There's been a lot of discussion about the proposed HUD closing script. The NNA thinks that the script constitutes UPL (unauthorized practice of law). But I've yet to see a legitimate reason explaining how reading a script word for word can be considered practicing law. The NNA also claims that the signing agent industry is being threatened by this proposal. Again, how is reading a script a threat to our existence?
That said, I think walking into a closing and reading a script, including a line by line, fee by fee comparison of the HUD and GFE (Good Faith Estimate) is impersonal, unprofessional, and probably will cause borrowers to tune out much like most of us do when a telemarketer calls and starts reading a script. Some have even suggested that we read the script over the phone BEFORE the closing. Can you imagine what the companies that hire us for their closings would think of that practice? The script can be download here:
I've commented on this in other places, so I'm just going to include some of those comments here:
I think it gets silly when you start reading every line of the HUD/GFE comparison word for word, especially where the figures are identical.
Going over this by phone? Well, maybe your in-house closers can do that, but as an independent signing agent, I know that many of the companies that hire us would feel that this is outside of our scope of duties. I don't think loan officers would appreciate us going over loan terms with their borrowers before we're even at the table. I can imagine the conversation if the terms I tell them over the phone aren't what they were expecting and they call the l.o. and tell them I called them and told them their terms before our appointment (and maybe before the l.o. had a chance to make the call that he/she was going to make to discuss the change). I can kiss that company goodbye. No way would I ever do this over the phone.
it's not the information in the script that I have a problem with. It's vital information and something that I think must be covered with the borrower. It's telling me I have to read it word or word like a sixth grader reading out loud for the class. Anyone that's ever given a speech or made a presentation (and that’s what this is, a presentation) knows you don't write out your presentation word for word. You end up sounding cold and robotic. Don’t give me a script. Give me an outline or a bullet point summary.
"The following is a summary of many important details involving the mortgage loan 123 Main St, Anywhere, U.S.A. Let's compare these important details with the Good Faith Estimate, loan documents, and other disclosures, shall we?" Come on, who talks like that? I don't. So, if instead of that gobbledygook, I say "Here are your loan terms," have I failed the borrower? Am I a bad closer? Instead of saying "read this word for bloody word," allow me to be human. I can cover everything that needs to be covered without having to sound like an infomercial spokesperson.
A couple of months ago, my friend and colleague Renee Kovacs decided to try a triple somersault down her stairs. The results of this spontaneous act were sadly predictable. After a couple of months of milking her injuries for all they're worth, Renee and her surgically repaired foot are ready to get back to work. During her extended vacation, Renee has been kind enough to refer many appointments to me. So I'd like to use this space to say thank you. I appreciate her trust and confidence in me, and I know that if the shoe (or cast) were on the other foot (so to speak), I would trust her with my clients. I hope I'll be able to return the favor someday soon (but I'll be on a cruise or backpacking Europe instead of hobbling around on crutches). So thank you Renee and good luck back in the field. I'd say "break a leg," but I'm afraid you'd take that literally.
