Tulsa Mortgage : Podcast 161
This is Steve Currington dotcom and the Steven Tyler show episode number 161.
Tulsa Mortgage To Steven Tyler. With Steve Tyler one. Negotiating partner. All right. Very smart. Good for you.
They’re talking about everything you know. Nobody knows what it’s like to get ready because Steve.
YO YO WHAT IS UP. I think it’s important to say today that we are talking about what are loan disclosures. You know what are. Tsalagi remember. By the way Steve Currington dotcom here. I’m here to tell you why.
But do you remember when I banned people from calling loan disclosures loan disclosures to kind of negative dirty word disclosure cause you’re like yeah we need you to come in because you don’t come in anymore but people used to come in and sign their loan to schools. And people would not show up now.
Right. It’s like calling the loan process a process.
Tulsa Mortgage You don’t do own or if you’re from like Britain you’d see a process or no. If you’re if you’re Damond from DDE give him a shout out to the HE SAYS process. He’s from Canada.
But seriously what are loan disclosures right. What are loan disclosures. Well they’re not that they are disclosures but I would recommend if you’re a loan officer and you’re watching this on total ending you watch the outtakes.
I’m sure that will at some of the video of before of being argued about why aren’t we podcasting more. But if you’re a loan officer you should never ever ever refer to the documents that a client has to sign in order to start the loan process as a sculpture. Personally that’s a really good that’s kind of like talking about a non occupying Cobar or to a first time homer. They don’t know what that is right now. It’s
like speaking in medical terms to a 5 year old. Or. To Steve Currington because I’m like a Feigele.
Tulsa Mortgage So you know you follow me to death. Because the reason I banned it before is because people would not understand what they were Camy like disclosures.
What Hold on a minute you want me to come signed disclosures. What are those.
And so then it opened this whole battery of questions right. Well would it. What are these. So am I committing to help if I sign those. Do I have to do alone. I mean. I’ve literally had to talk. You’ve been in there about I tell people this like hey. So if I sign this does this mean I have to close and to which I say. Tyler no tyler you do not have to go. I would have to drag you to the closing table physically and force you to sign loan documents. You are acknowledging receipt of these.
I was actually like the first thing we said when we sat down. Yeah. One of the persons. All this stuff you need a lot of signatures. It’s going to take a little bit to go through it quickly as we can. But none of it is binding. It’s not a binding contract between us.
Tulsa Mortgage Yeah. The other thing that’s very important. She didn’t know this. There’s about six pieces of paper that mean anything. Like I’ve never met a client that wanted to read. Well I might have had an inch or two that I wanted to read the credit score to school. Yes. OK. Now most people don’t give a crap about any of that stuff. OK so if you tell them. Tyler now we’re doing the electronic disclosure. What I would like to put at the beginning of all of our electronic disclosures is none of this matters except for. These five pieces of paper. Right. And here’s what I mean by none of this matters. OK. There is a. The Patriot Act the Patriot Act says that we have to verify that you are not a terrorist and that we verify your identity. And
then there’s the Gramm Leach Bliley Act which talks about the information that we get and who we can share it with your public information or what’s not public information.
I have news for you. I have never ever ever met a person who wants to read that. They just don’t. Nobody cares about it. They’re like where do I sign this. You know how to get there. Probably a terrorist. Yes. Have you ever. By the way I’ve also never had someone that I asked.
Tulsa Mortgage Are you a terrorist. Answer Yes. I’m not sure that someone would. Right. But here’s the point. People don’t care what it is what they want is they want to know what’s my interest rate what’s my monthly payment how much are my closing cost how much money do I bring to the table. Would that be right. All right. That’s it. So. Never. Ever. Ever tell someone I’m going to email or email you your loan to schools. OK. How about this. Here’s a good one because I’ve used this for years here would be a good one. Hey in order to get the loan process started we have a series of documents that you have to sign. They go over things like your payment in your interest rate that we’re quoting you right now but your loan is not locked. For example and like your closing cost and there’s a loan estimate in there and a truth in lending and that type of thing but 99 percent of it is going to mean nothing to you as you’re going to and click through. Wynyard when you’re going through it if you have questions call me. And I’ll and I’ll walk you through because I’ve got the document and I know what order it’s going to take you through it. But most of it is not going to matter to you. There’s about six pieces of paper they’re going to to. Now that is to me a good way to really thoroughly explain to a client rather than saying hey man I’m sending you these loan disclosures I need you to sign.
Because it scares people. I mean it would scare me and I just for a living. Loan disclosures what. Disclosures I don’t get it. What does that mean. What does it mean. Disclosures what are disclosures. It sounds like I’m going to the doctor. Are you going to kill me. Am I not going to wake up from this if I go under. Is there a possibility that don’t come out. You know what I mean.
Why don’t they like disclosing so you and you’re going to do some dangerous. Yeah. This is what I’m disclosed.
You know you have to look desirable. It’s not a waiver. You have to like sign a waiver.
Tulsa Mortgage So. So the question is water alone is hosier’s. Well they are documents that are going to. Communicate to the borrower. The terms of the loan that you’re getting. OK. But there’s also I mean how many pages tiler are in a typical FHA loan package like 67 or 72 or something like that Ryan. They launch them a bunch. There’s a bunch a bunch of them. There’s a lot of them you’re like why do you need 56 pages.
I don’t know. There’s a whole piece of paper if you’re watching on video right now like if you’re listening on on iTunes. Like hear me out here. Imagine this in your head. There is a piece of paper that talks about the paper reduction at. Why. So literally it’s like a whole piece of paper. And then there’s a second page. You remember this one time and it’s like the first quarter of the page and it’s like got stars and stuff and it says. Paper reductionist and it talks about how. We’re trying to reduce paper. And I’m kind of thinking that that’s counterproductive. Yeah but it’s in there it’s in the back. It’s one of the 50 60 or 70 to 80 pages there are they’re just they’re right they’re just they’re.
They’re there. And you just got to sign them or click on them or do whatever right. Yeah because they just are. And so the other thing I like to tell people. Because this is actually kind of funny and it’s actually kind of true. There is a document in your closing package if you’ve recalls along this says two things one of them says that you will agree to pay your mortgage payment in American Funds like in U.S. dollars. Because your lender does not want to pay to convert the money from pesos into U.S. dollars or any other form of currency. OK there’s that document right Taler what’s another funny one that’s that’s in the closing package or that it’s in the dark package.
If you don’t make your payments you don’t get the hint.
You don’t make your payments. Or here’s another one. If you don’t make your payments on time. We’ll report that to your credit. Now why do you think there would be a document that says something like that. Well first of all because someone tried to pay in pesos. And then the lender had to convert it. But they didn’t have a disclosure that said you can’t pay me in pesos. Why do you think there was. There’s a document in there that says those other things it’s because somebody did it. Somebody literally sued a lender and said I didn’t make my payments for six months and you reported that Mike to my credit and nobody ever told me that if I didn’t make my payments. You wrote a report. Well is it common sense. Yes but are a lot of these documents for the least sophisticated consumer tire. Yeah that’s what it is is because literally and I’ve told people it’s a 100 times. Most of these are here because somebody sued somebody. And so we had to create a new tax code that says hey you have to pay with American funds. Hey by the way to do this. Hey by the way you have to do it. So lesson here is when you’re going over the loan documents.
Tulsa Mortgage Call them that are calling the in the initial loan documents but don’t call them loan disclosures. I don’t like them being called loan disclosures. I think it’s scary for clients to do that. So that’s why we don’t do it.
Tulsa Mortgage Broadcasting live from the koala’s studios in Tulsa Oklahoma. You’re listening to the Steven Tyler show