you everything.

So that's what they're normally looking for.

We go back over here.

One moment.

They generally have, okay, key tools, closing checklist, closing Disclosure, Guide to Closing Forms.

So it talks about the promissory note, the mortgage.

Initial escrow disclosure, and the right to cancel form. And it breaks everything down pretty much. I don't know if y' all could see this real good. How do I make it larger?

I can't make it larger. I don't think y' all can see it all that great. But I put the link in the chat so, so that you could look at it more. This document may be called the mortgage security instrument or deed of trust. When you sign this document, you are giving the lender the right to take your property by foreclosure if you fail to pay. If you fail to pay your mortgage according to the terms you've agreed to. This document restates the basic information included on the promissory note. The promissory note is just a promise you making a promise to the bank that you are going to pay them as you've as stated on that document as well as explains your responsibilities and rights as a borrower. The mortgagee refers to the lender or the recipient of the mortgage. The promissory note is a legal document you sign.

And to agree to repay your mortgage. The note will provide you with details regarding your loan, including the amount you owe, the interest of the mortgage loan, the dates when the payments are to be made, the length of time for repayment and the place where payments are to be sent. So this is important too. I wish I could make this larger for you. Oh, wait.

Okay.

All right.

So number one is the total borrowers promise to pay in return for a loan that I have received. I promise to pay and then there's amount. This amount is called the principal plus interest to the lender. The lender is and it'll be the lender's name. The second part is where it's going to have your interest rate. The third part is borrow is failure to pay as required. You'll get late charges if you default. You'll get if you do not pay.

The full amount of your monthly payment when it is due, it'll be in default. You'll get a default notice and this gives all of the stuff that will happen if you were to go into foreclosure. This section explains consequences of being late on your monthly mortgage. This sample form is for a fixed rate. However, if the loan is an adjustable rate, you'll find an explanation for the way that your interest rate can change and any caps on how much it could increase.

Okay.

This is the initial escrow disclosure. That right to cancel form is pretty important to move out the way.

I'm trying to make it big and make it big. Okay, here we go.

I want to make sure that y' all can see it.

All right, this is the initial initial escrow account disclosure statement. And it talks about here your monthly mortgage payment until your next escrow analysis will consist of the following principal interest escrow and then your total payment.

So this is the principal interest. This is the amount that's going towards taxes and insurance on a monthly basis and deposits to escrow. It's showing that 4950 and it's showing should be showing how that amount increases month over month. But depending upon the date that you bought your house, this is going to go down to zero and then start over again on its birthday or the date that you bought your house the next year. That makes sense. It says. This section shows how your escrow money will be spent. Each line includes your monthly escrow payment, any disbursements, withdrawals to pay taxes and insurance bills, and the running balance held in the account. Note that the escrow amounts could change over time. Also note that anything that is prepaid out of the escrow account.

You will not have to pay separately. So we're showing you on this date, March out of the escrow account, they paid $177.03 to the city taxes, 240 to hazard insurance.

You know.

And it gives you another breakdown here. Items anticipated disbursement from your escrow account.

Okay, this is your notice of the right to cancel. Your clients will have three business days to cancel the loan. Once all of the. All of these things have happened. Meaning, you know, you go through the closing. Let me see what it says. Meaning once, right after you close, they got three days of cancel.

This document explains the rules for when and how you can cancel your loan and what happens if you do cancel the loan. If you are purchasing a new home with a mortgage, you do not have the right to cancel your loan after closing. Again, if you are purchasing a new home with a mortgage, you do not have the right to to cancel your loan after closing. So this right to cancellation is for refis. It gives you three days. In some circumstances, you have. You can have up to three years to cancel your loan if some of the information on this closing disclosure is missing or wrong. This is part one, the date of the closing of the transaction. Okay, Your right to cancel. You are entering into a transaction that will result in a mortgage on your home. You have a legal right under federal law to cancel this transaction without cost until midnight of the third business day.

After which of the following events occurs. The date of the closing transaction. So until midnight of the third day of the date of the closing transaction. The date you received your truth in lending disclosure.

The date you receive this notice of your right to cancel. Normally, it's the date you receive your notice of the right to cancel. Your closing disclosure fulfills this requirement to cancel your loan. Notify your lender in writing at this address. They'll give this address. And you keep this in mind, y'. All. Your buyer does not, does not sign this. They don't sign it. I wish to cancel is what it's saying. So they don't sign this in front of you.

All right?

Let's see what else they have over here.

Those were some real good documents. I wish they had all of them.

A HUD certified counselor. I think that's all of them. That one has.

Let's see what the.

Oh.

I don't want to do that. Take them.

Oh, this one is pretty cool, too. It tells you what the mortgage note is. The mortgage deed. We have a deed of trust in Texas. We don't have a mortgage deed.

But. So, yeah, we'll go through more of this stuff tomorrow. Let me get on these documents, y'. All. I love y' all to life.

I thank y' all for rocking with your girl.

It is a journey. Do you hear me?

It is a journey. Does anybody have any questions for me?

I have one, but it can wait.

I have one, too. How's everyone?

You can ask.

You want to go ahead, Holly?

Yeah, no, you go ahead. You're on the screen.

Go for it, girl.

My question is kind of. I keep getting emails, and I just need to know if it pertains to me. I just recently joined, not too long ago, but I'm getting these emails about my membership is getting ready to be canceled.

No, it doesn't pertain to you. We had a. We had a glitch in the group where.

Okay, yeah, we had a glitch in the group where.

I'm sorry. We had a glitch in the group where we were supposed. So when you. At one time, when you purchase the product, purchased all of the training, we give you one month free to the school group, but the payment processor was not charging. They give the one month free, but then it wouldn't be charging after that, and we didn't catch that for a long time. So we're going back and getting people who are in the group to pay that. So, yeah, so it doesn't pertain to you. Okay, okay. Let me let. Let me let YouTube off of here. Hey, guys, if y' all have any questions or anything, put it in, post it, and I'll get back to you and answer any questions that y' all have. I'll be back going over some of these closing documents, because I do believe that it's very important. If you're a notary public loan signing agent, you need to know these documents. You are not an attorney, so you will not be going through these documents in detail with your clients. But you need to know this is part of your profession. You know what I'm saying? So you need to at least read through it one time. So we'll be going through it, but I love y' all to life. If I'm coming back tomorrow, then I'll put. I'll post a Whatchamacallit. I'll post a.

I'll let you know. A notice. I can't think. All right, y'. All. Talk to you later. Bye. I'm.