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March 16, 2016

Can you send a loose acknowledgment? You should hear the answers

I asked a Notary the following questions.

Can you send a loose Acknowledgement if the Grant Deed you already Notarized and send it had a smudgy seal?

The Notary said, that yes you could. You just attach it to the Grant Deed.
I replied back that if you attach the certificate to the Grant Deed, that it would no longer be loose. It is kind of like asking if a virgin can be sent in the mail and you say — yes, she just has relations with Tim and then you can send her. If the virgin had relations with Tim she would no longer be a virgin just like the Acknowledgment Certificate on the Grant Deed would no longer be loose if it were attached to the Grant Deed. On a brighter note, if Tim were the only lady that the “virgin” had relations with, at least she would not be considered to be “loose” like the acknowledgment whose final words were, “Baby, I’ll attach myself to any document… anywhere… any time…”

Legal or not?
Many Notaries feel that it is fine to send a loose Acknowledgment in the mail. This is actually not legal in most states. Acknowledgments should be attached by a stable to the document they are associated with. If the stamp was smudgy on the initial acknowledgment, some states might allow you to destroy the original acknowledgment and add another non-smudgy one in its place. But, no state will allow there to be two acknowledgments for one Notarization floating around. That is just plain crazy.

California?
California wants Notaries to completely re-do smudgy signings. You would have to go back and visit the signer all over again, get a new signed journal entry, and do the Notarization as if you were doing it for the first time if God forbid — there was a smudge.

Summary
The way to handle Acknowledgments with smudges varies from place to place. But, you need to know what the law says so you don’t do something stupid. Most Notaries that I talked to do not have a thorough understanding of the law about this topic.

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Notary Certificates, Notary Wording & Notary Verbiage
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March 15, 2016

Do you know how to sign Applications? Is it even legal?

In the old days, Notaries did a lot of Refinance signings. Then after the financial crisis of 2008, there were many changes in the Notary world. There was less work at first, and then new types of work sprouted up in the ashes of the lending crash. The new types of work for Notaries included:

Types of financial products
Purchases, Sales, Construction Loans, Annuities, Structured Settlements, Loan Modifications, Debt Consolidations, Reverse Mortgages, and also Applications. Additionally, there have been more VA, FHA, Jumbo, Conventional, Non-Conventional and other types of financial products.

Ignorance can cost you
The problem is that not all Notaries are familiar with all of these financial products, and ignorance can really cost you. The first problem with inexperience is that you might not know how to price particular Notary jobs. If you are doing signings for the elderly, that can take a lot longer. Reverse Mortgages are normally for older folks and it can take up to two or three hours to get in and out. FHA’s involve much longer packages than good old fashioned Refinances. Then there are loan products that I never saw such as Annuities, Structured Settlements, etc.

Loan Modifications
Loan Modifications were a source of legal concern as many of these packages involved suspected fraud. Many states required Attorneys to be present at the signing of Modifications as well. Perhaps the borrowers were getting scammed, but many Notaires were paid on time by Modification companies.

Construction Loans
I remember signing a few construction loans back in the day. There were more packages, but the signer was a saavy business person who had signed these types of packages many times before. He signed so fast I couldn’t believe it. We were done in twenty minutes! Then, there was a signing for a literary type which was a deconstruction loan — just kidding. In Vegas they have demolition loans — anyone seen one of those?

Applications
I cannot comment on whether a Notary can legally assist with applications. That is up to you to research, but many Notaries get large amounts of work in this department and it is good business sense to know how to get this type of package signed!

Your Notes Section
At 123notary, we recommend that you impress the world by telling them not only how many signings you have done, but what types of signings. The longer your list of types of financial products you know how to handle is, the more you will get paid.

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March 8, 2016

The Ones That Got Away

Filed under: Ken Edelstein — Tags: , — admin @ 5:53 am

The Ones That Got Away
It happens to all of us. We put time and effort into establishing an assignment, then it goes poof. Did we do something wrong? Possibly. If someone is fishing for the absolute lowest price for the “equivalent” of what you do; that may or may not be you. But the amount of your fee is not the central theme of this installment. It is the non-price issues that will be explored. So, assuming your fee is reasonable to the caller; why did that one get away?

Excluding walk in situations; virtually all of our notary assignments are initiated by phone or email. Some contacts are doomed from the start. Case in point: this evening I had a caller that needed two signatures notarized. It was for a “kiddie fly” (what I call the notarized authorization statement often required from parents for children to leave the USA). Both had good ID. One of the parents would be present; the other was far away. The flight was for 6AM tomorrow. “I have the ID of my partner and you can speak to and see them via picture phone”. Not an option in NY, personal appearance is always required. Add a bit of pressure: “Unless you do this the kid’s vacation with the grandparents will be ruined, we can’t reschedule and the tickets are non-refundable”. Nope.

Today I also had a “got away” that greatly pleased me. The request was from a distant county, with high tolls and heavy traffic. I goofed. I quoted a fee too low for the effort, I’m sure that pleased them greatly. The assignment was to go there, notarize, return to Manhattan, process an Apostille; then bring the completed job back to the distant location. Making it worse, the initial meeting time would have me traveling in the worst part of rush hour. The delivery trip would have been almost as bad. The good news: we had a conceptual agreement that would be confirmed with a follow up call with exact specifications. They never called back! Hooray.

Both of the above, thankfully, were resolved in the initial contact. Sometimes there are many, many contacts that also result in nothing. I’m starting to feel like a car salesman with an indecisive buyer. Unchecked this can go to ridiculous extremes. Some go back and forth, asking one at a time of their many questions. During slack times I have gone along with these charades. One actually constituted over twenty emails. It appeared that the contact was “pumping” me for procedural information and wished to do it themselves. I don’t like that, certainly not a bit at a time.

There are also requests from the land of Oz. These are the ones that ask for the notary to have supernatural powers. Can you be in my office within the next ten minutes? How come you don’t have an office; isn’t every notary supposed to have one open till 11PM? Please prepare the necessary documents for my divorce in Latvia, in both English and Latvian. Why would 25 notarizations cost more than one, you are already here? Can you open your office a few hours early, as I am working the early shift? The bank notary does it for nothing, what’s so special about you?

It’s silly to lament “the ones that got away”. Of course there are exceptional circumstances that require empathy and “over the top” professionalism – but they are rare. We should limit our acceptance to practical assignments; certainly only legal ones. Many have lampooned the low baller; with their tiny offerings. But, equally, perhaps even more important is the amount of effort that you will have to put into the project. Most charge an additional fee to fax. That usually involves a trip home to the scanner, only afterward can it be shipped. Consider all aspects of the request, even if the dollars are high. Will you get out of it more than you put into it?

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March 6, 2016

Should you send the Fedex right away?

Filed under: Best Practices,Popular on Twitter — Tags: , , — admin @ 11:41 am

I remember out old blog which was a favorite entitled, “Don’t put the Fedex in the drop box.” This article should be entitled, “Put the Fedex in the Staffed Station’s drop box as fast as possible.”

My question that I asked many Notaries was…

A Notary did a signing for Joe. Joe signed all of the documents except for the Flood Disclosure which he wouldn’t sign simply because his lender Chad never got back to him about the document. Joe and the Notary waited for 20 minutes with no return call. So, the Notary loaded up the documents and put it in the Fedex. The Notary is driving away and it is about noon-ish. Should the Notary take the Fedex straight to the Fedex station or wait?

Answer #1.
Most Notaries claim that it is good to hold on to the package just in case the Lender calls. But, if the Lender calls, do you really have time to go all the way back to the borrower’s house to sign a single document and stay on the phone for half an hour? Don’t you have anything else to do with your life? The Lender never gave you instructions to wait, so why wait? Additionally, there are many reasons why waiting could sabotage the loan. 123notary has heard of various situations where a Notary forgot to come to an appointment or drop a package. These include:

(a) The Notary got another rush job at the last minute and forgot all about dropping the package off.
(b) The Notary’s six year old daughter hit her head and he had to come rushing home and forgot all about the Fedex.
(c) The Notary got hit by a car and was so shaken up he forgot to send the package.

In real life, unexpected situations come up more than you would expect. If that Fedex doesn’t get sent out, the borrower could lose his loan and his lock. There is no reason to keep the package. The document that was not signed was NOT A NOTARIZED document. The borrower can handle it on his own.

Answer #2
Drop it off as fast as possible.
The Lender might not like that you didn’t wait. But, why should you let him waste your time unless he is paying for your time. It is the Lender’s fault for not explaining the document to the signer before the signing. It is the signer’s fault for not signing the document. Why are you holding yourself hostage for the convenience of people who sabotaged their own signing? They are not paying you for your delay. Go on and get to your next item of business and let these nitwits deal with their own problem. The borrower’s copies will have a copy of the disclosure or the Lender can email another copy.

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March 1, 2016

State of the Notary Industry Union Address

My fellow American Notaries,
We are living through an extraordinary moment in Notarial history. Technological and social change is reshaping the way we notarize, advertise, drive, and our place in the NotaryVerse. But, as Americans, we’ve been through big changes before in generations past.

Notary jobs no longer pay what they used to pay. American Notaries used to make an easy $125 per signing if they had experience. Now, Notaries are being offered less and less. Instead of weeding out the less qualified Notaries, this price gauging has weeded out the most qualified and desirable service providers in the industry. Despite the problems in the Notary industry, American Notaries are paid considerably more than their equivalents in China, France, India, and other countries where mobile Notaries (and rickshaws) are used. In fact, Notary wages in China are so low, that many Notaries there have to sell fake ID’s just to make ends meet.

The advent of Snapdocs, the Uber of the Notary industry has also contributed to the downward trend in Notary fees, but an upward trend in technology that facilitates the act of hiring and scheduling a Notary. Now with the click of a few buttons, a signing or title company can broadcast a message (commonly referred to as a cattle call) to dozens of Notaries and find one who will take the job.

I would like to take things a step forward and cut taxes for Notaries and their families. I believe that Notaries are working too hard already, and should be rewarded by paying a fair tax.

Additionally, I’ve called on congress to raise the minimum wage for newer Notaries to $63 per signing, plus 11.3 cents per page for eDocuments as well as a 75 cent per nautical mile minimum travel fee, plus a nationwide ban on fax-backs. If you look at what the average service provider in this industry makes — call him “Joe, the Notary,” it is well below what Notaries of your parents’ generation used to make and it just isn’t fair. Notaries work hard, and deserve a fair wage and deserve to not be micromanaged — unless they are brand new in the field or make mistakes.

I want to make admission to Notary college more affordable. Spotting fake ID’s from China 101 is a course every American Notary should take. If Notaries had this knowledge it would make America a better place and the world a better place (unless you work in a fake ID producing sweatshop in Shanghai.)

Unfortunately, as far as the quantity of jobs being offered in the 1st quarter of 2016, it is the worst I’ve seen. However, 123notary is getting roughly the same traffic it did at this time in 2015. The important thing here is for American Notaries to keep the faith and understand that every cycle has ups and downs. What is critical is to keep developing your skill sets, to keep developing your client base, and to buy a higher spot on 123notary!

For all challenges we face, the truth is that no country on Earth is better equipped to handle the future of Notary work than the United States. If we can deal with this temporary and acute shortage of Notary signings, there is nothing that American Notaries can’t do!

.

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February 28, 2016

More on Snapdocs, the Uber of the Notary industry!

Snapdocs really impresses me. They are new, successful, popular, yet everybody I know is complaining bitterly about them. It’s like Uber. You either love’em or hate’em. I was reading a Notary Rotary post where two reps from Snapdocs answered questions. Wow! Such good service! So, below are my comments on Snapdocs.

1. Snapdocs does cattle calls.
This is an automated feature that is convenient for the Title company, but a pain for the Notary. If you answer a cattle call after more than a few minutes have gone by, the job will probably have been filled.

2. Offers are generally low
Offers from Snapdocs are usually not very well paying. On the other hand, this makes it a great opportunity for newer Notaries to put some notches on their belt. I always tell newbies to work for cheap until they have proven themselves with a few thousand signings.

3. Are they scaring away seasoned Notaries?
One Notary on Notary Rotary’s form claimed that Snapdocs was scaring away seasoned Notaries. In my opinion, a system that is optimized for price and convenience is not suitable for an experienced and higher priced Notary. I just hope the good Notaries don’t get put out of business with all of the low fees that have become the norm in today’s Notary industry.

4. But, can you negotiate prices?
Yes. You can respond to emails and make a counter offer. If someone offers you $55, you can say, $155 — take it or leave it. Do you want experience and credentials or do you want to take your chances? In my opinion, Notaries do too much self-pitying and not enough negotiating. Give those signing and title companies a run for their money. Ask for what you’re worth. Our veteran Notary Ken always makes counter offers and demands up front payment on Paypal and usually gets it too!

5. Snapdocs eliminates the middle-man (or woman)
Signing Agents have been dreaming for years of a time when signing companies (who they perceive as being worthless) are weeded out of the situation. Well, now they have been weeded out in this playing field — but, prices are still dismally low. So, the Notaries still lose. But, in my opinion, a Notary who gets paid well earns that pay with merit which includes rich experience, multiple certifications, good marketing skills and businesslike communication habits.

6. Does Snapdocs let Title blacklist the Notaries?
Not exactly. But, feedback about the quality of the work done can affect the Notary’s ranking on this site.

7. Is Snapdocs better than the Notary directories?
In my opinion, Notary directories offer a better quality Notary than Snapdocs, and also offer more in depth information about the Notary.

8. Snapdocs will not help the Notary get paid.
Snapdocs operates for the benefit of the signing service,not the Notary. On the other hand, they don’t charge the Notary. If you don’t get paid, that is your problem. If they did guarantee payment, there would be expenses associated with that which would cut your fee down by 5-15% based on how other similiar models work on popular freelancer sites on the internet.

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February 27, 2016

The Compliance Agreement

The Compliance Agreement
This document is often part of a loan package. While not notarized, “The undersigned hereby agrees to cooperate”. This cooperation includes working with both the lender and the Escrow or “Closing Agent” to facilitate “reasonable requests”. This cooperation is subsequent to the closing, on an “if necessary” basis. Said cooperation includes providing any and all documentation “deemed necessary or desirable”. It is very open ended with an enforcement clause, to be discussed later in this installment.

The affiants to this agreement, often both the buyer and the seller, are obligated to assist, as “necessary”, to complete the transaction. This completion can include verbiage to include the marketability of the loan and/or securing title insurance. They may be requested (really required) to re-execute documents or sign additional documents. They may also be asked to provide previously “not relevant or considered” documents, to facilitate the closing.

Score one for stating the obvious. While researching this blog, one of the compliance agreement documents specifically stated: The sellers are not required to perform duties and responsibilities of the buyer, and the reverse is also understood. As mentioned the responsibilities of the affiants is a bit open ended. They are both required to not only facilitate requests “deemed necessary” but also those “desirable”. An up to date appraisal would certainly be desirable, but it’s not clearly spelled out who would be required to pay if this was requested. Similarly, it’s not clear who would be responsible for expenses to make the loan “insurable”.

While this document is usually a single page; the issues are rather complex. There are four parties involved: The Lender, the Title Co., the Borrower, and the Seller. It’s easy to visualize conflicts developing. The “enforcement arm” is frequently in the last paragraph. This section includes for recovery of all expenses, and lawyer fees, by the winning party if it is adjudicated.

Thus failure to comply with an “it’s desirable” request (demand?) from Title, might result in Title obtaining the item and billing the, for example; seller. Additionally the seller would, if they contest the cost, and lose; have to pay the attorney fees of the Title Company. Quite a lot of responsibility is included on that one little page. Few bother to read it. It’s generally explained (not by the Notary!) as agreeing to resign a lost document; but it really comprises much more.

I often wondered why such a “strong” document is rarely if ever notarized. Perhaps the public perception of notarized documents being “binding” and others “contestable” is in play. Whatever the reason, all affiants should be aware of the broad scope of the Compliance Agreement. It’s more than just allowing clerical errors to be corrected, much more. I have heard it explained away as only allowing for the correction of typographical errors. “If we put the comma in the wrong place and say you only pay fifty cents a month, not five hundred a month; we are allowed to correct that typo”. Yes, it’s that; but also much more.

How does this apply to the notary? From my prospective the issues are so broad, vague and potentially of great economic effect – I would not attempt to “explain” it; not a bit. If asked a question related to the Compliance Agreement, for me it’s an immediate call to the Loan Officer.

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February 26, 2016

February 24, 2016

Notarizing John W. Smith

Recently, I have been calling many notaries over the phone and asking them Notary questions. The Notaries on 123notary typically are fairly strong about signing agent knowledge, but weak on basic Notary skills. Many Notaries are unaware that you cannot Notarize someone unless you personally know them (allowed in some states) or can prove their identity based on satisfactory evidence. The state laws do not always give case studies of tricky cases as the states don’t make it their business to make sure Notaries are understanding or obeying the law.

The example I give is:

You are asked to Notarize a person whose ID says John Smith. The document says John W Smith. Do you Notarize based on the name on the ID, the document, or cancel the signing.

The types of answers I get are.
(1) You always notarize based on the name on the document because that is the name on title.
Commentary: Unfortunately, the Lender won’t be able to sell the loan if the name notarized doesn’t match the name on the document. However, your commission can be revoked if you get caught notarizing signers based on names not documented in their identification. If the ID says John Smith, you cannot notarize a longer name variation in any state that we have heard of.

(2) Get a 2nd ID.
Yes, in real life, you would ask for another ID or perhaps try to get some credible witnesses if your state will allow for that. However, in our question , it is multiple choice, and asking for a passport is not one of the choices. This error falls more in the category of listening and following directions which is crticial in any profession.

(3) You can notarize a name that is matching or shorter than the name on the document.
Commentary: WRONG. You got the right rule, but in reverse! You can notarize a name that is matching or shorter than the name on the ID — NOT the document. If the name on the document is longer than the name on the ID, then you have not identified the signer as the person named in the document.

On a more humorous note. I think it would be funny if one of the Notaries I called was named John Smith. On the other hand, we have a customer named Pocahontas. She’ll probably laugh when we talk about Notarizing John Smith. But, don’t worry, OUR Pocahontas is over 12 years old — or at least that’s what her ID says!

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February 23, 2016

The Closing Disclosure

Notaries have become moderately familiar with the new Closing Disclosure. I want to stress some important points about this document that you should memorize. I also added this content to the 30 point course for future reference!

1. The Closing Estimate
Previously there was a document called the Good Faith Estimate whose current replacement would be the Closing Estimate. Although these two documents are not even close to being identical, they go over the estimated costs of the loan among other information.

2. The Truth in Lending
This is now an antiquated document. The Truth in Lending had some bizarre and unhelpful verbiage about the prepayment penalty. It said you, “will, won’t or may” have a prepayment penalty. The Closing Disclosure states if you will or won’t but omits the ambiguous word, “may” from the document.

3. The APR
In addition to going over the APR, there will be a new figure discussed on the Closing disclosure called the TIP which is the total interest percentage.

4. Taxes, Insurance, Escrow Fees
Estimated escrow costs, insurance, taxes, servicing, assumption, and appraisal costs will also be covered in this new and exciting document.

5. The property address
Many loan signing courses claim you should look for the property address on the Deed of Trust or Mortgage. You can, but it is also on the Closing Disclosure on the upper left corner.

6. The Loan Amount & Rate
This is also covered on the upper half of page one.

7. Fees associated with the loan
The Closing Disclosure replaces the TIL and the HUD-1 Settlement Statement. So, items from the Settlement Statement such as fees or costs associated with the loan will be covered on this document.

8. Calculating Cash to Close
This is a very practical section that covers total closing costs, closing costs financeed, down payment, deposit, funds for borrower, seller credits, and adjustments. The bottom line in this section is the cash to close total amount.

9. Summary of Transactions
The sale price of the property, closing costs, HOA dues, deposits, loan amount, sellers credit, rebates, and local taxes are all part of the accounting spreadsheet in this section.

10. The additional information section about the loan
This section covers other specifications about the loan such as whether or not assumption is allowed, if there is a demand feature, negative amortization, late payments, partial payments, escrow accounts, and more…

11. Next, there is a basic loan calculation similar to what the TIL had with the total payments, finance charge, amount financed, APR, and the new figure which is the TIP.

12. There is a section listing other disclosures which will list the appraisal, contract details, liability after foreclosure (keeping it positive), refinance, and tax deductions.

13. And last there is contact information of the Lender, the Real Estate Brokers, and the Settlement Agents.

Sign below.

——————————————— ———-
Applicant Signature Date

Eventually I will create some test questions out of this material. I already have one, but I will derive some others as well.

.

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