Reverse mortgages are becoming more and more popular, and it is in the best interest of notary agents to learn as much as possible about these loans and gain experience closing them.
Notary signing agents can play a key role in reverse mortgages because by having a notary signing agent do the closing, it allows the client to stay at home. This is especially beneficial for those borrowers who cannot drive, are confined to a wheelchair, or for some other reason. The notary’s signing agent can bring the loan documents to the borrower’s home, or wherever he chooses to do the signing. I recently did a reverse mortgage closing on a Red Robin restaurant, because that’s where the borrower wanted to sign.
For the experienced notary agent, learning how to close these loans should not be a problem. Although there are some documents that are unique to a reverse mortgage loan package, the signing procedures are basically the same as with a conventional loan.
There is a book that I highly recommend to notary signing agents who want to learn more about reverse mortgages. It’s The Complete Manual of Loan Documents and Transactions: The Notary Signing Agent’s Guide to Common and Uncommon Forms and How to Notarize Them. Reverse mortgages are covered in Chapter 3. Almost all of the documents are included in a reverse mortgage loan package, along with an explanation. Some of the documents have ‘Notes’ attached. For example, there is a note that explains why there are 2 Deeds of Trust and 2 Notes.
There is another training option for notarial signing agents. Banserv offers reverse mortgage training on its website. The PowerPoint presentation is very well organized. Notary signing agents who want to register can visit Bancserv’s website.
Between those two sources, that should be all the training a notary signing agent needs to do reverse mortgages. He will no doubt also receive instructions from the title company that hires him.
Of course, the best training is to do the closings. These usually go very well, because the borrower has been well advised. They are already very familiar with what they are signing up for and most of their questions have already been answered. And keep in mind that, as with conventional loans, the signing agents of the notary are not there to explain the terms of the loan.
Notary signing agents may be reluctant to accept an assignment to close on a reverse mortgage because they believe it will take an inordinate amount of time. I have not found that to be the case. Another concern is that the borrowers are old and need special attention. You may find some borrowers who do. I once had a firm where the borrower’s wife was bedridden. He was able to sit at the table, but she had to lie down on the sofa in the living room. Fortunately, the borrower’s daughter was there to help with the signing. She passed the papers from her father to her mother for me. You may also find that borrowers will want to take a moment to get up and stretch. They are not able to sit for long periods of time. Your hands may also cramp. Carry soft-grip pens. Pay attention to his body language. If they seem uncomfortable, find out what can be done to make things more comfortable for them.
This is all part of the training too: learning to deal with the various situations you will find yourself in. Most of it will come from experience.
By all means, don’t hesitate to accept an assignment to do a reverse mortgage closing. It adds to your repertoire and makes you a more well-rounded notary signing agent. And you will also meet interesting people.
Good luck.
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