Saturday, January 31, 2015

Mortgage Professor is going to change this. Thanks for your feedback.

Really want your feedback on this one!
The Mortgage Professor advises through his column in the Fresno Bee that a notary signing agent should be reported to the Consumer Financial Protection Bureau (CFPB).  (At least that's what is sounds like he is saying!)
First, let me say that I am a huge fan of Jack Guttentag who calls himself the Mortgage Professor. I want to formulate a note to Dr. Guttentag to discuss with him why it is unlikely that the notary is at fault here.  As you will read, Dr. Guttentag suggests that a borrower contact the CFPB and complain.  Ultimately, that translates into a borrower complaining about a notary signing agent.
From the Fresno Bee.
Q: I refinanced a mortgage I had with Lender A through Lender B - or rather I thought I did. All the requirements were met, the closing was executed at my home by a notary, to whom I gave a check for $418. But several weeks later I discovered that the old loan had not been paid off. Despite numerous phone calls, I was not able to get an explanation from anyone at Lender B, except that the last person I spoke to there told me that the refinance would have to be done over ... What should I do?
A: What you shouldn't do is refinance again with Lender B. What you should do is to contact the notary agent and request the $418 be returned immediately. In addition, write a letter of complaint to the Consumer Financial Protection Bureau, and whatever state agency regulates mortgage banks in your state. You could sue B but it would be difficult to establish damages and probably is not worth doing.
Jack Guttentag is professor emeritus of finance at the Wharton School of the University of Pennsylvania. 

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