C Tann-Starr's Outside Blog

I just downloaded a fascinating PDF complaint regarding a pending lawsuit initiated by an appraiser who was removed from the approved list by a major banking institution. California appraiser J Wertz is suing Washington Mutual, eAppraiseIT, Lenders Services and others in a complaint filed in February 2008 that alleges she was removed from WaMu’s "proven" appraiser panel for indicating a “declining market” in a May 2007 report.

Here's tthe link to Working R E Magazine (online edition) where you can read the article and download the PDF:

http://www.workingre.com/workingre/appraiser-sues-for-blacklisting.html

She is demanding damages and a Jury Trial. I believe this is going to be a fascinating case to watch unfold in the California Supreme Court. To quote the plaintiff, “No appraiser should have to decide whether to keep putting food on the table or do their job correctly and not violate the law.” - Jennifer Wertz

http://www.mortgagenewsdaily.com/3142008_RESPA_Changes.asp

I was facinated with this article earlier today. I guess when you are a real estate agent working on other people's projects you don't really pay attention to closing costs until it's your turn to okay the agreement. There were points I completely agreed with, e.g. "It consolidates closing costs into major categories to prevent "junk fees" and displays total estimated settlement charges prominently on the first page so the consumer can easily compare loan offers. In addition, HUD's new proposed rule would specify the charges that can and cannot change at settlement. If a fee changes, HUD proposes to limit the amount it can change. Modifications to modify the HUD-1 settlement statement are mainly to assist consumers to compare actual charges on the HUD-1 with prior estimates on the GFE."

Then there were points that I didn't agree with, like the proposed mandatory "closing script." As a Notary Public, I would have to get out of the Signing Agent business as I am prohibited from explaining the loan documents to the customer. I am only supposed to witness, notarize and return the loan documents to the client who is contracting the mobile notary service. As an independant contractor providing an array of services, this spells trouble with a capital T. Did anyone ever stop to think of all the conflicting state laws that prohibit certain licensed individuals from doing certain things?

What if the customer asks the loan siging agent a question during the closing portion of the mandatory script being read? What if I know the answer, but as a Realtor and Notary Public am prohibited from answering per state law, but am required to point out the answer in the documents by the new HUD requirements? Do I loose my two licenses for complying? Do I get fined or sanctioned for not complying?

The end of the article has a link where you can read the entire nightmare on the HUD website. I don't think RESPA intended to kill the entire Notary Signing Agent business, but they may have just signaled the beginning of the end... What say you?

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