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October 18, 2013

Cross Out and Initial

Cross out and initial

What if you are in the notary business and you just made a mistake, or someone else made a mistake in a document. Simple, just cross out and initial, right? Maybe not. Putting aside the questionability of the legitimacy of a document with cross-outs, the future document custodian might not like cross-outs.

Picture yourself as a lender. You are having a loan signed, so you can sell the loan to yet another bank. That other bank doesn’t like it when people cross out and initial information on their loan documents. It looks sloppy and unprofessional to them. So, as a notary, what do you do when there is a problem with a document? You ask your contact person what they want to do.

They can either redraw the document at great expense, coerce the borrower to sign the document “as is”, or have you cross out and initial. Let your contact person make the decision so they get in trouble — not you!

Redrawing documents means that you will have to wait for the new documents to be typed up, sent via email or FedEx, and then you need to make a new appointment with the borrower on a subsequent date.

You might also like:

The 30 point course section on cross-outs
http://blog.123notary.com/?p=14406

Signing agent best practices: 63 points
http://blog.123notary.com/?p=4315

Cross-out happy; Not a good idea
http://blog.123notary.com/?p=4449

Industry standards in the notary business (covers cross outs, initialing, and more)
http://blog.123notary.com/?p=4370

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October 8, 2013

Interview with Title Source

Me: “Many of our notaries like working with you. Can you tell me why? What do you do that is so good?”

Zee: “Notaries are intrigued by our system, our technology. We try to put it in order in our edocs. About 95% of our closings will require notaries to print out. We get things done in a timely manner. Our website is easy to logon to and provide a service. We also try to give notaries work within their area– within 20 miles.

I do instruct notaries that they can contact our scheduling team and get them to the lender as needed if there is an issue at a closing. Someone is always available. I do ask notaries not to discuss any specifics of docs with our scheduling team.

We give notaries a score 1.5 to 3.5. 1.0 is the best. If they earn a good score they get more work or a raise. Their score includes completion time–including dropping the package at FedEx; quality of work: if there is a signature missing, that would be a defect. Confirmation-turn time is also important. The fee they charge is also part of that. A good fee for us is $65, and another $20 for edocs. A refi might be $90. I pay my national companies $125 for a signing; I would also pay that to a good notary. I have to have a loan assigned to a notary within 2 hours. I let the notary tell me what fee they want. I can’t guarantee them they will get many orders at, say, $125. But if I build you a profile today, I will put you at the top of the page. Our site will help you build your profile. There is no fee to do that. We call those who say $85 before those who say $125.

When we look on 123notary we may look by zip code or by city, but lately we are limiting the notaries to those who are NNA or Lexis-Nexis background screened. Those background screenings are the best.

We give instruction sheets. If there is something specific the client wants, we put it on the instructions.

We usually do not hire notaries who have fewer than 2 years of experience (fewer than 500 loans). We absolutely would hire a new notary with experience in a financial area. Any experience with the mortgage industry. Sometime real estate people have good experience. We close loans all over the country. We have a quiz or test that we give first if a notary wants to sign up– about 10 questions. You have to listen to something before– various questions about situations: they look at a video (2-3 minutes) and then answer questions. They have to get all the questions right. ”

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You might also like:

Interview with Timios Title
http://blog.123notary.com/?p=6718

Interview with a Title Company
http://blog.123notary.com/?p=3724

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June 6, 2013

Industry Standards in the Notary Business

Many notaries claim to understand the loan signing business well. But, there are many things that even experienced notaries don’t know. Here are some industry standards to think about.

(1) Cross outs
Some lenders allow them while others don’t. As a best practice, avoid crossing anything out unless you have gone through all other recourses without any luck. You should ask your contact person if they think it is okay to cross-out before doing so. If you can’t reach your contact person, see if that company allows cross outs. Remember, even if a company allows cross outs, it can compromise an entire loan and cause a redraw. So, don’t be “Cross-out-happy”.

(2) Initialing
This topic is not well taught, but really matters. I have received instructions that are identical from two unrelated parties. One was a processor, and the other was the owner of a signing company. Both instructed me that if a surname is spelled incorrectly in the signature section of a document, the initial goes UNDER the name. The processor noted that it should ideally go under the last several letters of the surname. Why? The processor or quality control people involved in the loan need to type in the corrected version of the name, and if you put initials where they are going to type, they will run out of space. This is a practical consideration and not a legal one. Initials go UNDER, so that retyped names can go to the RIGHT. This is a test question by the way.

(3) Order of documents
Most companies like documents returned in the same order they were submitted. Some are more flexible than others about this, but it is easier and more organized for them. That way they will know right away if they are missing something. Checks or notes should go on the TOP of the package and ideally attached to an 8.5 x 11 document so they don’t float away if unattended. Gusts of wind and careless coworkers walk by, bumping into things, and sending loose documents flying. I remember a client who lost a $20,000 check that I specifically remember putting in the package. Hmmm. Be careful — I am!

(4) Unsigned documents
If a borrower won’t sign a document, it should be returned at the TOP of the package. You don’t know who will open the package. Often it is a secretary, assistant, co-worker, or someone other than the contact person. If they don’t realize immediately that there is a problem, then there will be a delay fixing the problem. Remember — these folks are multitasking, and your loan is not the only one. Although you told them in a phone message that there is a problem, they still need the problem to be in their face.

(5) Hustling the borrowers
If a borrower doesn’t want to sign a document, don’t start off by pulling a “used car salesman” tactic. Call the contact person you have, i.e. Title, signing company, lender, etc. Leave a message, and allow 20 minutes for them to call you back. Call them once more if you don’t hear from them and wait another five minutes. If you still don’t hear from them, then you can tell the borrower about their three day right to cancel, and how if they don’t sign the document they might be facing a redraw. Remember, don’t start off by twisting the borrower’s arm — that is a last resort and is very rude and unprofessional to start off that way.

(6) Fedexing back the documents
If there is a problem communicating with the lender or other contact person, don’t delay Fedexing documents back unless instructed to. Many signers feel that it is “professional” to hold on to the documents until the next day until right before the Fedex deadline. Guess what, you might hear from the lender with instructions or you might not. But, what if you get busy and FORGET to dump the Fedex? What if you or a family member has a health emergency and you can’t drop the Fedex? Do you think of these things? Get rid fo the Fedex THAT NIGHT into the drop box at a staffed Fedex station if possible even if the staff are no longer there. It will get picked up. Remote drop boxes are sometimes risky, but boxes at Fedex stations are very safe. Think when handling time sensitive documents.

(7) Emailing documents back
If you get e-documents and have a question, don’t scan and email a document back. That is NOT secure. A hacker could do identity theft. Lenders are very uncomfortable with the idea that a notary would compromise their information. Use a phone or a fax, but not email for sharing information about the borrower. Remember, that when you received the documents, the portal was PASSWORD protected.

(8) Instructions
Many lenders have a letter of instructions when they assign a loan. The industry standard here is that there is no standard. Some lenders give written instructions while others don’t. Each one wants something different. Follow instructions to a tee, and you will be first on their list.

(9) Explaining things to the borrowers
If you are NOT in an attorney state, you can explain generic information about documents to the borrowers. But, do not give specific information about their loan, specific answers to questions about their loan, or commentary particular to their loan. Not allowed. Don’t even tell them their Rate. Just point and say, “Is this what you asked about?”. That way you are carefully refraining from telling them anything which they could accuse you of misstating after the fact.

(10) Confirm the completion of the signing with a tracking #
When you are done with a signing, leave a message with the Fedex tracking number.

(11) Title & Escrow prefer blue ink
I always used black unless specifically asked to use blue. But, many lenders nationwide prefer blue ink so that they can identify an original from a B&W copy immediately.

(12) Take the Fedex to a HUB.
Remote drop boxes are a recipe for disaster. Title will be all over you if the documents don’t get back on time. Find out where all of your local Fedex stations are. You could lose your best client if the documents don’t get back on time. Get a receipt too and save yourself a lot of problem. Not an industry standard, but it SHOULD BE.

(13) 40% of signing companies say: Don’t call the borrowers.
If you don’t call the borrowers, they won’t know that you are coming. Half the time, they won’t be ready for you either. So, unless you are absolutely sure that the company will pay you if the borrowers don’t sign, then think twice.

(14) Sign exactly as the name is printed
What if the identification doesn’t have the same name variation? Your Secretary of State might not take kindly to the fact that you notarized them under a name that is substantially different from what their ID reads. Proceed with caution and use a Signature Affidavit if necessary. Make sure that middle initials are clearly signed too so that the lender can sell the loan. If any part of the signature looks like it is omitted, reselling the loan will be a problem.

You might also like:

Notary Public 101 – a free notary course
http://blog.123notary.com/?p=19493

Fraud and forgery related to the notary profession
http://blog.123notary.com/?p=2294

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April 20, 2013

A detailed look at the NINJA course

Filed under: Ninja Theme Articles — Tags: , , — admin @ 8:00 am

We have a new Elite certification textbook that accompanies the elite test. We will soon be using a 30 point test to evaluate the skills of our higher level notaries. But, what is this new textbook like? The ORDER of the information is subject to change as we re-edit the course and add content later on.

119 pages of riveting information!

This course integrates ancient Zen Buddhist philosophy, Ninjutsu strategy, and exciting stories with higher level notary & signing agent knowledge for the refined notary public! Here are some of the topics covered in the course.

(1) Presentation
Learn the art of interacting with prospective clients. Learn what to say and what not to say. How to answer questions gracefully, and how to stand your ground. Show your knowledge without seeming like you are trying to. Operate like a professional and negotiate like a professional.

(2) Strategy
Learn which type of advertising pays off and which should be avoided. Which certifications to get and which to skip. How to craft your advertising for maximum results; Which additional services to offer such as Apostilles and Livescan; How to choose your clients well; Picking company names; Contracts. E&O insurance; Getting paid; Handling difficult companies; Hiring other notaries to expand your empire; Handling low-ballers with ease; Marketing with Facebook and Web Sites; Researching companies; When to say no;

Scheduling strategies: Learn about the

Timed appointment strategy
The spring-it-on-ya strategy
The no surprises strategy
Business models that influence scheduling strategy
Dealing with late e-documents
End of the month scheduling strategies
Beginning of the month scheduling strategies
Tight scheduling strategies
High-brow scheduling strategies

(3) Business analysis
Advertising allows you to pick and choose; Analyzing where your calls are coming from; Assessing the companies you work for; Late Documents; Dealing with cancellations; Dealing with late payers; Managing contacts; Optimizing your client base; What do the statistics that 123notary keeps really mean?; How well do you communicate and how does that translate into clicks?

(4) Mastering the ancient art of the notes section
Which adjectives help, and which hurt? Does mentioning years of experience help? Which quick facts will win you clients and which are a waste of time? Overall recommended structure of a notes section; Analyzing your best selling features; What not to put at the top of your notes section; Expressing your personal style of doing business; 19 examples of great personal information used in notes sections; Specialties expressed in detail; How to use bullet points for your additional information; Where do you write about coverage areas, and how detailed do you get? Radius verses counties? Closing statements — call me whenever you are ready! Spelling and mistakes; Example of a bad notes section; Example of a nearly perfect notes section; Commentary on 16 notes sections; Selling features compared in detail;

(5) Miscellaneous points
Smelling good; How to dress; Calling people back; Professional answering machines; Company names; Complaining; Asking too many questions; Call back etiquette; Asking about specifications before price; Negotiating with people who won’t meet your fee; Evolutionary path to success; Charge less to get experience; The close job strategy; MOBILE OFFICES; Don’t call until the e-documents are ready; FULL-TIME or PART-TIME; 123notary’s 30 point test; Last minute appointments; The A list strategy; Precautions; Embossing; Journal thumbprints; Answering the phone at signings; Refining your notes; Dual state commissions; How many certifications; Does Facebook help; How do you let people know you are a notary; Can you afford to be expensive; Get reviews or perish; Are you available enough; Do you keep all of your paperwork; Emergencies are where you shine; Errors with bad seals; Showing up late; Complaints; Wrongful complaints; Rebutting complaints; Being selective about working for companies with potential.

(6) Zen and the art of teaching others to be on your team
Master the ancient art of: Selection, training, scrutinization, and comparison.
Choose people with the right: Attitude, pre-existing skills, ability to learn, reliability, and personability

Where do you start training? Scrutinizing the work of your new notaries. Comparing them to your other trainees.

(7) Comparing notaries
People change over time; Examining your local list of notaries to see the differences in each service provider; Elite certification; Skills verses presentation; Online presentation verses life presentation; Thinking about comparisons while you are working; What did you forget to think about?

(8) Impressions, dreams and nightmares
Where the money really is; How long does it take to do each type of signing; How do you analyze traffic; Should you charge by the minute; How much ROI do you need on your advertisement; Making an impression; The borrower comes first; Meeting at a nearby cafe; Cancelling nightmares before you get involved; What to know about a culture so you don’t get in trouble; Fedex and drop boxes.

(9) Following directions
When to call the loan officer; Sample questions; When not to coerce the borrower into signing; When to continue the signing; Listening exercises, communication exercises, following orders without a fuss.

(10) Notary knowledge revisited
Acknowledgments discussed in detail; Jurats; Official wording and cross-outs; Loose certificates; Backdating; Document dates verses notarization dates; County recorders & recorded documents; Copies of a document; The names must match; Credible witnesses; Errors on the Acknowledgment; Oath wording; Signature by X; Journals; What the OPTIONAL information section is for in Acknowledgments & deterring fraud; Embossers; Thumbprints; Seals; 10 Grant Deeds in a single session; Notary Fraud; Notarizing the elderly; Notarizing a dead person; The 4 parts of an Acknowledgment certificate; Misdemeanors.

(11) Signing Agent knowledge revisited
Understanding: The 1003, The 4506; Apostilles, Attorney States; Changing a name on Title; Checks in packages; Cross-outs; The Deed of Trust; Elizors; Identity Affidavits; The HUD-1; Initials go where? Letter of instructions; The legals; Maiden names; Prepayment penalties; The Right to Cancel; Rescinding; The security instrument; Signature Affidavit; Spousal signatures; The Subordination Agreement; Thumbprints revisited; The three magical phone numbers; Signature variations; Witness states; When to call the loan officer; Witness closings; Documents that are typically notarized.

(12) The APR & First payments
Yes, an entire chapter about the APR in detail. Learn typical incomplete descriptions of the APR that even the most experienced Loan Processors, Title Agents, and notaries use on a regular basis. Learn a professional definition and learn all of the components that go into computing the APR one by one. Show the world how knowledgeable you really are!
When is my first payment due.

(13) Interviews with our finest notaries and title companies
We get amazing points of views and endless new information by getting input from others in the industry. And then we share it with you on the forum, blog, and in our courses! We interviews many title companies. Many of these companies will be working with us on crafting and endorsing some very relevant signing agent questions. Notaries often ask why it is important for them to learn particular facts. But, if a title company who hires notaries and pays well tells you that you better learn it, then there is no excuse not to learn it,right?

We have some information from Title companies as of April 2013. We will be adding more information every month including statements about things that notaries did wrong that caused a lot of trouble. We will also be adding multiple choice questions endorsed by specific Title companies over time.

The interviews with the notaries this time were about topics of concerned to regular notaries. How do you handle low-ballers? How do you handle people who don’t meet your fee? What is your best attribute as a notary? What made you become a notary? Could you describe your evolution in business and how you became successful? Hoe do you introduce the documents and do your loan signing presentation.

The answers given by the top notch notaries interviewed were truly inspiring, unique, and fascinating. You will love this section the most of all the sections partly due to the great information, and partly because it is the most light hearted section of the course.

(14) The 30 point test
This section goes over the 30 point test. Notaries who pass this grueling and difficult test can elect to have their scores published on their listing. Test topics will include not only notary and signing agent competency, but other areas as well. We learned that following directions and communicating are huge problem areas even for the most experienced notaries, so we will be focusing on those during the test. The test will be timed and might be over the phone or online — or both! Retesting will be allowed, but we do not know what the retesting fee will be. Purchasing the Ninja course / Elite certification gives you one chance at the test providing you take it within (60) days of your purchase date. Good luck!

(15) Apostilles and Loan Types
Learn what our best notaries have to say about Apostilles, Authentications, FHA, HELOCS, Investment loans, Loan modifications, Purchases, Reverse Mortgages, VA loans, and more!

Thanks for your interest and ENJOY our Ninja course!

You might also like:

Notary Public 101 – a free notary course
http://blog.123notary.com/?p=19493

Unique phrases from the Ninja course
http://blog.123notary.com/?p=14690

Elite certification will benefit you for the rest of your life
http://blog.123notary.com/?p=20770

Signing Agent Best Practices: a 63 point guide to being the safest and most thorough notary.
http://blog.123notary.com/?p=4315

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April 14, 2013

Minimum Competency Test Study Guide

Filed under: Loan Signing 101 — Tags: , , — admin @ 1:21 am

We really want all of our notaries on the site to pass our certification test. So far, roughly 1700 people out of 7000 on 123notary (March 2013) are certified or elite certified by 123notary.com. The others are not, and they are not interesting in paying for any study guide or tests. So, my solution is to offer something more basic that is FREE.

We will have an online test eventually for minimum competency. In the short run, we will do an over the phone test. We don’t even have the programming for an icon for the minimum competency, but we will have one soon. In the future, we will set a requirement for how soon you have to pass our MC test to stay on the site. But, for now, there is no rule — only FREE study materials.

Here are the topics we are including in this test:

(1) Confirming the signing & confirming identification
Many signing companies do not want the notary to confirm the appointment. However, if you don’t, then the borrowers might not be ready for you when you come. If you have a busy night of signings, you can not afford to be kept waiting. Additionally, if a non-borrowing spouse is on three or four of the documents (which is typical), you need to make sure that they are there, or else you might not get paid. Be careful of companies that don’t want you to confirm unless they have a spotless payment record with you and on 123notary.com/s (i-phone accessible list of signing companies with reviews).

When confirming a signing, introduce yourself and let them know that you are the notary. Let them know what time you are going to see them, what their NAMES are on the documents, and WHO is required to show up.

Example.
Notary: Hi, my name is Charles Notarinsky, and I will be your notary public this evening. I will be showing up at 6pm. Peter J Selinsky, and Jane Doe will be signing documents this evening. Will both Peter and Jane be able to be at the signing at 6pm? Additionally, may I ask if Peter’s identification has his name typed exactly as Peter J Selinsky with the middle initial J, or a middle name starting with the letter J?

Borrower: Why do you care?

Notary: Legally, I will not be able to notarize Peter’s signature if there is no middle initial or middle name beginning with a J in his identification document. Additionally, I need to make sure that both signers have CURRENT government issued photo-ID.

Borrower: Oh, I didn’t realize that. Hmmm, let’s see. Yes, my ID is a current California Driver’s license expiring in 2017 and has the name Peter John Selinsky. It looks like we are in business. Jane’s license also has her name as Jane R Doe which is longer than the variation on the document. That is okay, right?

Notary: Longer on the ID works — shorter doesn’t. We are in business. See you at 6pm, and in the mean time — cross your eyes and dot your tees. See you soon.

Note: Some states will allow an expired ID if it was ISSUED within a specified number of years.

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(2) What to say and what not to say
(a) Once assigned a signing, proceed to the signing at the appointed time.

(b) Don’t park in the driveway as that is considered rude — unless you have permission to do so. Don’t ask permission to park in the driveway unless there is a problem parking on the street. If the borrower has a one mile driveway that goes up a steep hill, or lives in a condo complex with assigned parking — ask for help.

(c) Don’t call the borrower a customer or client. The Title company is the end-user here hiring the signing company that hired you. You are the notary signing agent and they are the BORROWER.

(d) Answer the phone stating your name. Don’t say, “Hullo” and keep people guessing as to your identity. First of all it makes them ask who you are which is an unnecessary and aggravating extra step. Second, it is not professional. Third, they might confuse you with your daughter and start explaining the loan process to your daughter.

(e) Don’t let other people answer your business line. If your daughter uses the same line, then she must introduce herself when answering the phone.

(f) Don’t have background noise when answering the phone, and if there is noise, then apologize for the noise and move to a quieter location.

(g) Don’t answer the phone only to tell someone that now is a bad time to talk. If now is a bad time, then don’t answer the phone. If you answer the phone, give people at least 90 seconds of your time out of courtesy.

(h) Think twice before answering your phone at a signing. If you don’t, then you might miss the opportunity for your next job. If you do, then you will be being rude. Weight the factors before you answer your line.

(i) Tell the borrowers at the BEGINNING how long you can stay. Tell them that this is a signing appointment, and that if they need to read everything in detail, that they are welcome to read after the signing, and that they have (3) days to rescind if they don’t like what they read.

(j) This is a business meeting, so don’t talk about politics or religion as that might offend people. Even talking about the weather is off-topic. Your job is to get in, sign the documents, and get out to your nearest Fedex station as soon as possible.

(k) No drinks on the table — ever

=================================

(3) Signing as printed
Borrowers must sign their name exactly as printed — unless the lender or your contact person specifies otherwise.

If the name on the document doesn’t match the identification, then legally you can not notarize them under that typed name. In such a situation, consider using the Signature Affidavit to document the other names the person goes by and signing as the identification reads. In this situation you have a choice between satisfying the LOAN OFFICER, or your state’s Secretary of State. The lender can not put you in jail, but the latter party can. The law takes priority in this case.

If the signer’s name is James J Johnson, then they sign James J Johnson, and the middle initial J should ideally show up clearly. Otherwise the lender will have trouble selling the loan to a third party. Please take this into consideration as most loans are sold.

=======================

(4) When to call the Loan Officer, Title or Signing Company
If the borrower has any SPECIFIC questions about their loan, call the Loan Officer or whomever you have been instructed to call. If your appointment is under time pressure because you have to go to your next appointment, let all parties concerned know that you have to leave at 8pm whether their documents are signed or not. If you are knowledgeable enough to answer general types of questions about documents, you might consider answering them yourself unless your state has a law against notaries opening their mouth such as in Attorney states.

If the your contact person(s) is/are not there, then leave a message and wait 20 minutes for a return call. If you don’t get a call back, then leave another message and wait another 5 minutes before you give up.

========================

(5) Your job is not to coerce
If a borrower doesn’t want to sign something, call the lender or your contact person. If you left a message and they don’t call back, don’t take matters into your own hands until after you called twice leaving the appropriate amount of waiting time between both calls. If you don’t hear back after the second waiting time, then explain how the borrower has three days to rescind and that they can talk to their lender during those three days to have the situation explained to them. Additionally, explain that their loan might not fund if they don’t sign.

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(6) Reading instructions
Many loans come with an instructions sheet called a letter of instructions. Read that before doing anything. Take note about oral instructions too. Each lender has their own rules. It is your job to follow the rules. Some lenders want you to call them about any little thing. Others allow cross outs. A few don’t want you to confirm the signing. Many want you to break the law. Don’t break the law — but follow all legal instructions. By the way, if you don’t know your state’s law, then you won’t know if you are breaking it, and you can end up in court or jail very easily. Know the law!

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(7) Following instructions
A lender named Chad assigns the notary a signing. Chad says that if there is any problem, to call him at 333-333-3333 immediately, otherwise you are fired. The notary goes to a signing for Joe. Joe gets half way through the stack and finds that he doesn’t like the XYZ document which is not notarized. Joe says that he refuses to sign. The notary calls the lender and gets, “Hi, this is Chad, I’m not here right now…”

Q. What is the next thing that the notary should do?

A. Leave a message and wait for a response. In the mean time, don’t twist the borrower’s arm into signing.

=======================

(8) Listening and answering questions
I ask notaries questions, and it is like pulling teeth to get responses.

Q. How many loans have you signed?

A. I have been signing loans for three years… actually, three and a half years.

Q. I think you didn’t understand the question. How many loans have you signed?

A. Oh, well, I do about five loans per week.

Q. I think we are having a communication gap, how many loans have you signed in your career?

A. Hmmm, I never thought about that.

This is an easy question, where the notary is really testing the signing company’s patience.

Q. What are your hours of operation?

A. Well, I’m flexible

Q. I’m sorry, but that is not an answer. I don’t know what flexible means. Please tell me what hours you are available to work.

A. Well, I start at 8am.

Q. Thanks for the starting time, without an ending time, I don’t know when you can work until, and this is incomplete information

A. Well, it depends.

Q. You are not being helpful. Please just tell me what hours you are generally available for signing work.

A. Hmmm, I guess from 8am until 10pm, unless my daughter is staying late for softball practice in which case only until 9:30pm, and then if I’m feeling tired then perhaps 8:45 pm, but then I am rarely tired, and then…

Q. I’m sorry, but I am filling in a form that has room for numbers — not stories. Do you have an ending time? If not, then I have to remove you from my list permanently.

A. Just put 8am to 8pm.

Q. Wouldn’t it have been easier for both of us if you had just started out saying 8 to 8? It was like pulling teeth to get a simple answer from you.

Many notaries cannot answer simple questions. If they are this incompetent about answering simple questions, how will they handle complicated snags in a signing? Will they do something that endangers the loan out of stupidity? I think we all know the answer to that question.

Q. How would you explain the APR to a non-borrowing spouse?

A. Hmmm, well in my state, the non-borrowering spouse is not responsible for signing the documents, except for the …. (long explanation)

Unfortunately, this notary is anwering a DIFFERENT question than the one asked. They will most likely get fired even though they are very knowledgeable. Signing companies need notaries who follow instructions and answer questions — preferably the same question that was asked.

=======================

(9) The RTC
For a non-investment refinance, the borrower has (3) days not including Sundays and Federal holidays to cancel their loan. The day of the signing is NOT included in counting the days. If you sign on a Saturday, then Monday is day one, Tuesday is day two, and Wednesday at 11:59pm is the deadline for cancelling the loan in writing by the acceptable stated methods (stated in the Right to Cancel document). Sometimes the notary is expected to write in the dates, or change the dates in the Right to Cancel. If you make a mistake you could ruin someone’s loan. Learn how to count the three days, and memorize your Federal holidays in sequential order. Also, some lenders do not allow CROSS OUTS in the right to cancel, so make sure you know what you are allowed to do or not allowed to do.

If the borrower signs where it says, “I wish to rescind”, then don’t cross out, just grab a borrower copy and start all over. WATCH signers, as they seem to sign in the wrong place a lot these days.

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(10) Journal entries
Not all states require journals. However, your journal is your only evidence if you should ever have to go to court. Keep a THUMBPRINT of the signers in your journal just in case anyone suspects fraud. A thumbprint is the most potent piece of evidence about the identity of the signer. Keep in mind that identification documents can be forged. Additionally, women change their hairstyle a lot, so you might not be able to recognize them in their ID photo. Some states require journal thumbprints for documents effecting real property and powers of attorney. Since the notary’s primary job is to identify signers, why not use the most effective means of identification as a supplement to the identification? It is fast and easy and could keep you out of court!

Q. If two signers are signing three documents each, how many journal entries do you need?

A. A separate journal entry for each document per person, which equals SIX journal entries. Each entry needs to be completely documented and signed by the signer.

Please record any unusual circumstances of the signing in your journal if there is any blank space. Sometimes there is an additional notes section. That will be your evidence in court. So, write that information with the intention of understanding what you were talking about when you read it five years after the fact. Your memory will fade, so be as thorough as possible and include all details that will job your memory.

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(11) Smudgy seals
New notaries don’t understand that certain documents get recorded with the county recorder. Each individual at each of the USA’s different county recorder offices has different standards. They have the right to be very picky if they like. They might not like cross outs, light seal impressions, seal impressions with missing corners, or smudgy seals. Be careful when you are notarizing a recorded document. If you smudge your seal, you can use a loose certificate, and attach it to the corresponding document. The lender might not like that, but the law likes that and recorders will not complain about that.

Deeds, Mortgages, Subordination Agreements, and documents with the term Lien are likely to be recorded in addition to some Powers of Attorney.

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(12) Cross outs (Acknowledgments)
If there is wrong information on an Acknowledgment certificate, what do you do? Out of state wording that is not acceptable in your home state? Wrong information in the Venue such as a wrong county? What if the form says that two signers are showing up, but only one actually shows up? Should you cross out or attach a loose certificate? You can notarize a document twice if you have two journal entries in case you want to do both. If you add a loose certificate, make sure you LABEL the additional information section completely. A fraud could reattach your certificate to a DIFFERENT document signed by the same signer if you don’t document the name of the document, number of pages, document date, and any other information that your loose certificate might indicate.

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(13) Don’t leave unsigned paperwork with the borrowers
If the borrower won’t sign one or more papers, then load it up into the outgoing Fedex. The borrower’s copies are for the borrowers, not the lender copies.

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(14) Confirmation of completion
Confirming the signing before the signing
Just say, “Hi this is Frank, I completed the signing for the Mazzingos at 14 Cherry Lane, Twingsboro, MA. The Fedex tracking number is 3333-3333-3333, I repeat, the Fedex tracking number is 3333-3333-3333. Call me if you have any issues.

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(15) Don’t backdate
If asked to put a date on a notarization different from the date you went out — that is illegal — just say no!

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(16) Never use white out

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(17) Fedexing the documents
As documents are time sensitive, get them in the Fedex drop box as soon as you can (or drop box of whatever courier you are using). If you need to hear back from your contact person concerning a signing, don’t delay getting the documents back while you wait, as you might endanger the lender from getting things processed before the deadline. If you wait until the next morning to send it back because you are waiting for the signing company to call you, you might get busy the next day, and forget to put the Fedex in the drop box. You might miss the deadline, the documents would get back late. The borrower could even lose their lock in the worst scenario and sue you for $20,000. Don’t play games with time sensitivity.

Also, use a drop box at a Fedex hub, or manned station. Drop boxes in remote areas are not always picked up on schedule, and you will be in big trouble if they are not picked up. Know your local stations by memory so you know where to go, and don’t procrastinate. Get the documents in the box the night of the signing. Don’t wait until the next day unless you are forced to.

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(18) Don’t send loose certificates in the mail

Lenders are notorious about asking notaries to send loose certificates in the mail. That is illegal and can be used for fraud. If asked to do this, just ask for them to get the original document back to you with the original certificate. Then, destroy the original certificate and attach a new one. You do not need to see the signer again, just as long as there is only ONE well documented certificate floating around — attached to the document in question. Make sure to label the certificate with the document name, document date, number of pages, and any other identifying information you can think of to prevent the reattachment of that certificate to some OTHER document which would be frauduluent.

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(19) Additional visits
You might be asked to make an additional visit to a borrower. Make sure that the company who hires you has a good payment record. You are much LESS likely to get paid for a second visit than you are for a regular signing as it might not be in the company’s budget. Be careful. On the other hand, companies will be very unlikely to use you in the future if you don’t make 2nd visits upon request — so also be careful.

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(20) The 48 hour rule
Notaries need to be available by email and phone within 48 hours after the signing. If the signing company or lender needs to talk to you, and they can’t reach you, they will write a complaint on your listing on 123notary and that will stay there permanently. They might need you to go back to the borrowers, or they might need to clarify something with you.

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February 15, 2013

Signing agent best practices: 63 points

Here are a few tips about best practices. Maybe none of your clients will care, or maybe they will even adamantly dislike your best practices. But, if you have any self-respect, you will engage in best practices.

LEGAL & TECHNICAL BEST PRACTICES

(1) Hand written documents.
As a notary, it is not illegal to notarize a hand written document. The issue is if there are cross-outs, or blanks. Blanks make it illegal to notarize, but cross outs are a question mark. Personally, if you care about best practices, and not ending up in court for some stupidity that the signer did, then require typed documents with no cross-outs or blanks.

(2) Don’t pick the type of notarization for your signer
That is their job. Legally, you can not choose for them.

(3) Blanks in documents
Put a line through the blanks or refuse the notarize. (that was quick)

(4) Cross-outs
I would avoid notarizing anything with a cross-out. If you can do a cross out, you don’t know if it was there before the notarization or not. If there is one before, what prevents there from being more after. You can forge an initial without being detected, so cross outs are an indication that you need a redraw.

(5) Affixing your seal over wording
This is illegal in many states. The notary seal should be placed in an area of the paper where there is no wording, and do not sign or write over the stamp impression or you void it. If there is no space, then attach a loose notary certificate and make sure you document all pertinent facts on it.

(6) Loose certificates
NEVER send a loose certificate in the mail or hand it to a client. Always attach the loose certificate to the document, preferably before affixing your notary seal. Always document the name of the document, document date (if any), number of pages in the document, document description on the certificate in addition to filling in the standardized state wording, signing and sealing the form.

(7) Journals
Keep thumbprints in your journal. If your state doesn’t require journals, write them a letter about how poor their standards are and then go and buy a journal from the NNA. Also, there is a section called, “additional notes” in your journal (hopefully). Please use this to write down anything unusual about the signer during the signing, or anything unusual about the circumstances. Write it so thoroughly, that when you are in court five years later about that signing which could have involved fraud on the part of the signer, that you will have your evidence handy! Impressive!

(8) Oaths
If you do sworn Oaths, make sure to have the affiant (know this term) raise their right hand. Make sure to study up on formal Oath wording. Oaths are serious, and you are a state appointed official, so keep it official, okay?

(9) Embossers
If you don’t have a 2nd notary seal, get one. Embossers create a RAISED inkless impression. Use it as your secondary seal, and you can affix it to all pages of all documents you notarize for security. There are many frauds out there who do page swapping after the fact. To avoid page swapping (which could lend you in court for something they did after the fact) use an embosser. That way when you get a phone call 2 months later to notarize that separate page they are adding, tell them that you have to do the whole thing all over again. Sorry Charlie, that is a best practice!

(10) Learn the correct verbiage for power of attorney signings
But, there are four accepted verbiage variations. My favorite is Joe Doe, as attorney in fact for Mary Doe. Always call the lender to find out what type of verbiage they want at a signing. Remember, it is their loan, and just as long as you are not breaking the law — do it their way!

(11) Overseas documents
People overseas have bizarre standards. Some require the stamp to be on the document itself no matter what, but they didn’t put the verbiage in for your state. There is nothing LESS legal about attaching an acknowledgment form, but it is not about the law at this point. It is about whether or not THEY like it! So, find a legal way to handle their overseas the way they like. Once I manually wrote in the California Acknowledgment verbiage by hand and then sealed it. It was legal. Not exactly a best practice, but if they won’t accept best practices, then settle for “best practices under the circumstances”. Chinese are a tough crowd — you will find out!

(12) Initialing
Many Title companies don’t like suffixes such as Junior, or IV at the ends of names. But, if you are Louis Remy Martin IV, then the IV is part of your name, the 4th part of your name to be precise. Ronald R Rubin initials RRR. Get the initials to be correct and thorough. And if a lender doesn’t like it, should you break a best practice for their happiness? I don’t know of any laws about initialing, but making an initial of each part of the name is only logical, right?

(13) Signing for confused elderly people
If you sign for a person in a hospital, or someone who is just elderly. Make sure you have whomever calls you READ the identification over the phone to you including the expiration date. Have them read the name on the document too. Elderly people can never find their ID’s, and if they assure you that they have it, don’t believe it, they are lying. Trust me. I know! I am experienced and you are not! Otherwise you would be writing this blog. Do not notarize an elderly person if they can not move their arm on their own. Do not let their daughter drag their arm across a page that they are signing. You can use the daughter’s arm as a brace, but not a movement device. If the elderly person can not paraphrase what the document says, DO NOT NOTARIZE. And, by the way, the night daughter might be a con-artist who is pretending to help the elderly woman, only to be trying to cheat the old lady out of her money. Notaries beware!

(14) When in doubt, call your state notary division
Sometimes the handbook is just not enough. It doesn’t include all situations, and it is not written in English either. Legalese is not my mother tongue, what about you? Call them and bug them. Do it right or not at all. The NNA offers a good notary law hotline too, but get your information from the SOURCE and call your state notary division as your first choice!

(15) Safeguarding your seal and journal
Keeping it under lock & key is the rule of many states. A locking bag, a locking file cabinet. Keeping it in your car, etc. But, honestly, property DOES get stolen, and you need to protect yourself the best way. If your goodies are in your car, keep in in a place where it won’t get taken in a break-in. Keep it under the seat, or behind some large container in the trunk. I kept it in my trunk, but where the robbers could see it. Everything was in a little bag, and they probably thought it was a lap top and valuable. They were in a rush and didn’t inspect it before they took it. If it is at home, keep it in a locked file cabinet instead of hanging around in your locked bag. Go above and beyond the law for best practices. Keep your seal in a place where it is least likely to be “robbable”.

(16) Be an expert at your state notary laws.
Look them up in your state notary handbook. Keep this book with you. It is your bible when you are at work.

(17) Be an expert at credible witness procedure, and signing by X procedure in your state.

(18) Be an expert at all notary and signing related knowledge.
Don’t half know it or kind of know it. Be an expert, and it will show. You will be higher on people’s list if you are.

(19) Keep four phone numbers with you at signings.
In jail you get one phone call. But, as a notary you get many, and should have three phone numbers. The number of the signing company, the lender, the borrower, and the lenders’s wife. Just kidding about the last one. You need to call the lender half the time at a signing because they are such a careless bunch, that they will not have thoroughly prepped the borrower for the signing, plus there might be unexpected surprises on the documents as well. Be prepared!

(20) Using your seal on a blank piece of paper.
ILLEGAL. However, if you go to a jail, they require this for security. So, affix your seal, and then cross it out and write the words void. It is no longer illegal. It is the BEST way to clean up a WORST practice that the jail makes you do. I joked with them and told them that I thought it was funny that I was being forced to break the law by a guard at a jail. What is the world coming to?

(21) Check the signature on the identification
Does the signature on the identification match the one on the document? Did you check? Start checking.

(22) Bad identification?
Is the identification peeling? Is the signature above the lamination? Does it look like a fake identification document? Do you even have a reference guide to know if it is fake? It is your business to know. Get the NNA book on identification and drivers licenses. Also, take thumbprints. Standards for identification should be a government issued photo ID with a physical description, serial number, signature, and expiration date. Nothing else will do. Whether or not the government issuing the document need to be in the USA or not depends on what your state laws are!

(23) Thumbprints
Take thumbprints for all Deeds, recorded documents, power of attorney — as a minimum. Do this regardless of what your state requires. It could keep you out of court, and time is money. Get an inkless thumbprint pad from the NNA. Get this today. You should not be without it for one nanosecond. They can fake an ID, and fake a signature, but you can not fake a thumbprint.

(24) Don’t notarize for people who ask you to break the rules or who look suspicious.
Are you notarizing a kidnapper, or is the signer under duress? Stay away! It is not worth the money and you could get involved in a nightmare that just doesn’t end. What if someone asks you to notarize them under a different name variation than is what their identification says, and you tell them it is not legal. What if they say, “Oh, come on!!!”. What if they threaten to not pay your travel fee if you don’t? First of all your travel fee should be paid in cash at the door, or just leave. Avoid this type of people. They will make your life twisted.

(25) Don’t backdate
Signing companies will put you under pressure to do this if a borrower will lose their lock. Just say no. Tell them that their lock is their business and that your business is obeying the laws of your state which say, “No backdating“. Tell them that the security of your commission is not worth their convenience. Just leave. Don’t deal with these frauds.

(26) Don’t use white out
White out is a worst practice and will get you fired. Cross outs are a bad practice as well.

(27) Name changes the kosher way
A processor I used to work with instructed me not to cross anything out. Just have the borrower initial under the last several letters of their last name and then sign the way the new name will be typed in the document. After the fact, the processor can type in the new name. The cross-out simply doesn’t help. They just need the initial. The processor can cross it out in a way that they think is professional.

(28) Don’t explain the specifics of the loan or when the loan will fund
Just explain the basic definitions of loan terms such as APR, or rate if your state allows that. Specific information particular to their loan is for their lender to discuss with them. You can get in trouble if you make any explanations or commentary about information specific about their loan. On the other hand, you should be an expert at looking up specific pieces of information. APR is on the TIL and perhaps the Settlement Statement, so tell them that and show them where it is. The interpretation of what the information on the Settlement Statement is up to them and their lender, not you!

(29) Don’t notarize for someone who you can not communicate directly with
Some states allow the use of interpreters. I say you should not as a best practice. The interpreter could be lousy, and misinterpret something that you said. You are leaving yourself open to communication gaps. If you speak a little Spanish and can get by, and the signer understands you and vice versa, that works. Don’t create opportunities for communication gaps. I have traveled to enough foreign countries to know that people in different cultures communicate differently, they say yes when they mean no, they lie, they misrepresent, they save face, and fail to explain things thoroughly (especially asians who do the quickie explanations that leave out 95% of the meaning). I am not knocking foreigners — I just don’t believe half of what they say — and I don’t believe half of what Americans say either since Americans are a bunch of liars too! Speak directly to your signers! Learn oath verbiage in Spanish, or whatever your rusty foreign language is. Learn how to ask if you understand the document.

(30) Have a registered business name
We have notaries on the site who change their business name on our site every month. Each month it is the name of the month. This is illegal. If you have a registered business name that is registered with your county, then that is your business name, and you should have a bank account that takes checks paid to that name.

(31) Don’t draft documents
Unless you are an attorney, or authorized to draft documents, don’t get involved. You can get into bad trouble.

(32) Don’t give legal advice
If you are not an attorney, do not give legal advice. Interpreting laws, or suggesting that a person take a particular legal action might be construed as legal advice or the unauthorized practice of law.

(33) Consult an attorney before doing modifications
Although modifications could be legal in some states under some circumstances, they are often done in an illegal way, and YOU are not knowledgeable to know the difference, or to know what you can or can not do. Consult an attorney or stay away!

PRACTICAL BEST PRACTICES

(34) If you don’t get paid on time, contact the Title company.
They might fire or discipline the signing company in that case.

(35) Charging travel fee in cash upon arrival
It is ILLEGAL for a notary to have beneficial interest in the signing. However, many clients including Title companies will simply not pay the notary if the documents or loan packages don’t get signed, notarized, and funded properly. Unfortunately, that is illegal to put the notary in the position where they will only get paid if they notarize. It is actually a MISDEMEANOR in many states to ask the notary to do something illegal which could include having beneficial interest. If you don’t get your cash up front BEFORE you see the signers, documents or identification, you will be sorry. Get your cash, and THEN see the document. If it is incomplete, that is their problem. No identification, or the names don’t match? Their problem. Signer is in a coma and can not talk — their problem. Some situations will merit waiting time, and you will have no way to enforce your WAITING FEE if you don’t have your travel fee. You will not be in a bargaining situation as they will have the upper hand. If you have your $40 cash travel fee, you can say that you want waiting time when the clock strikes 20 minutes otherwise you are leaving. You have the power that way, and you DON’T have beneficial interest anymore (learn to define this term to be professional).

(36) Contracts with signing companies
Have your own contract that you make companies sign to get a better price with you. Make sure you indicate that if there is any ISSUE with the signing such as a last minute cancellation, no-sign, redraw, or anything unusual, that you get paid quickly. These are exactly the types of situations whre notaries typically get stiffed. So make them pay you faster in these situations so you don’t get stiffed. Even if you charge them a discounted fee. Make them pay within 10 days for these types of signings or charge them a penalty. No contract on your terms, then no discounts for you! Take the upper hand. You are a business person!

(37) Background check all companies who want to hire you
Check them on NR and the 123notary forum — OR ELSE… You will live to regret it if you don’t.

(38) Don’t put the Fedex in the drop box
Fedex is a great company, but they do hire human beings which is their downfall. Not recommended. If a driver changes routes, the new driver might goof (once in a long while) and that drop box in a remote area might not get picked up on time — or at all. Drop your Fedex at a staffed location. The deadlines are later, and it will be in the right hands 100%. Be safe.

(39) Printing on the road
This is a business best practice. If you can print on the road, you will be on time to more appointments, and can print last minute documents in a flash. You will be popular with lenders, plus gain people’s respect for being a prepared trooper. It is very expensive to have a comprehensive mobile office, so be ready to pay through the nose.

(40) Don’t go to houses that smell bad
You can end up in a hospital with a serious bacterial infection. If it is really filthy or smelly, tell them you will do the signing at Starbucks and that you have to leave at 5pm. Risking your lungs is not a best practice.

COMMUNICATION & ETIQUETTE BEST PRACTICES

(41) Don’t talk about the wrong things at signings
Don’t talk about politics or religion. Stick to the weather and traffic, but not in the context of complaining!

(42) Call back etiquette
Announce who you are when you call back. Don’t demand to know who they are until you are politely introduced yourself and explained that you received a missed call from that number. Also, don’t call people back only to tell them that you can’t talk. That is plain stupid and is a worst practice.

(43) Announce who you are when you answer the phone
Do you say, “This is Linda”, when you answer the phone? Or do you say, “Hullo?”. Be professional.

(44) When you confirm the signing, make sure all signers are there
If you do a signing where the wife is not on the loan, she might be on a few of the documents such as the Deed of Trust, Right to Cancel, and one or two others depending on what state you are in and who the lender is. Make sure you know where the wife will be during the signing, otherwise it might be a short signing. Remember, that you don’t know what is on the documents until you get the e-documents which is within minutes of the signing. Plan ahead and confirm the signing.

(45) Make sure your answering machine states your name!
Don’t make people guess if they dialed the correct number.

(46) Don’t ramble, make long pauses, or give opinions
Nobody wants to hear your life story, especially not me or my staff. Nobody wants long answers to quick questions. Nobody likes it when you ask them a question and you pause for 45 seconds to think. Don’t criticize others or give opinions either. Your job is to be a notary. Notaries don’t have opinions — or at least shouldn’t.

(47) Leave enough time between appointments
There is no point being late because you were delayed at your last appointment

(48) Determine how long your signing session will be.
Charge based on time. When you go to a massage therapist, you pay for a 60 minute session. If you go over 60 minutes, the next victim is waiting and they have to stop. Notary signings should be no different. Agree ahead of time how much time they want, and make them commit to that, or don’t work with them. If they want 90 minutes or 120 minutes, that is fine. Have them agree to that up front, and pay accordingly. Your job is not to be delayed endlessly. After all, your next appointment has the right to see your face showing up on time, right?

(49) Don’t have noise in the background when you talk on the phone
If someone calls you and there is noise. Apologize for the noise, and then walk to a quieter location. Don’t let the background noise continue otherwise you are unprofessional in my book.

(50) Don’t park in the driveway.
Your job is not to notarize, don’t put the Fedex in the drop box, and don’t park in the driveway. These are my three golden rules for notaries. Notarize only if it is legal to do so. Bring Fedexes to staffed locations, and park on the street unless there is a good reason why you should call the borrowers and ask if you can park on their driveway.

(51) Know your hours of operation
Never say that you are flexible. Tell people when you are available. I am available from 11am to 2am seven days a week unless I am already engaged, on vacation, or dead. That is a quick and professional answer. Don’t say that it depends. Don’t say that you sign anytime. People who say anytime have such restrictive schedules that they won’t sign any time other than 9-6. Flexible means 9-5:30. These terms mean absolutely nothing. Act like a professional and give people hard numbers when they ask a question — and don’t keep them waiting.

(52) Use your notes section to describe your service thoroughly
Don’t use empty adjectives like thorough and professional. Describe what YOU are like at a signing which is unique to you, so people can get to know you through your notes rather than reading something that looks like you copied it from 3000 other boring notaries who use exactly the same adjectives in exactly the same order. Talk about how fast your laser printer is. Talk about your exact counties or cities that you cover. Give people real information in your notes section, not some empty sounding sales literature that tells them nothing.

MARKETING BEST PRACTICES

(53) Get certified by ALL listing agencies who you advertise with.
If you advertise with ten companies, do all of the certifications. You look like an idiot if you can’t even be a professional at your profession!

(54) Having reviews on your profile from esteemed Title Companies looks great.
It is not a crime to have reviews from “nobodies”, but it is a best practice to have the people who review you be as reputable as possible. Their reputation is your reputation when they write a review about you.

(55) E&O insurance looks professional
E&O insurance looks professional, but is it? It makes it attractive for a company to hire you. E&O doesn’t protect you that much though. You can still get sued if the lender makes a mistake and the borrowers sue all parties involved. This happened before. You will not be covered. It actually encourages lenders to make claims rather than reducing your liability! E&O insurance makes you look good, so get some! But, is it a best practice? Being covered is better than being not covered, so I will call it a “better than nothing practice”. Or, I can call it something that looks like a best practice to the uninformed.

(56) Background screening
If your state doesn’t screen notaries as well as California does with the FBI, DOJ and KGB, then there might be some merit in a background screening.

(57) Advertise on all major directories
Have a well filled out profile, amazing notes, and reviews if possible.

(58) Call all local title companies
Call them up and announce yourself. Call them every month to remind them that you are good, and that you want to work.

(59) Get on the list of all nationwide signing companies.
Fill out the paperwork each signing company requires ahead of time. Make it a best practice to be on as many company’s lists as possible.

(60) Read notary blogs
The more you know, the more impressive and knowledgeable you will be. Know as much as possible to be the best that you can be. 123notary has an interesting Facebook, Linked in and Twitter profile as well. The more you read, the more you know!

(61) Don’t lie about your number of signings
Keep a count. Look them up in your journal. When someone asks you how many signings you have done, don’t ramble about how many years you have been in business. Nobody wants to hear that. Tell them how many you did. 1012 signings, plus there will be another one tonight! Don’t tell them you did two yesterday and three the day before. Nobody has patience to hear you count. Don’t think — KNOW!

(62) Guarantee your work
If you goof, go back and do it again for free. Make this a policy.

(63) Send complete bills regularly.
You need to know exactly what information goes on the invoices you send out. Name of borrower, loan number, address, date of signing, name of lender, etc. Bill regularly and keep good records, including the CHECK # of incoming checks. Otherwise you won’t get paid.

Tweets:
(1) Is it legal to notarize a hand-written document? What if there are cross outs?
(2) Blanks in documents? Put a line through it buddy!
(3) It is illegal to use your seal on a blank piece of paper. Yet jails usually require this! (cross it out)
(4) Notary topics: Hand-written docs, Blanks in docs, seal over wording, loose certificates, overseas docs.
(5) Don’t go to houses that smell bad #mobilenotary
(6) Notary contracts, fees at the door, background screening signing co’s, call Title if not paid on time.

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You might also like:

Notary Public 101 – a free notary course
http://blog.123notary.com/?p=19493

The 30 Point Courses – a free loan signing course
http://blog.123notary.com/?p=14233

Notary Marketing 102 – a free marketing course for Notaries
http://blog.123notary.com/?p=19774

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November 20, 2011

The Notary Signing Agent Loan Signing Process & Pitfalls

The Notary Signing Agent “Loan Closing” – Process, Preparation & Pitfalls

Perhaps it would be best to cover the events, from the desire for a mortgage, or re-finance, to funding; chronologically, as the timeline is the only common aspect. The borrower completes a Loan Application (more on the importance of this later), and numerous other documents. These are usually signed at the location of the Lending Institution (bank), in the presence of the Loan Officer (LO). Once approved by the bank, the processing becomes very interesting indeed.

The LO’s bank will lend money to the borrower based on the Mortgage as collateral for the loan. Banks do not like to take any risk whatsoever. What if the borrower does not have “clear title” to the property? To protect the bank, the bank requires the borrower to pay for “Title Insurance” issued by a “Title Co.”. So the next step is for the LO to contact a Title Co. to arrange for the insurance. Note that from this point forward the Title Co. “calls the shots”; as the Title Co. is the only party taking “risk”. If they do not issue the necessary insurance, there is no loan.

Eventually, after the loan has been approved, and the Title Insurance has been approved – usually about 2-3 weeks after the Loan Application; the stage is set for the actual processing of the paperwork. Various documents must be notarized, and it is the role of the Notary Public to check the ID’s of affiants on notarized documents; and there will be many! The mortgage is always notarized; and frequently two copies are processed; in case the messenger sent to record the mortgage at the local county clerk’s office loses it on the way. That actually does happen.

At this point the documents, typically from 80 to 125 pages are computer generated and ready for the Notary Signing Agent to bring to the borrower. But first a qualified NSA must be selected. As it is the Title Co. who is most interested in proper completion of the paperwork, they take on a leadership role to get the documents signed by the borrowers. But, not wanting to actually deal with, or have to select notaries, they often use a Signing Service (SS) to actually choose the notary.

At this point the Signing Agent gets a call asking if they are available to be at so and so location at such and such a time. If not, they call the next agent on their list. If it works for the agent’s schedule, they negotiate a fee. That fee is based on the requirements to process the Loan
Package. Variables include the number of pages, the distance to the borrower, time of day (extra for me to be there at 7AM on Sunday), etc. Also discussed are how and when the package is to be sent to the Signing Agent – overnight, usually via FedEx or E-mail. The latter
has usually has an additional fee. Once an agreement is reached, the Signing Service, on behalf of the Title Company sends a “work order” to the Signing Agent.

Now the ball is in the Notary Signing Agent’s court. Everyone who did anything prior to this point is depending on the NSA to get the borrower’s signatures and initials completely, and to do the requisite notarizations accurately. The NSA must also make sure any “non borrowing spouse” is present to sign docs as required by state law. There is much for the NSA to do. First the borrower must be called to confirm the “work order” as to contact information and address and to verify the scheduled time of meeting; and that all will bring proper ID to the table. Next, the NSA must receive and print two sets of the loan documents (borrower copy and bank copy). A good NSA will explain what will take place at the “signing” and remind the borrower to have their photo ID (and a copy to submit) ready for the meeting. A really good NSA will ask the borrower what name is on their ID, as the property “vesting” name sometimes differs from the name on the borrower’s ID. If so, the NSA contacts the Signing Service to get the documents corrected, or the borrower finds appropriate ID matching the documents.

Finally, usually with barely enough time to print and drive; the E-document is received and two sets printed. If there is adequate time after printing, some NSA’s like to pre-notarize the documents so they are able to devote their full attention to the signing process. Map in hand, GPS programmed, hoping the traffic is light; the NSA departs for the scheduled meeting with the borrower. A good NSA always uses a GPS to find the borrower’s location and does not get lost in the process. After dark jobs usually require a powerful flashlight to see house numbers in
residential neighborhoods.

The NSA shows their ID and requests the ID of the borrower(s). Then, the page by page completion of the documents begins. A single flaw, omission, or unreadable date (usually by the borrower) will often result in a complete re-draw of everything. The experienced NSA knows to “swap a page” from the borrower’s copy to allow a redo of a page with an error. The process usually takes about an hour, depending on the size of the Loan Package, how much the borrower wishes to read, and the amount of information to be entered. Often the borrower has questions and “attempts” to contact the LO. If, as is sometimes the case; the borrower receives the package directly, days prior to the Notaries arrival; they are expected to read it and ask their LO any questions. But, some borrowers want to ask questions of the Notary Signing Agent.

Title Co.’s and Signing Services tell the NSA to “explain the documents, but do not give legal advice”. It’s a really fine line between the two. Most NSA’s choose the side of caution and only define terms and assist the borrower to find documents with desired information (the interest
rate, the APR, the pre-payment penalty). At this time, the computer generated replacement for the original hand written Loan Application is signed. This is one of the most important documents. It is on this document that the borrower has made claims about their credit
worthiness, salary, etc. Any false statement on this document would allow the Lending Institution to demand the loan be paid in full immediately! Also, many of the numbers on this document will be wrong – because time has passed since it was originally signed – some debts
shown will be higher or lower.

Having been on several thousand signings the environmental aspects of the borrower’s premises are worthy of comment. They range from a well lit kitchen table in an air-conditioned room – to, and I am not making this up – a fruit fly infested room where the borrower pursues his
hobby of “naturally” raising Iguanas! There are many other pitfalls. In New York, the Notary is mandated to only use black ink; but Pinellas County, Florida will not record a mortgage unless all signatures are in blue ink! I have been asked several times (verbally, of course),
to “backdate” my notarization date, as the papers have expired (borrower out of town, rate lock expired, etc.). In New York that is called Forgery, a class D Felony – worthy of seven years in prison!

Finally the documents are signed and notarized, the borrower given the Notary Oath – and it’s off to FedEx to ship the documents to the Title Company. Well, not exactly. First somedocuments must be faxed, (lots of them if it will fund same day); and an airbill very carefully
prepared. Phone calls must be made to report success or failure “at the table”, and an invoice prepared. At last all is ready and the papers are handed off to FedEx.

Although the borrower thinks the “closing” has been completed – it actually has not even started. If I was a true “closing agent” – I would have a checkbook and be able to write the check on the spot. It used to be done that way many years ago. Now, the papers are received by the Title
Company and they review them for errors. If their included documents, often called “junk docs” (because they tend to be 4th generation Xerox copies), are completed and notarized correctly they approve issuance of the Title Insurance and pass the paperwork to the Lending Institution. At that time the papers are again reviewed, this time the review is for the papers that originated from the bank. The bank, with the knowledge of Title Insurance approval; will at last do the real “Closing” – which allows for issuance of the check that the borrower has been seeking.

Thus, the Notary Signing Agent is an integral part of the process. Important documents are notarized to assure the validity of the signatures. No system is perfect. A notary can be fooled with a good forgery. So can a State Trooper, with a phony Driver’s License. But, the bulk of the
impersonation potential is filtered at the source by the NSA’s diligence in pursuing valid ID and using their stamp and embosser on documents. Borrowers like to sign papers in the comfort of their own home/office – at their convenience. The licensed and professional notary, though a part of the system that caused the recent mortgage “melt down” disaster; was never a causative factor. If not for the diligence of professional notaries pursuing the NSA craft, things would have been much, much worse.

http://kenneth-a-edelstein.com

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October 17, 2011

Fixing Botched Signings

Filed under: Notary Mistakes,Signing Tips — Tags: , , , — admin @ 9:09 am

Fixing botched signings
There are notaries out there who get calls from signing companies to fix loans that some other notary goofed on.  The comment of the seasoned notary is always, “Why didn’t you call me in the first place?”.  The signing company always says, “Because, you are too expensive”.  But, how much money are you really saving if the notary job has to be coordinated twice, done twice, and if the signing company and lender get a huge headache?

Taking risks
Its always risky hiring new people. You never know if they are going to be any good or not. But, the seasoned notaries often want double or triple what a novice wants.  How much is experience worth?  In my experience, if I send a Fedex, it takes five minutes, but if it gets lost and I have to play detective work to figure out what happened, and perhaps send it again, it could take an hour. I have other better things to do in that hour.

It would be easier if…
It would be better if there were some database somewhere where notaries would be rated. If someone was new, but people wrote some commentary about how the notary did their work, the others who are interested in hiring that notary would at least have some idea of how the notary worked.

Companies keep a database
Signing companies do keep their own database.  They are always trying new notaries out. If the new notary does a bad job, they get blacklisted in the database, and will not receive any more work.  However, the next company down the line doesn’t know what happened and will try the notary out for themselves.

How risky is it?
The question is, is it better to hire new notaries and take a risk of a loan being ruined?  How risky is it?  If you get paid $150 to get a loan signed and offer $50 to a notary, that is $100 profit.  If you get a good notary who wants $125, then you only make $25 which is not much of a profit. That is the motivating factor why signing companies don’t pay much.  You make quadruple the gross profit by hiring newbiews. After you pay your staff and your office expenses, you might be making 10x the profit by hiring newer notaries.  The business math is always interesting.

I feel that the Title company should have more of a say as to what notaries are hired for jobs if they care about their loans.  If they leave it to an intermediary, it will be like the shipping companies of 1000 years ago who brought expensive Arabian race horses to Europe, but fed them the cheapest food.  When the horses got where they were going, they were too weak to run anymore…

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March 31, 2011

Things that get notaries complaints

Things that get notaries complaints
 
Complaints are taken seriously at 123notary.com.  None of the notaries on board have voiced an opinion supporting our review system which allows browsers to post legitimate complaints about notaries.  Many notaries on board feel that they have a license to cause trouble, and that I have no right to ask questions or do anything about it since they pay us for advertising. Many notaries want the right to harm others without being held accountable.  My point of view is that if you cause misconduct while on our site, ITS MY BUSINESS, and you will be held accountable. 
 
I want to take a positive approach to this problem and let the notaries know what the common things that go wrong are, so that you can avoid getting a complaint in the first place.   I’m going to list types of complaints in order of how frequently they come up.
 
(1) Rudeness
Of all the complaints we have gotten, the largest category was rudeness which includes using bad words, hostility, hanging up on people, rude tones of voice, antagonism, harrassment, and threats.  If a signing company doesn’t treat you the way you like, DON’T WORK FOR THEM.  Don’t threaten to use their fedex account.  Don’t threaten to put a lien on the borrowers house if you don’t get paid.  Don’t withold a borrower’s documents until you get paid.  Have a policy for what you accept from others.  If others violate your terms, then stop dealing with them.  Period!
 
(2) No Show no call
It amazes me that notaries think they can completely blow off a signing without even calling. Then, the excuses notaries give remind me of being a substitute teacher in eighth grade. The excuses are clevely worded so that you will feel guilty for asking them any more questions.  Heartbreaking stories, grueling conditions, family crisises, and earthshaking emergencies.  Many of these excuses are true, but there is no way to verify, because not once have I ever been offered a scan of a document that proves someone’s argument one way or the other.  If you are offered a signing and you can’t make it, call at least two hours in advance.  If you are having a family emergency, in a snow storm, in WW3, in a flood, or are almost dead, you better call otherwise you will get a complaint, and I am not too interested in the excuses.
 
(3) Notary Mistakes
Many notaries make mistakes. The good notaries triple check their work and are willing to go back if they made even one small mistake.  But, not all notaries are good notaries. Many will be unwilling to go back to an appointment a second time to fix what they did wrong.   If you make a mistake, fix it whether you get paid to or not, otherwise you will lose clients and get complaints.
 
(4) Failure to return calls or emails after a signing
This is another type of problem that people have every conceivable type of excuse for.  Personally, when I’m on vacation, I answer emails.  I had a vacation where I slept in my car, slept in a tent, and couldn’t find an internet cafe for half a day. I kept looking until I found it and answered as many emails as I could.  Signing agents will go on vacation, or say they did, and use that as an excuse not to return phone calls or emails.  I won’t accept this as an excuse.  You have to be available up to 48 hours after a job is done in case there is a problem, and the problem could very well be the fault of the title company, but you still have to be available.  No excuses.

 (5) Slandering or sabotaging companies you work for
One notary said that the terms of the loan were not good.  Another tried to sell the borrower a modification right at the signing.  A third threatened to use the lender’s Fedex account # because she said she didn’t get paid enough.  Another one sent porno spam to us and others. 
 
(6) Other types of misconduct.
Some notaries just cause a lot of various types of trouble.  Others are unwilling to fix mistakes they made.  Once in a while a signer will outsource jobs to another signer and then not pay them.  Last minute cancellations are completely unacceptable unless there is a documented health emergency or other type of uncontrollable circumstances.  One notary has a habit of double booking appointments and then trying to reschedule them at the last minute.  Two notaries walked out of an appointment.  One had a family emergency and flaked.  He forgot to even tell the borrowers who were in the other room that he was going to the hospital.
 
The moral of the story is to avoid all of these problems by being very careful to go to all your appointments, be polite even if others are not polite to you, and do a good follow up after the job is done.  I’m personally tired of all the complaints, excuses, the dramas, and irresponsibility.  We want good notaries on 123notary, and for the most part, the notaries on board are excellent. We do not want a few bad apples to cause a bad reputation for the others.

Tweets:
(1) Many notaries feel that since they pay us for advertising, we’ve no right to post bad reviews on their profile.
(2) Many notaries are rude to signing companies who manipulate them. Don’t be rude! Just don’t work for them.
(3) Many notaries just don’t answer their phone or email after a signing which can cause a nightmare.

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February 5, 2011

The Signing from Heaven

The Signing from Heaven

The call comes in when you have nothing on your calendar. It’s for signing about 5 miles from your home. You notice that it’s from a very highly rated title company that you have been trying to link with for years. They are very exclusive about who they hire. They have several highly pro-notary policies. They always pay their notaries public in full, as long as you did not make any errors. It does not matter if it “closes” or not. If the borrower refuses to sign or rescinds; they consider only the work that you did. Their standard pay is $150 and the docs are always shipped to you at least 3 days prior to the signing date. The appointment is usually set 5 days prior.

When the docs arrive, (they ship them to you), you examine them closely. You notice that they took the time to accurately fill in the venue section with both the correct state and county where the signing will take place. There is no lengthy “Statement of Information”; only a request for a copy the signer’s IDs – and the borrowers are requested to sign the photocopy of their ID. The package is sent in a single PDF which includes the return airbill. The date of the signing has been set; however you are requested to arrange with the borrower a mutually convenient time for the actual signing. They respect and trust their notaries public and your check is included in the shipment.

You arrive at the signing location, with a nearby parking spot; to be greeted warmly. After introductions, they serve coffee and cookies on a spacious and well lighted table. They confirm that they have previously received and reviewed their “borrower copy” directly from the title company. They mention a mistake was found and provide you with a sealed FedEx envelope that they say contains, directly from title (the shipper’s address), a new HUD; to replace the one you brought. They inform you that you will also find in the envelope a note from the loan officer authorizing the document “swap”. You notice on the table the borrowers have prepared copies of their driver’s licenses and have placed the originals on top of the photocopies.

As you examine the IDs you notice that there are no sounds in the room. The TV is off, there are no children anywhere in sight; nor are any animals in the room. The borrowers tell you they have examined the entire package, and with the sole exception of needing a new HUD; they are ready to sign. Moreso, they request that you only present to them documents that need signatures, and that you “turn the page” on documents that do not need any signatures. When you reach the first page to be signed you notice that the spelling on the IDs exactly matches the spelling on the documents from the lending institution and title / escrow.

Processing the 87 page document set proceeds at a rapid pace. They sign using a neat clear full signature exactly as printed “under the line”. The borrowers have no questions, but do mention that they allocated a full hour to sign the documents. Half way thru the documents you are brought a refill of very excellent coffee, and a few more cookies. Towards the end of the document set the borrowers compliment you on your punctuality and mention their desire to send a complimentary letter on your behalf. After all the documents are signed, and the oath given; they mention a future need for a traveling notary and request your card. They notice the FedEx airbill/envelope and express appreciation that you will be handling the actual shipping of the package back for them.

Smiles and handshakes are followed by a last piece of cookie and final sip of that superb coffee.

Dear reader of this post regarding “The Signing from Heaven”;

The last line of this post can be found in a song by The “Bonzo Dog Doo Dah Band” specifically, the song title is: “I’m The Urban Spaceman”. Please find the lyrics – you will have to do a bit of hunting, to find the last 3 words of my post regarding “The Signing from Heaven”; which are also the last 3 words of that song.

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