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April 5, 2015

Point (16) Initialing; Lost in a cornfield

Filed under: Loan Signing 101 — Tags: 30 point course — admin @ 11:25 pm

Marcy had been to the county fair recently. She really got to thinking as she was lost in the corn maze. But, then it all started to pop. It took her ninety minutes to get out of that maze. All of the routes seemed the same, with twists and turns, but only one would get her out of that maze. It reminded her of her career. One thing that Marcy learned, is that the maze had several signs in various locations that showed the routes. She just wasn’t reading the signs carefully enough. There was one intersection with five paths, and she kept taking the wrong one since they all looked almost identical. Where’s your GPS when you need it? She took each path one by one until she got the right one. Corn mazes are confusing like that. As she munched on some grilled corn at the fair after her ordeal, she was even more determined than ever before to be the perfect Notary. And besides, she would have to face her neighbor Patricia who didn’t tolerate failure (or bad corn)!

At Marcy’s next signing, she noticed that the name of the signer was printed incorrectly on the signature line of one of the documents. Marcy had them initial next to their signature. The next day she got a call from the Processor. The Loan Processor was upset that the initials were to the right of the signature which got in their way of doing the changes. Never had Marcy heard of someone other than her cat being so picky. After all, she did her job correctly, she had the borrower initial and sign the correct way. What more can you ask for? Furthermore, they didn’t do any forbidden cross-outs. Marcy felt her work was perfect. The Processor wanted the initials below the typed name under the last several letters of the last name. This is how 123notary teaches initialing incorrectly printed names by the way. Marcy said that she would do it that way from then on. Marcy went on to tell Patricia what had happened and Patricia said, “If it isn’t one thing, it’s another — but, keep this up. You’re really getting somewhere now! And remember, a cornfield of 10,000 acres isn’t planted in a day.”

Point 16 — Initialing
Most Notaries don’t understand initialing. At least they don’t initially. Although there are no formal rules, here are some guidelines.

The initials should cover all parts of the person’s name being signed.

Theodore T Tidmore would initial TTT
Nancy Nissenbaum would initial NN
Thomas T Carl Edison would initial TTCE

But, what if it gets complicated?

Thomas Smith, Sr. would initial TS Sr.
Thomas Jones, III would initial TJ III
Thomas DeLuna is a little more complicated. I choose TD since the last part of the name is connected.

But,

Thomas De La Cruz De Philippe Rodriguez Ramirez Gomez would initial TDLC DPRRG — oh my God.

Where do initials go?
Where do initials go, assuming they are not on a tree representing a relationship soon to be DOA? On loan document signings, it is common for borrowers to initial all pages of the Deed of Trust, sometimes the Note, often the Universal Residential Loan Application (The 1003), and sometimes other multi-page documents. There is normally a one centimeter line in the lower corner of the page where the initials are intended. But, keep your eyes open, because the special line for initials might not be where you expect it to be.

Initialing changes
Many notaries do not understand the name changing procedure. It is really up to the processor to do name changes. However, the notary must at a minimum have the borrower initial any changes. My best client during my loan signing days was a processor which is how I know the ideal procedure for name changing. It is easier than you might think.

Have the borrower initial to the right below the last several letters of the typed name.
Have the borrower sign the correct way where they are supposed to sign.
Inform the lender in writing and by phone that the name is changed to whatever it is changed to.
There is no need to cross-out. Cross-outs cause a mess. there is also no need to write in the correct name. The processor can do that.

You might also like:

30 Point Course Table of Contents
http://blog.123notary.com/?cat=3442

30 Point Course (17) The APR
http://blog.123notary.com/?p=14483

Can you notarize initials?
http://blog.123notary.com/?p=8269

Read about initialing in our industry standards blog entry
http://blog.123notary.com/?p=4370

Signing Agent Best Practices 63 Points
http://blog.123notary.com/?p=4315

Comments (1)

Point (15) Technical Points; Marcy Attaches a Certificate

Filed under: (2) Technical and Legal — Tags: 30 point course — admin @ 10:57 am

By now, Marcy had decided to really study her text book well. In this last signing, she narrowly avoided two disasters.

MARCY: Hi, I’m Marcy and I’ll be your signing agent this evening.

RUTH: Thanks for coming Marcy. I’m all ready.

MARCY: The Lender asked me to make sure we include a cashier’s check for $2500 in the package. Do you have the check?

RUTH: Oh, he didn’t remind me. But, I have it somewhere.

MARCY: Let’s take care of the check first, otherwise we’ll forget all about it and you’ll lose your lock.

RUTH: That bad?

MARCY: It’s happened before. I read about it in my course and I’m not making any careless mistakes.

RUTH: Here it is.

MARCY: Okay, the course says to staple it to an eight and a half by eleven paper and put it on the top of the stack of documents in the FedEx so the first person to open the package will immediately see it and hand it over to the correct person… Done! I’m putting it in the package, but at a 90 degree angle so I’ll see it. That way I won’t forget to make sure it’s first in line after we add all of the other documents we’re signing tonight.

RUTH: Boy, aren’t you careful?

MARCY: Well, you’d understand if you knew how many mistakes notaries often make in this industry.

(10 minutes later)

RUTH: Okay, I’ve initialed all of the pages of this Deed of Trust. Now, you need to notarize it, right?

MARCY: Correct… (stamps the document) Oooh! That came out smudgy. I better do it again.

RUTH: It looks fine. I wouldn’t worry about it.

MARCY: The Deed of Trust is a recorded document, and that means that it goes to the county clerk’s office. Some of the clerks are picky, and they have the right to reject a smudgy seal which might cause the loan to not go through on time. So, I need to attach a loose certificate and make sure my stamp comes out clearly… Perfect.

RUTH: You certainly dot your i’s and cross your t’s!

MARCY: If I didn’t, you would lose your loan.

(a day later)

LENDER: Marcy, I noticed you crossed out your Notary seal on the Deed of Trust. Why did you do that? That looks very sloppy.

MARCY: Quite to the contrary, the seal was smudged, and the county recorder would be unlikely to record such a document which is why I attached a lose certificate.

LENDER: But, did you have to staple it on? It is very difficult to disconnect — and messy.

MARCY: Legally I am required to attach the certificate. Completing loose certificates that are stamped is illegal because they can easily be used for fraud by being attached to a different document; So by un-stapling my work, you are leaving yourself open to looking very questionable.

LENDER: But, we always do that.

MARCY: Well, you are at liberty to do what you like, but I am not at liberty to break my state Notary laws! If the Lender had the certificate wording on a separate piece of paper without a page number, it would be removable so that nobody would have to see the cross out should there be an error, and once in a while there are stamping errors. Notary seals are not always clear the first time.

LENDER: Isn’t there a better way to do this?

MARCY: If you want your loan to go through, and for it to go through legally, then no — there is no other way to do this.

Point (15) A handful of technical points
These technical points fall into the category of signing agent knowledge and are generally above and beyond purely Notary knowledge. Being an expert at these points will make you a much more impressive signer.

Checks in Packages
If you are sending a cashier’s check in a package, please note that these get lost much more frequently than you might think and the borrower’s loan will be delayed if this happens. These checks are for high dollar values, so make sure they don’t get lost between all of the many hands that will touch this loan package.

Staple the check to a 8.5 x 11 piece of paper, and put this paper at the front of the loan package so that whomever opens it (generally a secretary) will see it immediately and notify the person in charge of the loan. If you put the check in the middle of the documents, the check will not get seen right away, and there could be a delay. If you don’t staple the check, it will likely get lost in the shuffle.

County Recorder Rejections
If you make a mistake on a recorded document, the county recorder can reject the document which could slow down the loan processing time. The borrower might even lose their lock which would be very costly. Take extra care when notarizing recorded documents. Which documents are recorded?

Dates
What is the difference between a Document Date, Signature Date, Transaction Date, Rescission Date and a Notarization Date?
The document date is a random arbitrarily picked date that is often subscribed in the document. It is often the same date the document is signed, or perhaps drafted. The signature date is the date a document is signed. Of course, if there is more than one signer, there would be more than one signature dates. A Notarization date is the date a document was notarized. Legally, a document can be Acknolwedged more than once though! A transaction date is the date that a document is signed. A Rescission date is the last day to rescind. There, you have five dates to remember!

eDocuments, eSignings, and eNotarizations
eDocuments are documents sent by email to the Notary to be printed out. eSignings are signings done on a laptop with the borrower doing digital signatures on a signature pad — but, with hardcopy regular notarizations using a paper journal. eNotarization are Notarizations where the notarization uses a digital seal and digital journal.

The Prepayment Penalty
The Prepayment Penalty could be mentioned in any of these four documents, or perhaps even more. The Truth in Lending says you will, won’t or may have a prepayment penalty. The HUD may reference the prepayment penalty as well. But, the two documents that offer the most thorough information on the prepayment penalty are The Note (which every loan has) and the Prepayment Rider which is only included in a handful of loans that have complicated prepenalty agreements.

Most Notaries we talk to do not know the best place to look for thorough information on the prepayment penalty. They usually want to source the TIL, but this is wrong. Try to be a little more familiar with these very basic loan concepts as your borrowers will be more impressed with you if you do.

Recorded Documents
Here are various types of recorded documents sorted into categories.

Deeds: Deed of Trust, Riders to Deed, Quit Claim Deed, Grant Deed, Inter-spousal Grant Deed, Warrantee Deed

Title Docs: Subordination Agreement, Mortgage

Legal Docs: Affidavit of Trustee, Power of Attorney (sometimes recorded), some states record the Note although most don’t.

Lien Docs:Judgment Liens, Unsecured Tax Liens, Revenue & Recovery Liens

Other:Addendum, Condo Homeowners Approval, Tax Certificate, Affidavit of Continuous Marriage (state specific)

Commonly Notarized Documents in Loan Packages
Most packages will have certain documents to be notarized such as a Deed of Trust or Mortgage in all loans. It is also common to notarize other documents such as a Signature Affidavit, Occupancy Affidavit, Correction Agreement Limited Power of Attorney, Subordination Agreements, Grant, Warranty or Quitclaim Deeds, certain Riders, Identity Affidavit, and more.

Spousal Signatures
If a spouse is not on the loan, the documents they sign might vary from state to state and lender to lender, but these documents are typical documents that they need to sign:.
(a) The Deed of Trust and accompanying Riders if any.
(b) Grant Deeds and/or Quit Claim Deeds if someone’s name is being removed from Title.
(c) The Right to Cancel if the spouse is residing in the property.

Trusts
Notarizing Trusts is not brain surgery. However, when people sign with a capacity, it is common to sign their name, a comma, and then their capacity. Al Smith, as Attorney in Fact for Joe the Plumber. You are only notarizing Al Smith, but the additional information is sometimes helpful or critical. As a general rule, unless the document custodian wishes otherwise, You should have trustees sign as trustees: John Doe, as Trustee.

Then, there are Living Trusts which are instructions for what to do if a signer is incapacitated. These are usually long documents drafted by an Attorney that can be more than forty pages long in many cases. Living Trusts are quite different than regular Trust Documents and Wills.

You might also like:

30 Point Course Table of Contents
http://blog.123notary.com/?cat=3442

30 Point Course (16) Initialing
http://blog.123notary.com/?p=14463

Don’t put the FedEx in the drop box if there is a check in the package
http://blog.123notary.com/?p=2831

Spousal Signature Requirements
http://www.123notary.com/forum/topic.asp?TOPIC_ID=244

Comments (0)

March 22, 2015

Point (13) Call The Lender? Finding the Prepayment Penalty

Filed under: Loan Signing 101,Popular on Facebook (shares),Popular on Facebook (some) — Tags: 30 point course, Call the Lender, Deed, Rate — admin @ 10:20 pm

Marcy had been studying up. She didn’t want to make a fool of herself anymore. She went to her next signing prepared.

MARCY: Hi, I’m Marcy, and I’ll be your Signing Agent tonight.

GLORIA: Oh wonderful. It is so nice to see a well prepared Notary.

MARCY: We can start here with the Deed of Trust and I’ll explain the documents as we go along unless you want to start with the HUD and work our way back.

GLORIA: Oh, very sophisticated. You sound like one of those really experienced Notaries who has signed 3000+ loans and advertises on 123notary.com.

MARCY: Well, I’ve signed about 20 by now, and I’m only 2980 short of 3000. I am working on the 123notary course, but haven’t finished it yet, but I’m almost there.

GLORIA: Great. The Deed is fine, the Note is fine, now, why is my APR higher than my Rate in my Note?

MARCY: I just studied this… I know the answer. The APR is the annual percentage relationship between the payments and the amount borrowed, minus the fees. This rate is often used to compare the different loans borrowers have to choose from. The APR is almost always higher than the rate. The rate, on the other hand, is a monthly percentage relationship between the payments and the total amount borrowed, including fees.

GLORIA: Wow, very professional. You are even better prepared than the notaries who signed 3000 loans. They just told me, “It is the cost of the loan expressed as a percentage rate.” Your answer was so professional.

MARCY: I spent two hours memorizing it and I practice daily so I won’t look like a fool.

GLORIA: Oh, no, you don’t. I’m going to tell your boss that you are the best Notary I’ve ever had, and we refinance every five years. Now, where is my prepayment penalty?

MARCY: Oh, just look on the Truth in Lending.

GLORIA: Okay… It says that I will, won’t or might have a prepayment penalty. I’ve gotten more decisive answers from a magic 8 ball. Can you do any better than this?

MARCY: Oh, hmm. I thought it was there. Do you want to call the Lender?

GLORIA: Sorry to lecture you after I complimented you, but aren’t YOU supposed to know this?

MARCY: We could call the magic 8 ball? Better yet, let’s call the Lender.

(ring-ring)

FRANK: Yeah, Frank here.

MARCY: You are the first Lender in human history to actually answer his phone.

FRANK: Glad to be of help.

MARCY: Your customer wants to know what the terms of her prepayment penalty would be.

FRANK: You mean my BORROWER. Never call them customers. Gloria DiStefano. She doesn’t have one.

MARCY: Where is that documented – In the Prepayment Rider?

FRANK: No, if there is no prepayment penalty, then there definitely won’t be a rider. Check the Note. Anything else?

MARCY: We’re good. That was fast. 45 seconds exactly not that I’m counting.

GLORIA: I’m on it. I thought we went over the Note. I guess I skimmed it too fast. Here it is. It says I don’t have a prepayment penalty. Great. I’ll pay the whole thing off tomorrow. That was easy.

MARCY: Sorry, I’ll study harder. But, I am doing so much better than three weeks ago when I first started. I hadn’t a clue then, but now I get most of the questions correct.

GLORIA: That’s good, but you need to get ALL of the questions correctly and handle all situations like a pro if you want my business!

MARCY: Sadly, you are right. I’ll finish my course and review it regularly. I might even take a few other courses too.

Point (13) Calling the Lender
Notaries are often confused about when to call the Lender. Some Notaries are over-confident and never want to call the Lender while other Notaries call whenever the borrower sneezes. A high quality Notary knows when to call the Lender and when not to bother the Lender. You have to understand many of the common situations that arise when you have a small problem. If you call the Lender, leave a message, and wait 20 minutes and then call again. Call other entities related to the loan too if you can, such as the Signing Company, Escrow, Title, etc. If the Lender does answer, the borrower might talk to them for 45 minutes while you are running late to an appointment. You will save a lot of time and aggravation if you ONLY call the Lender when you absolutely need to.

The 1003
The 1003 Universal Residential Loan Application is the one document that is universally wrong. There are always mistakes on everybody’s 1003. I’m not sure if there is a law requiring it to always be wrong, but it seems like there is some sort of cosmic law mandating that. Since the 1003, and the Good Faith Estimate are not final documents, don’t worry too much about it. Just make sure that the HUD Settlement Statement is correct, otherwise you’ll have to redraw your loan!

The APR
Many borrowers ask why the APR is higher than the Rate. If you study and rehearse explaining the APR, you can save yourself the time and aggravation of calling the Lender only to find out they are not able to answer their phone. The borrower will feel a lot better, and you will have one less problem at your signing.

The Prepayment Penalty
Borrowers ask about their Prepayment Penalty all the time. Look for it either in the Note, or the Prepayment Rider if there is one (and once in a while there is) The borrower can read the terms themselves instead of being frustrated that they can’t find it.

Letter of Instructions
Consult the letter of instructions before beginning any loan. That way you will know what to do if there is a problem. There might even be phone numbers in the instructions.

Specific Questions
If a borrower asks a question that is specific to their loan, call the lender. If they ask a general question about what information is in what loan document, you should know. Study up!

The RTC
What if the borrower signs in the wrong place on the Right to Cancel? Just go to the borrowers’ copies and get a fresh copy. You just saved yourself a lengthy discussion with the Lender.

Errors on Certificates
If there is an error on a Notary certificate, this is purely for the Notary to resolve. Don’t get the Lender involved in your job as you should know your job.

When is my first payment due?
Look in the TIL, HUD, Payment Coupon, but don’t call the Lender unless you have to.

Power of Attorney Signings
Call the Lender regardless. Even if you know exactly how to sign, call the Lender to confirm. Power of Attorney signings are rejected 70% of the time in my experience even if they are done correctly.

If the names printed on the documents are spelled wrong
If there are any problems with names of signers on the documents, you should call the Lender. If the ID doesn’t match the borrower’s name printed on the document, you have a problem. The Lender might not care about what Notary law says, but does want to get the loan signed. If the signer is not comfortable signing the way their name is typed on the document, the loan will probably not fund otherwise, but you can call the Lender or read our section about the Signature Affidavit.

Missing docs or docs the borrower won’t sign
If you are missing any of the loan documents that normally appear in a package, sign the ones that are there, send them back, and call the Lender immediately upon discovery that you are missing a document. Or, if a borrower won’t sign a particular document, call the Lender. You can send it back unsigned at the top of the stack. Or, if the borrower wants to keep it and send it back after talking to the Lender, that is another common option.

You might also like:

30 Point Course Table of Contents
http://blog.123notary.com/?cat=3442

30 Point Course (14) Explain or Don’t Explain
http://blog.123notary.com/?p=14440

Industry standards in the Notary business
http://blog.123notary.com/?p=4370

Comments (3)

March 2, 2015

Best Blog Articles for Advanced Notaries

Filed under: Loan Signing 101,Popular on Facebook (A little) — Tags: Advanced Blog Entries — admin @ 12:55 pm

A few months ago, we created a post which was a compliation of all of the best posts for beginners. It became very popular on Facebook. We like to write lots of posts here at 123notary. But, on Facebook, we tend to only post a few dozen posts per month, so we prefer to post really helpful or popular content there. So, here are my recommendations for the absolute best posts that any seasoned Notary should read!

MARKETING

Do you have to be a CSS to get work these days?
As a Signing Agent, you need to know which signing agents are getting the most work and why. What changes do you need to make to be the type of signer who gets the best offers? Find out!
http://blog.123notary.com/?p=8914

What’s the difference between getting 16 clicks/month and 100?
Notaries that optimize their listing get a lot more results than you might think!
http://blog.123notary.com/?p=13185

Poo picking — getting the best notary jobs
Do you settle for less, or do you know how to get the best quality Notary jobs?
http://blog.123notary.com/?p=9273

From 3 jobs per week to 3 jobs per day!
This Notary went from rags to riches by making a few simple changes. Find out what his secret is!
http://blog.123notary.com/?p=3940

5 or 6 reviews doubles your business
Most of our serious notaries understand that it is imperative that they get reviews. But, how do you get them and how many do you really need?
http://blog.123notary.com/?p=8484

A great attitude gets most of the jobs
Skills are one thing, but nothing beats a great attitude!
http://blog.123notary.com/?p=6493

TECHNICAL

Signing Agent Best Practices — 63 Points
This long article covers technical, marketing, legal issues, and more. Here is a compilation of the most professional tips that any seasoned notary should master.
http://blog.123notary.com/?p=4315

The 30 point course synopsis
This course is FREE and recommended to all Notaries whether experienced or new! It caters to Notary knowledge of all levels. It even includes a free over the phone test that you can take once per year. By taking this course & test, you get a number from 1-30 assigned to you that represents your current skill level. This number will eventually be published on your profile and could attract clients!
http://blog.123notary.com/?p=14233

Protecting yourself with a contract
There are so many critical payment terms to include in contract. Have you ever thought about it?
http://blog.123notary.com/?p=2593

Notarizations Dates, Document Dates & Signature Dates
All of these different types of dates can be confusing. Do you know what a transaction date is for example?
http://blog.123notary.com/?p=2421

Mobile Offices from A to Z
Mobile offices give you the freedom to print on the road which makes it possible to do a lot more jobs per day and make a lot more money as a mobile notary.
http://blog.123notary.com/?p=535

Optional Information in an Acknowledgment Certificate
Filling this information could keep you out of court and prevent fraud!
http://blog.123notary.com/?p=4407

I go over the HUD-1 first
One notary likes to go over the fees before even signing the Deed of Trust. Read her strategy!
http://blog.123notary.com/?p=4819

Industry Standards in the Notary Business
Here is a comprehensive article about standards in the business covering topics such as cross-outs, initialing, unsigned documents, and more…
http://blog.123notary.com/?p=4370

Mistakes Notaries make with Title Companies
Notaries make mistakes that many of us might be completely unaware of that cost you jobs!
http://blog.123notary.com/?p=4412

I’m being sued, and E&O won’t help
E&O covers Notary errors, not other errors. But, what if the Notary gets sued because the Lender made a mistake?
http://blog.123notary.com/?p=3570

How do you explain the APR to a non-borrowing spouse?
Most Notaries are completely unrehearsed at explaining the APR. What about you?
http://blog.123notary.com/?p=4455

PRACTICAL

Getting Paid, the ins and outs
Most notaries have trouble getting paid, but follow our easy steps and you’ll never have trouble again!
http://blog.123notary.com/?p=27

Interview with Timios Title
Yet another interview with a really popular Title company.
http://blog.123notary.com/?p=6718

Signing Company Gossip
This link is not to a particular post, but to a string of signing company gossip posts. As Notaries, you need to understand the behavior of signing companies. You need to know which ones are reliable, which ones used to be good and went downhill, and which ones are just trouble!
http://blog.123notary.com/?tag=gossip

Notary etiquette from A to Z
Don’t park in the driveway and don’t discuss politics. But, there are many other things Notaries need to know too!
http://blog.123notary.com/?p=300

Interview with Title Source
An interview with one of the best Title companies out there.
http://blog.123notary.com/?p=6553

How to get paid by out of biz signing companies
Yes, it is possible. Just follow our proven system!
http://blog.123notary.com/?p=8646

Choosing a name for your business license
Everyone chooses a business name, but is your business name any good?
http://blog.123notary.com/?p=7103

Notary Information for Beginners — Best Posts
Here are about 20 of the most really useful posts for beginners. Seasoned Notaries might find these posts useful or interesting as well.
http://blog.123notary.com/?p=10472

Comments (0)

March 1, 2015

Point (8) 1003 (9) Compliance Agreement; Marcy’s Problem w/the 1003

Filed under: (2) Technical and Legal — Tags: 30 point course, Compliance Agreement, Private Notary, The 1003 Uniform Residential Loan Application — admin @ 10:25 pm

Marcy was on her way to another Notary assignment. She had been studying a little harder now, and knew her materials a little better. But, she got stuck on the signing with the Jennings. The loan signing went well, but there was a snag.

MARCY: Hi, I’m Marcy and I’ll be your Notary Signing Agent today.

Mr. JENNINGS: Is that like being a Private Notary, like the Tina Turner song?

MARCY: I’m your private Notary, Notary for money, do what you want me to do (within reason)
I’m your private Notary, Notary for money, any old loan docs will do…

Mrs. JENNINGS: How did we get on this topic? Aren’t you supposed to be a Public Notary?

MARCY: Well, yes, but for the purposes of the song, and the appointment, I’m temporarily private — at least during the signing.

Mr. JENNINGS: And this is the most fun you’ll have with your stamps on. (laughs) Oh, love that one.

Mrs. JENNINGS: What’s love got to do, got to do with it?

MARCY: It’s okay. There is nothing wrong with a little humor, so long as the wife is around. Just make sure he doesn’t make these jokes when you disappear to the kitchen to get coffee.

Mr. JENNINGS: Yeah, otherwise you’ll have to wear that T-shirt that says, “I’m not your husband’s mistress, I’m the Notary!”

MARCY: There he goes again! I actually saw 80 year old Mrs. Appleby wearing that T-shirt with her walker. I almost died laughing.

(20 minutes later)

Mr. JENNINGS: In any case, we seem to have gotten through most of the loan. But, let’s take a look at this 1003 Universal Residential Loan Application. Didn’t we already apply? Oh my God. It has my college wrong, and my age too. I want to talk to my Lender right away!

MARCY: Oh no. I just called him, but he won’t answer. I’ll leave him a message. Any chance we’ll get this loan signed in the meantime?

Mr. Jennings: Not on your life! I’m not signing anything until I hear from my Lender.

Poor Marcy ruined yet another loan through lack of training. Little did she know that the 1003 is notoriously riddled with errors, and that the information in that document is not binding for the loan. It is just backup misinformation as the case may be. It is so common and inconsequential for the 1003 to have endless information that is just wrong that you don’t even need to talk to the Lender about it most of the time. SPOILER ALERT: The question of whether or not you should cross out wrong information in this particular document will be addressed in a later chapter.

Point (8) The 1003 Uniform Residential Loan Application

This form can be irritating because it often contains incorrect information about how old people are, where they work, how much they are borrowing, etc. Some borrowers insist on making changes to the 1003 because they are offended that the lender, for example, believes that they were born on 1-01-95 and have 3 months experience at their job when they are sixty years old and have 20 years experience. However: the information on the 1003 is not final.

Please note that often times this document must be initialed, but the location of the required initials can vary depending on the format. Additionally, there is often a blank page in this document which some people like to cross out.

For final numbers, see the Note, Deed of Trust, Truth in Lending (TIL) and Settlement Statement. Loan amounts are often misquoted by several thousand dollars in the 1003. Refer them to one of the “Final” documents like the note if they are concerned. . If the borrower remains upset, just have them write down each mistake on a piece of paper and have them talk to the lender on the following day.

Backdating. Sometimes the 1003 is backdated or the lender will leave instructions not to date it at all. Why? Because the borrower, most likely, has submitted a more user-friendly form to the borrower, which contains the same information that the 1003 does. At a closing you are often pretending that you are signing the 1003 when the borrower filled out the user-friendly application several weeks prior to the signing. As a Notary, just don’t backdate Notary documents. But don’t worry, this one is not a Notary document, and you aren’t backdating, the borrower is.

Point (9) Compliance Agreement Errors and Omissions

There are various names for variations on this document which include:

Compliance Agreements, Errors & Omissions, and the Correction Agreement Limited Power of Attorney.
These documents all deal with the same issue. Some loan packages will have a Compliance Agreement and a Correction Agreement. There are many variations to these documents, but they have universal purpose: Mistakes happen on documents all the time, and the lender needs to make sure that they get fixed faster than a celebrity’s nose. These documents allow them to make clerical corrections, basic changes, to the loan package. Please note that the difference between the various types of Compliance Agreement and the Correction Agreement Limited Power of Attorney is that the Compliance Agreement requires the borrower to “cooperate” when clerical changes need to be made while the Correction Agreement Power of Attorney allows the lender to make the changes on their own.

The Compliance Agreement
The Compliance Agreement states that the borrower will cooperate in the correcting of information if the situation arises. “The errors and omissions” is sometimes a phrase that comes in the beginning of the document like Errors and Omissions / Compliance Agreement. An omission is a piece of information that someone has left out of the document.

The Correction Agreement Limited Power of Attorney
This document makes some borrowers worry. This document transfers power to the lender to make changes to their loan documents. It is only to correct clerical and typographical errors, like misspellings and other simple errors. It doesn’t affect the numbers or terms in the loan at all. Make sure to comfort the borrowers with a similar explanation if they are alarmed. They are not really signing their life away.

You might also like:

30 Point Course Table of Contents
http://blog.123notary.com/?cat=3442

30 Point Course (10) The Signature Affidavit
http://blog.123notary.com/?p=14356

Notarizing a compliance agreement (discussion)
http://www.123notary.com/forum/topic.asp?TOPIC_ID=3913

Comments (1)

February 22, 2015

Point (3) RTC (4) Closing Disclosure; Story: The Starbucks Signing

Filed under: Loan Signing 101 — Tags: 30 point course, Closing Disclosure, The Right to Cancel, The Truth in Lending, Truth in Lending — admin @ 10:05 pm

The Starbucks Signing
Marcy hadn’t completed her certification test yet. After all, why should she. A little test couldn’t be that important, right? But, she was anxious to get started. She completed her notes section on her 123notary profile. She wrote:

I am reliable, prompt, punctual and professional. Call me for any mobile notary job!

She got her first call a few days after signing up. She answered the phone as her infant was screaming. The screaming was so loud that the person on the other end of the line couldn’t hear what she was talking about. The client decided that Marcy wasn’t very professional.

Then, another call came in. She answered it and got the job. She was to notarize a Grant Deed. She had never seen a Grant Deed, but how hard could it be to notarize. She knew how to fill in an Acknowledgment form. Her baby started screaming right when she was leaving. She left the baby with her husband and went out to do her job. She arrived 20 minutes late as a result of her baby having a fit. The customer said, “Your profile claims that you are punctual, but you are 20 minutes late!” Marcy said, “But, I am punctual, it was just this one time!”

Then a third call came in. They needed a loan signing done. Their house was under repair, so they agreed to meet at a local Starbucks. Marcy’s husband wasn’t around, so she decided to take her baby with her. Luckily for her, the signers loved children, particularly infants. The signing started off okay. Marcy had received a FedEx package of the documents. Everything was in order. She put the documents on the table, and kept the borrower copies in the FedEx. She didn’t know how to introduce the documents because she had never studied loan signing. Her course book was sitting on her desk collecting dust. She would soon learn that book knowledge would help her out of a very serious bind that was about to happen. Ooops!

The couple was signing away, when the toddler spilled Marcy’s mocha all over the Right to Cancel. All Marcy could say was, “I’m so sorry, I’m so sorry.” Marcy decided she had the Right to Cancel and obligation to cancel the appointment and have them start all over another day with another notary. She went home feeling mortified and devastated. But, she didn’t have to. Marcy made several simple mistakes. What were they?

(1) No drinks on the table. Drinks spill all the time. If you have drinks on the same table as documents, you are going to have a problem, it is just a matter of time. Drinks go on a separate table or a chair as a matter of policy. If Marcy had obeyed this signing policy, she would not have gotten in trouble.

(2) Don’t bring your three year old to a signing no matter what. It is not reliable or professional to do so, not to mention the trouble they could cause.

(3) The Right to Cancel was damaged, but there was a borrower’s copy of that document in the FedEx which Marcy could have used to substitute for the damaged one. An easy fix to a common problem. It is also common that borrowers sign in the wrong place on the Right to Cancel. You need to swap that document out if that happens as well.

Point (3) The Right to Cancel

The Right to Cancel (Right to Rescission) gives the borrower in a non-commercial / non-investment refinance three calendar days not including Sundays or Federal holidays to read over the documents and consider their options. If borrowers want to spend three hours reading every page of the document, the Notary is encouraged to inform them that this is a signing appointment, and that they can review their borrower copies over the next three days and cancel within that time period if they have any dissatisfaction with the documents.

Dating: (Chaperone Not Included)
In addition to having the borrowers sign this document, it is often the Notary’s responsibility to make sure it is dated correctly. On the top of the document there should be a section that reads: “The date of the transaction, which is ____________________”. This is where the Signing Agent places the current date; this is known as the “transaction date”. Towards the bottom of the document it states: “no later than midnight of________.” This date is called the “rescission date”, and it states when the Right to Cancel period is finished. In this blank you would write the last day for the borrower to cancel, which is three days past the current date (excluding Sunday and major holidays). If it is Saturday the 20th, and Monday is a holiday, the last day to cancel would be Thursday the 25th.

What if the lender dated the document incorrectly? Cross out the incorrect date, write the new date, and have the borrower(s) initial the change. Never use white-out.

What if the transaction date is correct, but the lender is giving them too many days to cancel? Sometimes lenders are generous and give one or two extra days. Don’t correct that because it’s not an error; it is an act of generosity.

If the borrower carelessly signs where it says, “I wish to cancel”, the best way to remedy this situation is by using the borrower’s copy of the document (by the way, this question is on the exam); doing this will save everyone a great deal of trouble. If that is not possible, cross out the signature and have the borrower initial it. Then have them sign in the correct location.

Cancellation by Fax. The borrower always may cancel their loan by fax with all lenders by law within the (3) day right to cancel period.

Here is a list of all Federal holidays:

New Year’s Day
Martin Luther King Day
Washington’s birthday AKA and observed on Presidents day
Memorial Day
Independence Day
Labor Day
Columbus Day
Veteran’s Day
Thanksgiving Day ( the Friday after is a regular day unless the lender states otherwise )
Christmas Day

Point (4) The Closing Disclosure (formerly The Truth in Lending)

The Truth in Lending is now antiquated.

Notaries have become moderately familiar with the new Closing Disclosure. I want to stress some important points about this document that you should memorize.

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.

You might also like:

30 Point Course Table of Contents
http://blog.123notary.com/?p=14233

30 Point Course (5-7) HUD, Occupancy Affidavit & Deeds
http://blog.123notary.com/?p=14546

The Right to Cancel done Wrong!
http://blog.123notary.com/?p=10001

Notary information for beginners: Best Posts
http://blog.123notary.com/?p=10472

How do you explain the APR to a non-borrowing spouse?
http://blog.123notary.com/?p=4455

Comments (2)

February 15, 2015

30 Point Test Course Book: Synopsis

Filed under: 30 Point Course,Popular on Facebook (shares),Popular on Facebook (very),Popular on Linked In — Tags: 30 point course — admin @ 5:21 am

30 Points in Your Favor!
The 30 point course book is yet another certification course offered by 123notary.com. But, this one is different. Our original certification course was a very dryly written quick course designed to teach notaries basic competency in loan signing. Our Elite course was written in late 2012 and was designed to teach very sophisticated aspects of doing business as a mobile notary such as communication, marketing, hiring others, and the finer aspects of notary and signing agent work. This new 30 point course will have some elements from both of these previously written courses, but will focus only on the technical aspects of notary and signing agent work of all levels ranging from basic to very advanced. Also, be sure to read about the new loan document which goes over facts and figures about the loan called, “The Loan Estimate” which is similar in information to the TIL & HUD-1.

Required additional reading

Best blog articles for advanced Notaries – http://blog.123notary.com/?p=14736
Mobile Offices from A to Z – http://blog.123notary.com/?p=535
Signing Agent Best Practices – http://blog.123notary.com/?p=4315
The Prepayment Penalty – http://blog.123notary.com/?p=4429
The Loan Estimate (New) – http://blog.123notary.com/?p=15437

Table of Contents

Page Titles

Each post about the 30 point course will have a story and several points which could make the titles appear a bit long.
Titles might look like this:
Point (13) The Automatic Payment Disclosure; Story: Marcy’s Babysitter

Use this link to see all published posts in a string in reverse order:
http://blog.123notary.com/?tag=30-point-course

How is it different from the Elite course?
The Elite certification course was designed to get its students an upper arm in the notary business. It was designed to help them be a pro at negotiation, growing their business, and handling difficult strategic situations. The overall aim of the course was to help them make more money, grow their business, and gain attention from having the Yellow Elite Certification Icon next to their name on the search results. Notaries who passed are far more intelligent, sophisticated, and get a lot more work than their competitors in high spots on 123notary who lack the Elite designation. Based on my personal experience, I would vouch for the fact that a 123notary Elite signer has quadruple the signing agent knowledge as an uncertified signer. Although they don’t know everything, the depth and breadth of their knowledge is quite noticeable if you talk shop with them for more than a few minutes.

This 30 point course is only designed to teach notaries how to deal with technical situations like a pro, but not designed to help them get rich (although more knowledge never hurts). If you do well on the 30 point test, you can consider taking our Elite course. It will be easy for you if you got a high score on the 30 point test.

Summary of the 30 point course
The 30 point course will cover a wide range of notary and signing agent technical topics including following directions, best practices, understanding what information is where in the documents and more. Additionally, we added some entertaining stories to help make the text more enjoyable for the reader. There will be many stories which are designed to drive certain technical facts home in a pleasant and absorbing way.

Please Note
Not all of the questions covered in the 30 point test are taught in this course. Please rely on your personal experience as a notary to answer test questions not addressed in this course.

You might also like:

What’s the difference between 16 clicks a month and 100 on 123notary?
http://blog.123notary.com/?p=13185

From 3 jobs a week to 3 jobs a day!
http://blog.123notary.com/?p=3940

A detailed look at the Ninja course
http://blog.123notary.com/?p=4621

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

Comments (4)

January 27, 2015

The Mortgage & The Note

Filed under: (4) Documents,Ken Edelstein — Tags: Deed of Trust, The Mortgage, The Note — admin @ 11:41 am

The Mortgage and The Note
These two documents formulate the essence of the home purchase or refinance. The vast number of related documents provide essential and legal information. However, the Note and the Mortgage are really the “action” documents. In their most basic functionality: the note specifies the terms of the loan, the mortgage provides collateral against a default of the Note.

Curiously, the Note typically begins with “In return for a loan that I have received, I promise to pay $XXX,XXX.XX”, but rarely is the Note notarized. It is often initialed on each page by the borrower(s) that are signing the final page. There should be an agreement with the 1003, the Loan Application as to who is technically a borrower. Non-obligors who may be “on title” never sign the note. As the definitive definition of the loan; interest rate and payment terms are generally the second and third items on the first page. These are the items of greatest interest.

Also essential, but rarely initially reviewed, is the Right to Prepay; and what will happen if the borrower fails to pay according to the terms of the Note. Typically, if more than one person signs the Note, each bears the full responsibility for payment. The Note is a negotiable instrument, similar to cash or a bond. They are frequently sold by the initial lender.

Almost all variations of the note include the words “Sign Original Only” on the signature page. As a negotiable instrument is being created, multiple copies of the Note for the same obligation could lead to fraud, confusion, and the borrower(s) being asked to pay each Note! When asked to execute multiple copies of the same Note; shrewd borrowers are careful to add wording to the effect that the duplicate(s) are “file copy” and “not negotiable” next to their signature(s).

The Mortgage, often referred to as the Deed Of Trust, is generally of much greater length compared to the Note. A key provision of the Note grants the Mortgage enforceability. The Note references the related Mortgage: “In addition to the protections given to the Note Holder under this Note, a Mortgage, Deed of Trust … dated the same date as this Note … protects the Note Holder if I do not keep the promises made in this Note”.

Think of the Mortgage as the “enforcement arm” of the Note. The Mortgage contains, in about fifteen pages; the procedures to, typically; take back the property. For notaries the Mortgage often contains a “built in” problem. On the first page of the Mortgage the borrower is “supposed” to be named. However, in lieu of their legal name the “vesting” name often appears. This is not a problem on the first page. But, it does get to be a problem on the last page. For it is there that the computer often uses the “vesting” name in the notary section.

For technical reasons, on the Mortgage vesting often includes “status” terminology such as “husband and wife” or “a single woman” or “a married man” – but **ONLY** the name is permitted in the notary section. Thus, “before me appeared John B Doe a single man” is not permitted per NY State notary laws. I am required to redact (thin line through & my initials) the “a single man” part from the pre-entered value following “before me personally appeared”. Care should also be taken to have John B Doe initial JBD not just JD if his middle initial is on the signature line of the Mortgage. I promise to pay, and, what if I don’t; are the heart of the deal.

Most fail to note (no pun) that there is language in the NOTE that incorporates the Mortgage as “part of the note”

A little mentioned aspect in the “fine print” but O so important.

You might also like:

Ken’s comprehensive guide to Deeds — Good Deed Bad Deed
http://blog.123notary.com/?p=16285

The Deed of Trust
http://blog.123notary.com/?tag=deed-of-trust

Comments (2)

October 31, 2014

Signing with a former Airline Captain

Filed under: Humorous Posts — admin @ 8:18 am

NOTARY: Hi, my name is Captain Ronnie, and I’ll be your notary signing agent today. I’m experienced in the airline industry and will make sure your loan lands safely.

BORROWER: I’m more concerned that my loan gets off the ground at this point. By the way, love the captain’s hat.

NOTARY: Well, don’t worry. We’ll begin boarding procedures momentarily. They’ll make an announcement. I’m sorry that I couldn’t have been earlier, but, I was standing for five minutes in the parking area waiting for a shuttle. Then it dawned on me that there are no shuttles servicing your driveway with direct service to the check in area. Silly me!

BORROWER: That’s okay. Which way is the gate? We’re in the hallway now, so should I go into the living room or the dining room?

NOTARY: I think the living room better be the gate, because the dining room will be the plane.

BORROWER: I think I better go out for a cigarette before the captain turns on the no smoking sign.

NOTARY: Good point. I didn’t think of that.

BORROWER: I was instructed to show my identification and boarding pass when boarding the dining room table, and that the names on both must match. Is that true?

NOTARY: Yes, let me see that? I’ll record that information in my journal. Okay, now please remove all metal objects from your pockets and let me scan you.

BORROWER: What about my pen that says Chase Financial?

NOTARY: You are allowed to use that pen, but I’m not allowed to bring a pen with the name of the bank. By the way, I can’t let you into the dining room until you explain what that huge chunk of metal is in your head.

BORROWER: Oh, I had an accident as a kid, and the rest is history.

NOTARY: Got it!

(5 minutes later)

BORROWER: I’m back and all nicotined up — ready for take off. I hope I don’t get jet lag after this signing.

NOTARY: I wouldn’t worry too much about that unless you’re going to a different time zone. But anyway, first let’s get our luggage in the overhead compartment.

BORROWER: This is my dining room. There are no overhead compartments and I have no luggage.

NOTARY: That makes it all the easier.

ANNOUNCEMENT: The captain has turned on the seat belt sign. Please return to your seat and put on your seat belt.

NOTARY: The emergency exits are (making hand gestures) to the rear of the plane and also to the front. In the event of an emergency, calmly walk to whichever exit is nearest to you. If those exits are blocked, please move immediately to the closest window and jump out. Please bring one of the safety cushions below your seat to break your fall.

BORROWER: There are no safety cushions!

NOTARY: Feel under your chair.

BORROWER: Oh my god! There really are safety cushions. You might as well put a barf bag in the folder to my right, just to be true to your profession!

NOTARY: I brought my own safety devices. See this? It is a self-inflating notary seal. Great for crash landings as well as no-signs! Ooops…

(the self inflating seal popped and inflated itself as fast as an airbag.

BORROWER: Wow, that’s huge. I haven’t seen anything inflate so fast since I visited my neighbor’s teenage son’s bedroom and he showed me his… never mind.

NOTARY: I brought you one too. Yours is an oversized rubber ducky. You can ride if we have an emergency water landing. The experts say we are due for a tsunami sometime in the next few years, so it never hurts to be prepared. But, let’s not accidentally inflate yours too. They are so hard to fold back up.

BORROWER: Gee — thanks. Not exactly what I was expecting, but it is the thought that counts.

NOTARY: Now, we’re ready for take off.

BORROWER: Are you like that comedian who did a take off on take offs?

NOTARY: That was funny. I never thought of that.

BORROWER: This is hillarious… ha ha ha ha ha

ANNOUNCEMENT: The captain has turned off the no laughing sign. You are free to laugh around the cabin.

BORROWER: You are too much.

NOTARY: You think I am too much, wait until you see your APR. It is up in the stratosphere.

ANNOUNCEMENT: The captain has announced that we have successfully taken off. Please grab your pens and commence by looking over the Deed of Trust.

BORROWER: I think I need to use the bathroom. I hope there isn’t a line!

NOTARY: If there is, just use the bathroom towards the cockpit. It’s usually empty.

BORROWER: Okay, I’m looking at the Deed. It has my address correct, the lender information is correct, and the loan amount is correct. I feel like I am on stable ground.

NOTARY: Well, we’re in the air now, but glad you feel stable. I need you to initial each page on the small line in the corner, and sign at the end.

BORROWER: If I don’t like my rate, I’m going to make a paper airplane out of my Note, what do you say?

NOTARY: I think that is a bad idea, as Notes are not up to FAA standards.

BORROWER: I never thought of that.

NOTARY: Now, you’re beginning to sound like me. Now, let’s look at the Truth in Lending

ANNOUNCEMENT: The captain has announced that there will be turbulent weather ahead. Please firmly attach your seat belt and finish your drinks.

BORROWER: No offence, but how come you didn’t offer me a choice of root beer or Pepsi and those airplane peanuts.

NOTARY: Oh I do, I usually wait until we have been in flight for about twenty-five minutes.

BORROWER: Okay, the TIL is not that bad. Why is my APR higher than my rate?

NOTARY: That is because of FAA regulations which require APR’s to fly at a higher altitude unless it is a loan that doesn’t include fees.

BORROWER: I never heard it explained that way, but I must say that I like your explanation.

ANNOUNCEMENT: We will be serving drinks and refreshments in a moment. Please adjust your seat to an upright position.

BORROWER: Okay, now it is time for peanuts, right?

NOTARY: We offer a snack pack for five dollars. Due to tight profit margins in the airline industry, we can no longer afford to give free peanuts.

BORROWER: No free peanuts? What kind of a Notarial airline is this?

NOTARY: Just kidding! Here are some peanuts, and pretzels. I brought some lemons and sugar too for fresh lemonade!

BORROWER: You are the best.

NOTARY: And don’t forget not to spill your drink on the loan documents! Keep it on a separate tray or chair as a safety precaution.

BORROWER: I would if the guy in front of me would put his seat in its upright position. BTW, Is that FAA mandated?

ANNOUNCEMENT: We will be landing in twenty minutes. Please finish your loan signing by the appointed time as the captain has another appointment immediately after landing.

BORROWER: Well, I don’t like to be rushed, but I do have a three day right to cancel if I find any issues with the loan after we are done.

NOTARY: Correct, and your borrower copies are in the overhead cabinet or under your seat.

BORROWER: Got it. Above the safety flotation device. Okay, the other documents seem pretty straight forward.

(10 minutes later)

BORROWER: Okay… I’m done signing.

NOTARY: Just sign my journal here, here and here. I’ll put the journal on your tray once you get the remains of your peanuts off.

BORROWER: Okay, here we go. (bump) Ooops. There was some sudden turbulence, and my signature went off the page.

NOTARY: That’s okay. It’s my journal. Just sign again above it. The county clerk only looks at your recorded documents, not at my journal.

BORROWER: Got it. Okay, done…

NOTARY: I need a thumbprint for the recorded documents as well.

BORROWER: I’m all thumbs. Here we go.

ANNOUNCEMENT: The captain has announced that we will be landing in one minute. Please return your seats to their upright position and keep your seat belts on. Please refrain from visiting the bathroom at this time. In the event of a crash landing, please lean forward.

BORROWER: Okay, thanks for the signing. Can I go home now?

NOTARY: You are home. We’ve landed at First American International Airport, and I have to go to my next gig. Enjoy the rest of your lemonade!

BORROWER: Thanks!

You might also like:

Airline meals verses Notary Oath & Affirmations
http://blog.123notary.com/?p=19549

Shark Tank: A signing wants to sell shares on Shark Tank
http://blog.123notary.com/?p=20817

Comments (0)

October 21, 2013

Can you notarize someone’s initials?

Filed under: Legal Issues,Technical & Legal — Tags: Initialing, Initials of a Borrower, Initials of a Signer, Notarize a signature, Notarizing Initials — admin @ 7:20 am

Can you notarize someone’s initials?

It is fun to read all of the various notary questions that people have. But, a notary may only legally notarize a signature of a living person who appears before the notary public.

However, it is common for signers to be required (not required by the notary, but required by the document custodian or lender or other entity) to initial all of the pages of a Deed of Trust, Power of Attorney or perhaps a Note. There are other documents that are often initialed as well. It is never a legal requirement to initial a document, but it might be a business requirement for certain financial or business entities just to make sure that pages are not swapped after the notarization.

Initialing pages of a longer document is more of a “best practice” to deter fraud. It is harder to swap a page if there is an initial on it. However, Title companies are known to forge the initials of a signer just to save time — if the signer forgot to. Imagine that documents went to a borrower’s house, and the borrower signed the documents, and had them Fedexed back to the lender. If the borrower forgot an initial, it is a huge pain to bring those documents back. It is easier to commit forgery of an initial even though that is a serious crime!

Getting back to the main point of this article, no, a notary cannot notarize someone’s initials.

You might also like:

The 30 point course’s guide to initialing
http://blog.123notary.com/?p=14463

Why do I have to sign with my middle initial?
http://blog.123notary.com/?p=4452

Tutorial on initialing
http://blog.123notary.com/?p=14463

Comments (2)

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