I’m frequently asked by loan signing agents: How do I explain the California Per Diem Interest Disclosure form?
But before I tell you exactly how to explain this to a borrower, you need to understand what this particular document is saying.
The easiest way to put it is this page tells the borrower that they owe interest to the lender the day the loan gets wired to escrow, not when escrow closes.
Allow me to elaborate:
Let's say the loan funds on November 15th. That means the borrower owes interest to the lender starting on November 15th through the end of the month, November 30th.
Pretty simple, right?
But, escrow might close the loan one day or even a few days after November 15th, especially if it’s a weekend or holiday.
Keep in mind, while escrow always does their best to close the loan the same day they receive the wire from the lender, closing the loan the next is business day is a regular practice.
So if escrow can't close the loan the same day they receive the money from the lender, then the borrower pays interest on a loan that isn't even theirs yet.
Packaging loan documents is hands-down the best way to get repeat loan signing business from an escrow officer.
Because packaging is technically the escrow officer's job, NOT the notary loan signing agent's job. And it is for this specific reason that so many signing agents simply don't do it.
But here's the thing...
If a loan signing agent can do something that takes a task off the escrow officer's plate, it will separate him or her from other notary loan signing agents in an exceptional way.
Think about it from the escrow officer's point of view: a notary loan signing agent who knows how to package loan documents is a valuable, time-saving asset... it only makes sense to choose that agent for future loan signing appointments again and again.
And remember, loan signing jobs that come directly from escrow officers (and not signing services) typically pay $150-$200 per hour-long appointment.
So, What Does It Mean to 'Package' Loan Documents?
And what makes it such a big deal?
These are great questions.
Packaging is the act of breaking down a set of loan documents after they have been signed by the borrower(s), taking copies of the necessary pages therein, and creating separate piles (or 'packages') for the title company, the escrow company, and the bank, according to what they need for their respective files.
Or, put simply, it means making sure that the proper documents get to where they need to go in order for the loan to fund on time.
Like I mentioned above, this needs to happen after each and every loan signing appointment anyway... whether it is completed by the escrow officer or the notary loan signing agent doesn't matter.
However, what makes packaging so valuable (and what can also make it tough to learn) is the fact that it takes precious time and requires you to have a basic understanding of the mortgage transaction process.
If a Signing Agent is Having Trouble Getting Clients at a Local Title Company or Escrow Officer, it's Likely Because He or She Doesn't Know How to Package Loan Documents
And learning on your own from scratch can be frustrating, especially when you know that this skill has the ability to open up new doors to direct sources of loan signing business.
But not to worry.
Loan Signing System's online course for notary public loan signing agents makes packaging easy!
It's five star-rated training includes an entire module dedicated to packaging and how you can leverage this straightforward (yet profitable) skill to get repeat, high-paying appointments directly from mortgage professionals who often pay $150-$200 per loan signing job.
You will learn step-by-step — regardless of experience level — how to walk a borrower through a set of loan documents and then, most importantly, how to market that skill to get the highest-paying, consistent business in the industry... all under a 30 day, risk-free money back guarantee.
Click on the link below to get started today!
Signing agents constantly ask me is it a good idea to try to undercut the signing service and market themselves directly to the escrow officer if they got the signing through the signing service to begin with.
This is a very interesting question.
I mean is attempting to undercut the very company that gave you business even ethical? Does the escrow officer mortgage officer or real estate agent agent look down upon you for trying to attempt this? And what are the down falls?
So let's start off with is this even ethical? I ask you first is it unethical for a Starbucks to open up next to a mom and pop coffee shop? Is it unethical for a McDonald's to open up next to a Burger King? Is it unethical for one super market to advertise a lower price on soda than their next door neighbor’s advertised sale price?
I can't be your moral compass. Your thoughts on business are your thoughts.
However I can speak as an owner of a signing service who has signing agents attempt to under cut me every single week.
To that I can say that I understand why one would do it. Do I necessarily agree with it? No. But do I understand? Yes.
We all have families to feed so I don’t take it personal when I see it happen.
That being said, once I find out they are trying to undercut my signing service, I do not use them again.
Which brings me to the real point of this blog. The real question should be does under cutting a signing service make make you more money!?
The answer is frankly, it depends.
If a signing service is feeding you a ton of business, I'd argue it's better not to rock the boat.
When (notice I said “when” not “if”) the signing service finds out, you will not be used again. So is it worth $50 more per signing but losing all their business?
So trying to under cut a signing service simply comes down to math. A math problem you need to make.
Oh and to answer the question whether or not the mortgage professional will look at you funny if you are trying to under cut the signing service. The answer is no, they get solicited business so often they probably will barely recognize that you even pitching them.
So if you are thinking about undercutting a signing service who gave the signing, think long and hard if it makes sense. No one can blame you for looking out for yourself but does it really make sense in the long run?
About the Author
Mark Wills is the course instructor of the top rated Loan Signing System agent training course. He has been an active professional loan signing agent for nearly 20 years and owns a loan signing service that does thousands of signings a year.