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November 18, 2012

Why you wait for your pay?

Filed under: Entries With Many Comments,Ken's Blog — Tags: , — admin @ 1:27 am

WHY you wait for your Pay?

Regulars on 123Notary.com will recall my thoughts about “do the work now” – get paid Much later (or not at all). In this blog entry I will explore the reason for, and the history of this nearly unique payment morass.

In virtually every other transaction, cash, order by phone or internet; it’s pay first – get later. I tried at Walmart to leave with just a T-shirt; asking the cashier to “invoice me” – it didn’t work. Everyone wants their money first, they deliver the goods second. However, notaries are asked to process edocs, and enclose an invoice; or submit a month end form – for usually much later payment. Why? Well I’m going to tell you exactly why.

First, it’s necessary for http://kenneth-a-edelstein.com to define some terminology. While you often see the term “closer” on your confirmation page or in the docs; most of us are more properly known as “signing agents”. I know, some don’t like the use of “agent”, but just for now please allow me to use that term for notaries who are skilled at processing “loan packages”.

The true “closer” takes risk! They sign off on the completeness of the closing and facilitate the transfer of the property. Risk? – yup, and lots of it. If an item is missed, eg: past due water bill, and the closer missed it – the funds to pay the bill come from the closer’s pocket. I took a course at a local college to learn “the ropes” about becoming a true Closer. The open ended liability scared the poo out of me. There is no one who offers “oops, I missed that” insurance for true “loan closers”. The professor at the school strongly cautioned prospective closers to apprentice for a year or two with a professional prior to striking out on their own.

What has this got to do with notaries waiting for their pay? Bear with me. It’s necessary for me to lay the foundation for what will follow shortly.

Back to the true “loan closer”. They made A LOT of money. Often approaching two thousand on a single closing. Most of the revenue was processing “pick ups” – whereby the closer takes care of some of the “loose ends” involved in the transfer of the property. We all know it is a good idea to be named on the HUD, as disbursements MUST be made promptly when the closing is complete – per Federal law. That’s good for the notary.

Backing up a bit – it’s the Closer who arranges for those checks to be issued to notaries, and, of course many others. With the “purse strings” in hand, the closer certainly made sure that their own considerable fees where promptly disbursed. Thus the closer earned a substantial fee, and was paid upon completion of the Closing.

Seeing the big bucks, title insurance companies brought the formerly “remote” closing function “in house”. However, the notary (signing agent) function still had to be done “remotely” as required by law (unless the borrower went to the title Co.).

However, the “remote notary function” seems to have inherited the “paid after the close” – but without the big bucks that the true Closer earned. As mentioned the Closer took risks, if there was no closing – there was no pay for the closer. Does that sound familiar? “Sorry notary, we earned nothing – you earn nothing, or a pittance. BUT, you never make the big bucks.

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6 Comments »

  1. First of all, I only work for signing companies I know and have worked with before and have built up trust with them both ways or I work directly with a lot of title companies.
    If a new company calls me, I have asked them to pay me on Pay Pal this time until I know more about them. It works 60% of the time. If they say no, I figured I saved myself a lot of “chasing the check” time.

    Comment by Kathy Anderson — November 29, 2012 @ 3:50 am

  2. About six months ago I get a call at 5:30pm to do a closing at 8:pm four counties away so I ask the lady on the other end of the line when will I get paid she replies that they pay every Friday after the closing so not without protest I accept the job. Understand I live in Grove City Ohio and the closing is beyond Dayton Ohio. I hurry home print the docs (120pages total) I get in my mobile unit and head for the Dayton area. When I arrive the borrowers are not at home yet and they end up being an hour late. I do theclosing everything went off without a hitch untill I get a call from the lender to see if I can go to a refinance on my way home and the home owner had the docs. The lender said she would pay for both signings in the same U S mailing. I accepted, got the job finished and said my goodbyes and don’t you know I get another call from the lender wanting me to do another refinance at 2:am for a car note. It was only ten minutes away so I said yes I will and that was it and how do I get paid, she says we cut and mail checks every Friday after the closing” BLA BLA BLA” BTW I was told by the lender that I could “NOT” business cards or ink pens or other advertising items (now she just hit a large nerve) I finished the day/night out went home and crashed. Three months go by I still have not heard from the lender about my pay on any of the three closings, finaly I recieve an envelope in the mail and it has my pay for all three items less $50.00 for leaving ink pens at the first closing I was in RAGE by now. I have been doing notary for well over thirty years now and never have had this happen to me, has anyone else? Besides never doing work for that company again What would you do ?

    Comment by Terry L. Howard Sr — November 29, 2012 @ 4:33 am

  3. I would write them a letter somewhat threatening them that I will get the law involved if they do not pay as agreed and that I will report them to whomever and whatever board I can locate, if they do not cooperate. It seems for the last few years we have to fight for our hard earned money and this is just getting ridiculous. http://www.notarytorontomobile.com; http://www.facebook.com/notarypublictorontocommissioneroaths

    Comment by Rula — November 29, 2012 @ 8:45 pm

  4. Look up the Sherman Antitrust Act. I am not sure if this would pertain to you but it is a start.

    Comment by Debi Langlais — December 9, 2012 @ 4:19 pm

  5. So after reading all of the above, I STILL don’t understand why I have to wait 30 DAYS??? Why can’t notaries be paid same time as Closer?

    Comment by TexasRose — December 20, 2012 @ 6:47 pm

  6. In response to Kathy Anderson – a “Signing Company” is not the “Closer.” These two entities are entirely different. Regardless of what signing company you work for, they are the ones that have to chase down the check from the closers – then they pay the notaries.

    Comment by Erin Roberts — June 3, 2013 @ 10:48 pm

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