Joy Langtry

Loan Modifications: ARM to Fixed and Others

ARM to Fixed Loan Modifications are happening more frequently now that we are approaching the 5-year anniversary of many ARM (Adjustable Rate Mortgage) Loans.  Often, these ARM loans have an initial 5-year period for their introductory interest rate.  So, borrowers with these loans may be requesting ARM to Fixed Loan Modifications from their lenders, and as long as they meet credit criteria, obtain approval.  The benefit for them is that they may avoid future interest rate increases.  Rather than a full refinance transaction, the documents specifically relating to the loan terms are needed, and each lender will likely have a few other pages included.

There are other types of modifications as well as the ARM to Fixed, but this is a trend we see lately, due to the financial climate earlier in this decade.  In general, Loan Modifications will typically include anywhere from 8 to 20 pages, requiring at least one notarization.

The particular Loan Modifications I’ve been assigned have been open-ended as far as the appointment date.  I was asked to complete them within 3 to 5 business days, and arrange the time at the mutual convenience of the borrowers and myself.  The fee I received in these cases was $45, and the appointments all took about 10 minutes with the borrowers.  In one case the borrower received the docs, and in others, docs were sent to me.

One flag here – be sure to be as diligent about communication with these as you are with full loans.  It is appropriate to communicate back to the title company when you have set the appointment, and again after it’s completed, and be sure to complete any required invoicing steps.  Don’t let this slip through the cracks because it’s “small”.

These are sometimes opportunities to meet again with clients you liked from earlier signings. They are so fast and flexible, even if the distance is a bit far, you can possibly combine the appointment with another signing or other errand.

As always, it’s a great idea to include Loan Modifications on your list of service offerings on Notary databases on-line or on your business card.  The more services we offer, the better our ultimate earning potential!