Does Notary Direct Value Your Servcies?

Some of you may have received the following email today from Notary Direct:

I want to thank you for your continued support in assuring the success of Notary Direct. We value your services...blah blah blah. Unfortunately, with the economic turmoil faced by all (wait, I thought the economy was recovering?), we have been forced to cut our costs (again?) to our clients in order to remain competitive (cheap).  Although the majority of us felt the crunch back in 2007-08 ( they likely cut fees back then too), we continued to pay our notaries premium amounts to conduct each of our closings (actually, already on the low scale in the industry). Unfortunately, we are no longer able to do so (our model of hiring cheap notaries isn't working) and have been forced (choose) to implement a pay cap (so we can hire even cheaper notaries) for services rendered for all local closings within your area. 

Effective April 15^th, 2012- Fee Table:

Single Set of Loan Documents (Over Night): $50.00

Single Set of Loan Documents (Email): $70.00
  
Now I have to ask, why would any signing agent work for these kind of fees?  Do you understand the value of your time?  Do you understand the overhead for things like your computer, printers, copy machine, fax, phone line, cell phone, car payment, car maintenance, gas, paper, toner, pens, advertisement and marketing, certifications, listing fees, utilities, etc., etc., etc.?  

Let me remind you of something.  You are not a commodity.  The lowest fee does not win.  You are a service.  And if you're good at what you do, you are a valuable service.  Only you can decide what your fee should be.  But please...remember your worth.     

Electronic Loan Documents To Borrowers

I've seen more than one notary signing agent boast that instead of printing copies of the loan documents for the borrowers, they provide the borrowers with an electronic copy (disk or zip drive) instead.  They do this WITHOUT permission from the lender or title company.  Well, at least one title company is saying "no way."

 When receiving closing documents electronically from ServiceLink, you must print and provide a paper copy to the borrower at settlement, no exceptions.  Providing electronic copies of documents is not permitted under any circumstances.

Manipulating The LIBOR - Is This Slipping Under The Radar?

The Justice Departments for the U.S., U.K., Japan, and Canada are currently investigating whether the world's largest banks conspired to manipulate the LIBOR index.  The LIBOR (London Interbank Offered Rate) is the index used by many lenders to determine the interest rate of their adjustable rate mortgages.  Maybe this isn't big news yet because it's just in an inquiry stage, but this has the potential to be a powder keg.  Controlling the LIBOR rate would be the ultimate in insider trading.  Banks and traders could potential make millions (billions?) by knowing the direction of the LIBOR in advance.  Stay tuned, this could get ugly. 

You Know What Isn't Short About A Short Sale? The Process.

If you've ever closed a loan for a short sale, you've probably heard the stories from the parties involved.  A process that took from six months to a year, endless delays, re-verification, etc...  In an attempt to speed up the process, three Senators have proposed a bill aimed at shortening the short sale timeline.  The bill, called the Prompt Notification of Short Sale Act, requires a written response from a lender within 75 days after the buyer's request.  The lender’s response must "specify acceptance, rejection, a counter offer, need for extension, and an estimation for when a decision will be reached."  the bill also proposes a $1000 penalty if the Act is violated.  

Quicken Loans Continues To Invest In Detroit

Those of us here in the Detroit area have seen a massive commitment to the city by Quicken Loans and their chairman, Dan Gilbert.  In addition to moving their headquarters to Downtown Detroit, Dan Gilbert has been on buying spree.  His purchases include:


The Madison Theatre Building
The Chase Tower
The Two Detroit Center parking structure
The First National Building
The Dime Building
Several additional Woodward Avenue properties 

He also has the rights to develop the former Hudson's department store site.  In total, Gilbert now owns approximately 1.6 million square feet of property in Detroit, making him the third largest landlord in Detroit, behind only the city itself and General Motors. The plan is to quickly develop and renovate the sites.   

And in a more subtle move, Quicken loans has begun quietly servicing more loans instead of transfer the servicing to other lenders, leading to more local jobs.  Quicken has had several hiring sprees over the last 12 months, and plans to add up to 1000 more people in the next 6 months.

The lending industry has been roundly (and in most cases, rightfully) criticized over the years for their practices.  But let's give credit where credit is due.  Dan Gilbert and Quicken Loans have made a huge commitment to revitalizing Downtown Detroit.  Major kudos to Quicken.

BBB - Top 10 Scams

The Better Business Bureau lists the top 10 scams for 2011:

Top Job Scam - Online applications that ask for your information.

Top Sweepstakes and Lottery Scam - Requiring you to SEND money first in order to receive your money.

Top Social Media/Dating Scam - Videos that look like they come from a friend may actually be viruses.

Top Home Improvement Scam - They knock on your door and offer an instant deal.

Top Check Cashing Scam - Someone purchases an item from you online, sends you too much, and asks you to deposit the funds and wire them back the difference.

Top Phishing Scam - Email or phone call claiming to be from The National Automated Clearing House Association asking for banking information.

Top Identity Theft Scam -You're staying at a hotel.  The phone rings in the middle of the night.  The caller claims to be from the front desk, says their computer crashed or that they need to verify your credit card number.  Only they're not really from the hotel.

Top Financial Scam - Debt assistance companies that ask for money up front.

Top Sales Scam - Penny Auctions

Scam of the Year - The BBB Phishing scam!!  Emails that pretend to be from the BBB, asking for information about you or your business.  Oh the irony.

Housing Crisis To End?

According to Capital Economics, banks are loosening credit, increasing the dollar amount of of loans based on borrower's earnings, and loosening loan to value ratios. 

5 Steps For Improving Your Online Social Reputation

From The Kudzu Business Success Center:

1. Consistency (consistent social identity across platforms)
2. Find Your Brand (determine what you want your digital reputation to look like)
3. Own Your Name (track your online reputation)
4. Get Some Help (utilize available tools to help monitor your online identity) 
5. You Aren't A Robot (humanize your brand using social media) 

Does Money Motivate People?

Bank Of WHITE America?

Bank of America today agreed to pay a record $335 million to settle a lawsuit claiming they discriminated against minority home-buyers.The suit charged that Countywide (purchased by B of A) charged higher interest rates and fees to African-Americans and Hispanics and steered them to more expensive sub-prime loans even though they qualified for conventional loans.  U.S. Attorney General Eric Holder said that the investigation found a widespread pattern of discrimination against more than 200,000 people in 41 states.

The BBB Is NOT Investigating You

There's a new malicious email going around.  If you receive an e-mail claiming to be from the Better Business Bureau about a complaint filed against you, DO NOT click on the link.  It's a fake.  The bad English always gives it away.  The e-mail states "The Better Business Bureau has been filed the above-referenced complaint from one of your clients regarding their dealings with you.  The detailed information about the consumer's concern is explained in enclosed document..." 

Forward the email to phishing@council.bbb.org , and delete it immediately.  

Forget Black Friday

Shop Small.  Small Business Saturday is November 26th. 

Michigan Supreme Court OK's Foreclosure By MERS

The Michigan Supreme Court has ruled that it is legal for Mortgage Electronic Registration Systems (MERS) to foreclose by advertisement.  The ruling overturns a prior Appeals Court decision.  MERS was developed as a way to keep track of the servicing rights on home loans.  Though MERS is not a lender, they foreclosed on properties as an agent for lenders.  The Appeals Court had ruled that MERS did not meet the requirements under state statute to foreclose by advertisement. The decision threw thousands of foreclosures into question and caused many title companies to cancel closings due to concerns about insuring the title on a bank-owned home involving MERS.  But the Michigan Supreme Court ruled that MERS has an interest in the debt and acted properly under Michigan law.

Fannie Mae Wants $7.8 Billion More

Fannie Mae has asked U.S. taxpayers to cover $7.8 Billion in loses.  Those loses are for a THREE MONTH PERIOD from July to September (so you can be sure they'll be back asking for more every three months).  Taxpayers have ALREADY shelled out $169 billion to keep Fannie and Freddie afloat ($112.6 Billion to Fannie Mae).  And in the "Oh no you really didn't say that" category, Fannie's president and CEO Michael Williams actually said "Despite these challenges, we are making solid progress."  You believe him, right?   

Earning Cash With A Side Job

From Yahoo business advisor, 5 ideas for starting a side business:

Social sales. Mary Kay, Pampered Chef, Tupperware, and Stella & Dot allow a flexible schedule and start up can be quick.

Freelancing. You may have a marketable skill that fills a need such as writing/editing, animal care, cutting hair, being a DJ, organizing homes, translation, video production, and mowing lawns.

Online stores. Selling items you make or collect.

Consulting. you may have an expertise that can fill a need. Consulting, tax preparation, personal finance advise, wedding preparations, Internet marketing, computer troubleshooting, public speaking, and interior design are just a few examples.

Teaching. Ideas include yoga instructor, fitness trainer, music instructor, foreign languages, academic tutoring, dance, etc.