Re-Administering the Ether

I had occasion to talk with a mobile notary the other day. These are folks who, when it's time to sign loan docs, will come to a time and place convenient for you. For many people, it's hard to find time in a busy schedule to go to the title company or escrow company office to sign loan documents. We use these people a lot.

I told him it was not my practice to be present when loan documents were signed and asked him if many loan agents ever attended the "signing ceremony." He said not usually, but when they do it was usually to "re-administer the ether!"

By that he said he meant that the loan terms on the loan docs were not attractive and the borrower had originally been numb when he agreed to the loan. The loan rep needed to show up and anesthetize the client again or he'd refuse to sign loan docs!

That may sound funny, but it isn't.  Over the years I have heard lots of stories from clients who tell me about the last unhappy encounter with the mortgage business. A loan officer can tell blatant lies on the initial Good Faith Estimate and when you see the loan documents a month later, they can be completely different.

There is virtually no enforcement of this. In fact, the lawyer at one regulatory agency told me, "Our position is that if you sign the loan docs the deal was 'renegotiated.'"  That's a ridiculous position, and it came from someone who is supposed to be looking out for consumers.

This is more evidence that the person you hire to work for you ought to be honest. Sadly, there are a large number of ethically challenged people in the mortgage business and with business off significantly, they are desperate. You should get references and check your loan officer and the company out before doing business with them.