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January 23, 2018

What’s your sign?

Filed under: Identification For Being Notarized — Tags: , — admin @ 10:54 am

As a Notary, there are various aspects to our job. The most important according to Carmen is identifying people. But, most Notaries just look at the name, and photo, and if it is close enough, that is good enough. If the name is missing a middle initial on the ID that exists on the document that is bad news. But, most Notaries just say, “close enough.” If you say “close enough” too many times, you might end up in court on an identity fraud case which could end you up in court for weeks with no salary, and you might lose a lot of your regular customers as well.

So, how can Notaries make identifying people more reliable? Here are some quick points.

1. If the name don’t match, you must not attach.
Most Notaries say you can over sign but not undersign. This is a Lender preference not a law. If the ID says John Smith and the document says John W Smith you are taking your commission in your hands if you Notarize the signature.The Lender might not mind, but you might end up in court over this if fraud is involved and once in a blue moon it will be.

Most states make sure that middle initials are in ID’s, but not all people are from one of those states. There are out of state people, foreigners, and people who changed their names due to marriage or some other reason, not to mention people with name variations. People from Mexico culturally have two surnames on a regular basis.

So, you have to be prepared for this type of situation even though it only happens 1-6% of the time. If you are going to notarize anyway, what can you do?

(a) Ask the signer what sign he is while holding the ID. If the fake ID has a fake birthday the signer will not know his fake sign. He might be a Leo that is pretending to be an Aquarius. On the other hand, the fake ID might have a real birthday but a fake name.

(b) Get a thumbprint from the signer in your journal. That way the investigators can catch him after the fact if there is any funny business. Thumbprints also deter frauds as they often would prefer not to be notarized than risk being thumbprinted.

(c) Ask their height or birth date.

(d) Ask for a birth certificate if they have one. That doesn’t have a photo, but does have the DOB which is something you can use to cross-check information.

(e) If they have a Social Security card, that is not an acceptable ID, but the first three numbers are part of the zip code where they were born. You can cross check check the info by asking them where they were born.

(f) A gas bill is NOT generally an acceptable form of ID for notarization. However, if you want to verify a middle initial, it is better than nothing.

What you can’t do.
Do NOT accept a signature affidavit AKA statement as a form of identification. That is a document for the LENDER and the source of the information is unknown and not official. Sources for government ID’s are official which is why you can normally trust government issued photo ID’s.

Summary
You need to know your state laws on identifying signers. Many states do not require the name on the ID to exactly match the signature on the document or even for the complete name on the document to be provable based on the ID. Many states leave it up to your judgement. Just because you are following the law does not mean you won’t end up in court as a witness or conspirator to identity theft which is why you as a Notary must take as many precautions as possible.

If you are notarizing for a long term customer and want to take liberties to ensure that your business relationship does not end prematurely, then you might use the above techniques. If the customer means nothing to you, I would strongly consider JUST SAYING NO to any request that is at all questionable, especially those involving ID’s that have names shorter than that on the document.

But, the fastest way to verify if an ID is fake is simply to ask — what’s your sign?

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You might also like:

Credible Witnesses – the ins and outs
http://blog.123notary.com/?p=19634

Notary Public 101 – Identification
http://blog.123notary.com/?p=19507

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December 4, 2016

Power of Attorney – Notary Processing Mistakes

Filed under: Ken Edelstein,Popular on Facebook (comments),Popular on Linked In — Tags: , — admin @ 9:20 pm

Playing Lawyer

You’re going there to notarize, that’s what you do. The caller asked you to bring some blank copies of a “standard” Power of Attorney. I think not. There many different formats to the Power of Attorney document. Selecting, as when you provide a document; could probably be interpreted as the Illegal Practice of Law. You don’t know their requirements, but you happen to have some documents titled Power of Attorney – a recipe for disaster. We notarize upon proof and oath; it’s their responsibility to know what they are signing. That applies to Principal, Agent, Monitor and Successor Agent.

Fuzzy Job Specifications

I need my signature notarized on a Power of Attorney form. Do you accept that sole statement? Does the caller have the form(s)? Is the caller the Principal granting the powers? Will there be Agent(s) and Successor Agent(s). You probably inquired about the ID that will be presented by the caller – but do you know anything about the ID status of others to be notarized? Will all parties be present when you arrive, or will there be a lengthy wait for a tardy Agent? The caller mentioned “a” Power of Attorney form, that’s true enough – but are ten more duplicates awaiting you? Did you schedule this as a “quick one” with your next assignment very soon?

Accepting Risk

You want to avoid accepting risk. One tool is having the assignment prepaid. A more important tool is communication with your client. Stress that the signature(s) of the Principal, Agent and Successor Agent must have proper supporting ID, and that the name on the ID must match the name to be notarized on the Power of Attorney. I make it very clear: “If any person to be notarized has an ID issue that precludes notarization; you will get my sincere regrets, but not a refund”. Hospital jobs have access concerns when the Principal is the patient.

Not Sharing your Knowledge

Many are new to using a Power of Attorney. They often assume a photocopy will be accepted and that they need only one original. That is often not the case. Offer duplicates for a modest fee. Blank areas might require a N/A. Use your embosser – it’s required to submit the document to Federal Courts, and might be required if the document leaves the state where notarized. Clients can forget that most Power of Attorney documents require the authority of Agent, and Successor Agent to be specified. This is usually done by the Principal initialing various “right granting” sections giving authority to one or more Agents, and, or, Successor Agents – easy to overlook.

It’s also easy to overlook the “Separately” initial area. When there is more than one Agent or Successor Agent; the common document default is that they must act in unison. Often, the independent ability of these agents is desired; this requires initials in the appropriate area.

Disorderly Processing

In our signings we complete one document then move on to the next one. Processing a stack of identical Power of Attorney documents is best handled differently. I prefer the “same thing over and over” approach. An entry on the first copy is propagated to the remaining copies. Then the next entry is made in a similar manner. This is easier for all involved as they, after the first two or three; are “familiar” with “what goes where”. After ID checking, and notary oath administration(s) – the notarizations can proceed in a similar manner. Mentally tie to giving the oath asking the affiants if they returned their ID to a safe place. This avoids being called to return their ID when they misplaced it – this happened to me a few times.

The Introduction to the Power of Attorney, New York Statutory Short Form

CAUTION TO THE PRINCIPAL: Your Power of Attorney is an important document. As the “principal,” you give the person whom you choose (your “agent”) authority to spend your money and sell or dispose of your property during your lifetime without telling you. You do not lose your authority to act even though you have given your agent similar authority.

When your agent exercises this authority, he or she must act according to any instructions you have provided or, where there are no specific instructions, in your best interest. “Important Information for the Agent” at the end of this document describes your agent’s responsibilities.

Your agent can act on your behalf only after signing the Power of Attorney before a notary public.

You can request information from your agent at any time. If you are revoking a prior Power of Attorney, you should provide written notice of the revocation to your prior agent(s) and to any third parties who may have acted upon it, including the financial institutions where your accounts are located.

You can revoke or terminate your Power of Attorney at any time for any reason as long as you are of sound mind. If you are no longer of sound mind, a court can remove an agent for acting improperly.

Your agent cannot make health care decisions for you. You may execute a “Health Care Proxy” to do this.

If there is anything about this document that you do not understand, you should ask a lawyer of your own choosing to explain it to you

Have you asked the Principal, Agent, Monitor, and Successor Agent – if they have read and understood the disclosures, usually on the first page of the Power of Attorney document?

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You might also like:

How do you get a Power of Attorney Document?
http://blog.123notary.com/?p=20785

Index of posts about Power of Attorney
http://blog.123notary.com/?p=20255

Index of information about documents
http://blog.123notary.com/?p=20258

Penalties for Notary misconduct, fraud and failure of duty
http://blog.123notary.com/?p=21315

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November 20, 2016

Power Of Attorney Documents – Submitted as a double credit document

Filed under: Ken Edelstein,Popular on Facebook (shares) — Tags: — admin @ 9:22 pm

Power of Attorney vs a Will
There are many types of Power of Attorney documents. However, the general theme is that someone is granting authority to someone else. A Will contains the maker’s words, directives and decisions. The executor of a Will is not a decider of asset allocation, rather a facilitator of the deceased’s allocation desires. In contrast to a Will, the Agent of the Principal (of a Power of Attorney) “may” have the authority to “call the shots” – or, the Agent may be severely constrained. Usually the Agent has “some” authority to sign for the Principal. In almost all cases, the authority granted by a Power of Attorney ceases upon the Principal’s death. The Principal granting power to the Agent may revoke such power at any time unless incapacitated. A Will can also be revoked, until Probate…..

Lifespan of the Power of Attorney
The Durable Power of Attorney – (General or Limited) remains in effect when the Principal becomes incapacitated. If the Power of Attorney is not Durable, the authority of the Agent does not exist if the Principal is in no condition to revoke the authority.

The Springing Power of Attorney – Similar to the Durable, the Springing only “comes into effect” when the Principal is incapacitated. As the definition of incapacitation can vary, the specific definition of the “trigger” should be specified in detail in the document itself.

Scope of the Power of Attorney

The General Power of Attorney – This allows the Agent to sign the name of the Principal unless it’s illegal for them to do so. One example: you can’t grant power for someone to sign your notary signature. If the word Durable is included, the power remains unless revoked or death of the Principal.

The Limited Power of Attorney – (sometimes called a Special Power of Attorney) grants from Principal to Agent authority to perform specific actions. Often this format contains an expiration date. Commonly used with loan documents, authority is granted for the Agent to sign various paperwork related to obtaining real estate.

Entitlement of Agent to Receive Payment

Unrelated to the “Gift Rider”; when the Agent manages (in some jurisdictions) property, they have a statutory right to be paid. Amounts vary, but a very rough guideline (unless otherwise specified) is:
3% of money received by the attorney,
3% of money paid out by the attorney on your behalf, and
3/5 of 1% of the average annual value of the assets covered under your power of attorney.

In personal transactions, the Agent has no right to be paid unless specified by the Principal. In some cases, the Agent applies to the Court to allow payment for Agent Services. In the vast majority of what we will see as Notary Publics, payment is rarely a concern or specified. When a payment arrangement exists, it will usually be part of a separate contract and not contained in the distributed Power of Attorney.

How the Agent uses their Authority

Assume Lock is giving Key an Agent relationship. Key would probable use one of the following formats:
Lock by Key as Attorney-In-Fact
Key as Attorney-In-Fact for Lock
Opinions vary, I prefer the first example because Lock is written first matching the “under the line”.

Considerations for the Notary

ID – Follow your jurisdiction requirements – To The Letter. Power of Attorney documents can easily be litigated in a court. Look very closely at the ID, if it’s a 35 year ago picture does it look like the affiant?

Capability – a tough one, but I like to ask why they are signing, what does this document do?

Initials – Almost never required, but let’s think about it a bit. Initials are mainly used to acknowledge seeing a page. But, I submit they also “mark” a specific page as having been accepted. While I don’t suggest affiants to initial each page (Principal, Agent(s), Monitor(s) and Successor Agent(s)) – I would insist upon it if I was the Principal and not the Notary.

Blank Lines – The Principal should consider a N/A in each not-applicable area. For example: there is usually an area for the “second agent”. If this was subsequently completed, and a “loose ack” added to the document – it might appear that the second agent was approved by the Principal.

Oath – I know, many do not bother to administer an oath. On Power of Attorney documents ya better!

Suggest More, Earn More – Under most jurisdictions, a photocopy of a notarized document – is Not a notarized document. One copy will suffice for a task specific use, as in a Signing. However, a general care giver might need many copies. It is likely that a financial institution will require an original for them to permit the Agent to use their power(s). Your client might not know this, often they assume a photo copy will work the same as an original that was “wet signed” and embossed. A few dollars for each extra copy is a value to your client and might add up to some Sesame Chicken for you.

Witnesses – rare for Power of Attorney but does occur. I feel the witnesses should also be notarized whenever possible. The California “Long Form” Acknowledgement is perfect for this as it has specific areas to associate the “loose ack” to witnessing the document.

Closing Thoughts

I receive many calls for processing Power of Attorney documents. Often the caller is somewhat angry about their recent notary experience. They relate that the notary at the bank refused to notarize a totally legal to process document, it’s bank policy – they relate. The bank does not want their “deep pockets” as part of litigation. These are much more likely to be contested than an application for a passport.

It’s not often, but sometimes someone wants me to notarize their self written Power of Attorney. Of course I can do that, but I caution them that, in the majority of my experience – the document is not in a state specific standard form. Furthermore, your document might not be accepted as you intend. I am willing to proceed, but you have been cautioned that it might not suffice. They can make an informed decision.

Sometimes for a Power of Attorney signing I receive a copy (photocopy or via email) of the relevant Power of Attorney. They send it so I can “verify” and “accept” the Agent signing for the Principal. It is my opinion that I have no requirement to see that document. First, I am not an Attorney, and “technically” am not qualified to judge, read, or take any action; even if the original “wet signed” was submitted. Nor would I be in a position to know if the authority had been revoked, or if the Principal is deceased. When I notarize “Lock by Key as Attorney-in-Fact” – I am notarizing Key – only. Key is stating explicitly, and under oath (I think – it gets a bit fuzzy here, I’m not an attorney) that Key currently has AIF authority.

At the start of this blog entry I mentioned Lifespan and Scope and covered the more commonly used documents. Note that their characteristics can be combined in multiple ways. I think there could be, of the ones covered Four Factorial permutations: 4 * 3 * 2 *1 = 24 variations! This is one document that I never want to have to read and explain (with liability!) to those I will notarize.

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You might also like:

Index of posts about Power of Attorney
http://blog.123notary.com/?p=20255

Index of information about documents
http://blog.123notary.com/?p=20258

Preparing to sign a last will and testament
http://blog.123notary.com/?p=19967

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October 5, 2016

Notary Casino 2

Filed under: Virtual Comedy Themes — Tags: , — admin @ 11:59 am

Welcome to the Notary Casino where your dreams can come true. There are many Notaries here as guests, and also working here in various capacities. Notaries were hired to witness players counting cards to see if they are cheating. Just don’t mess with the big boss (they call him the embosser) of the casino otherwise he’ll make sure your term expires.

Entertainment
For entertainment, there was a Notary doing Notary tricks.
They had a Notary would could make a signature disappear. It was written in time released invisible ink. Then, they had an Elvis impersonator who could make signers disappear. The henchmen of “the embosser” could make people who didn’t pay their gambling debts disappear, but that’s a different story. The third Notary specialized in doing card tricks with ID’s and could make an ID appear out of nowhere with a little help from some friends in China (who didn’t get caught… yet…)

Dining
Drinks at the Casino were all commissioned by their local county clerk. There was Rum from The Domincan Republic; County of Santa Maria; Issueation Date Feb 02, 2004. Instead of expiration dates, the alcohol had issueation dates so you would know how aged it was as 12 to 21 years is considered perfect. For dinner they offered a seal steak and Apostille cut oatmeal for breakfast. The squid ink pasta was a huge hit with Notaries as they loved the fact that they could finally eat ink and brag about it to their friends.

Staff
The staff is very attentive and they acknowledge all people who walk into the casino. They also witness all of the guests, and their movements (creepy.) Notaries were hired to witness witnesses — if that makes sense. (sounds like Russia during the cold-war)

Games
The most popular slot machine is called Signing Company. This game is a real gamble because if you win, you don’t know if it will pay you, or how long it will take to get paid. One Notary was glued to this machine for sixty days and only left to go to the bathroom. To win this game, instead of getting three cherries, you need to get signatures, all with middle initials.

The Wheel
Finally, this casino wanted visitors to spin the wheel, but only when they were about to depart. Each section on the wheel had a different prize or lack of a prize. You could win a contract with signing companies that actually paid if you hit 10. 11 was a dud. 12 was a date with Jeremy from 123notary. 13 was “spin again”. 14 was nothing. 15 was win $100. But, the grand prize was a top spot on 123notary and a collection agency that would pay you all of the money owed to you by signing companies (after their collection fee was deducted) and then they would sue the companies to get their money.

The Fedex Box
All visits to the Notary Casino end at the Fedex box. Any money you won will be Fedexed to you in the form of a cashier’s check sent to your residence. Don’t lose the tracking number! And remember, what happens in the Notary Casino stays at the Notary Casino.

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You might also like:

Welcome to the Notary Casino
http://blog.123notary.com/?p=15255

Welcome to the Notary Zoo
http://blog.123notary.com/?p=15994

Welcome to the Notary Hotel
http://blog.123notary.com/?p=8822

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April 26, 2016

The Signature Name Affidavit

Filed under: (4) Documents,Ken Edelstein,Popular on Facebook (A little),Popular on Linked In — Tags: , , — admin @ 2:59 am

The Signature/Name Affidavit
It is most likely that you are not processing this simple form properly. First, the good news; of all the forms in various loan packages this one is probably one of the most uniform. There really is little variation in how this form is structured. I will get to where most “go wrong”; but first a bit about the purpose and structure of the SNA.

The package comes from many sources. There are bank docs, title docs, escrow docs and perhaps some from other sources. It’s a virtual certainty that the borrower name will have some slight variation on documents. Of course the key name is the one on the ID and that is the name that you will notarize; we all know that. But, how about the name variations present in the package? This form is used to state, under oath, that the affiant is “also” known as. It’s a one way form. It can only be used to add variations to the notarized name as proven. It cannot be used to “prove”, for notarization purposes a name that does not match the ID presented.

The first entry is the legal name, which I define as what is on the ID. Thus, if the middle name is on that line it must be on the ID. If, for example the middle name is NOT on the ID, it should be redacted from the top line (proven name only) and that name “demoted” to an “also known as” line in the second area. Yes, the 3 part name is their legal name, BUT – as it was not proven to me I cannot notarize it. If the ID has only the middle initial, that is the “first line” entry. They can “acquire” the middle name in full as an “also known as” in a subsequent entry.

All subsequent entries (AKAs) should include variations, including but not limited to maiden names. The most common variations are the inclusion and omission of middle initials. One approach to completing the form is to keep it on the table while processing other documents. Add to the AKA section each name variation as noticed. Ask the borrower to print and sign the AKA in parallel to processing the bulk of the package. The printed name on the left will have the variation; usually the “matching” signature on the right will be the same for each entry.

The SNA can be used in court, along with a handwriting expert; to determine a signature is authentic on a document. As the signatures were witnessed by a notary, they can be accepted as valid when comparing to a different document. For this reason it’s a good practice to N/A any unused AKA lines; so subsequent names / signatures cannot be added; do you do that?

At the start of this entry I said you probably are not processing this properly, now to prove that statement. After the AKAs there is usually a statement “and that (usually filled in with the preprinted AKA(s)) are one and the same person”. However, you probably added one or more names to the AKA entries, and had the borrower sign on the right. What you might be overlooking is the need to ALSO put the added AKAs to the statement at the bottom! Take a look at an AKA form; there is a reason that they left plenty of room. That section is often overlooked!

It’s a signing, not a closing for most of us. We are there to collect signatures and initials. It’s rare for ALL the docs to have precisely the same name; rarer still for that name to be exactly what is on the presented ID. Proper completion of the SNA is mandatory, and avoiding a redraw will mark you as both a hero and a skilled professional. But don’t go overboard; adding your own SNA is probably not a good idea. If you need one and it was not supplied, call for “what to do”!

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You might also like:

Ken’s tips for the Closing Disclosure
http://blog.123notary.com/?p=17116

A comprehensive guide to Deeds
http://blog.123notary.com/?p=16285

The Signature Affidavit – what it is and its purpose!
http://blog.123notary.com/?p=22541

What defines what a signature is?
http://blog.123notary.com/?p=22173

Index of information about documents
http://blog.123notary.com/?p=20258

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June 9, 2015

POA – Proceed on Alert

Filed under: Ken Edelstein,Power of Attorney — Tags: — admin @ 10:22 pm

POA – Proceed On Alert
The Power of Attorney is perhaps the “most powerful” of all notarized documents. Some might argue the most powerful is the Will. I disagree. Wills are probated by a Court, an extended legal procedure with notifications, attorneys, and a Judge involved. On the other hand, someone with “just” a POA can gain access to a safe deposit box, sell a house; and do virtually any other function “for” the Principal who granted Agent power to them. POAs can be limited in authority when the Principal initials selected powers, or they can be, as is more common, unlimited.

There are many addicting drugs, perhaps one of the most addictive is Cocaine, a dangerous drug indeed. I think of the POA as the Cocaine of legal documents. With a properly notarized POA that is unrestricted the Agent can access funds, close accounts, sell property, enter into contracts and sign virtually any document on behalf of the Principal. It is the potential for misuse, and the subsequent litigation that has caused many bank notaries to decline processing all POAs. The bank fears its “deep pockets” will become involved in protracted court cases.

There is a slim ray of sunshine in the Power of Attorney gloom. Persons wanting notarization of POAs often have a legitimate personal gain to follow. They are eager to pay mobile notaries, having been rejected at the bank, pharmacy, etc. So the good news is they are willing to pay, but the bad news is that POAs have a somewhat greater risk to the Notary. It’s a good idea to “double down” on the ID requirements, requiring two “rock solid” IDs prior to notarization. POAs being processed at a hospital, by a patient are especially dangerous. The hospital cannot tell you what drugs the patient is taking. How are you to know if they understand what they are signing? End of Life patients often receive Morphine and other powerful medications.

There is also the general misunderstanding about how POAs are used to consider. Generally, they are surrendered upon use. The bank granting access to a safe deposit box will probably retain the Power of Attorney to protect them against potential litigation. It’s a good idea to inquire if the POA is needed for a “one shot”, such as having an attorney sign at a closing. At the other extreme, someone who will be handling the affairs for an elderly relative might need a dozen or more POAs; for banks, brokerage accounts, even to arrange “call forwarding” of cell numbers. Take the time to determine your client’s real need, and how many they will require.

Plan on spending more time at a POA signing compared to other documents. Often the Principal will “rethink” the transaction. It’s a major “letting go” of individuality; as the documents does permit someone else to sign your name. I have attended POA signings at law firms where the Principal reviewed and expressed the desire to make major changes in the POA; even though the issues and powers have been discussed with the attorney at length prior to my arrival.

Though the POA grants the right to sign the name of someone else, it is not without some limits. If I were to give my Agent an unrestricted POA, they could not use my signature to notarize a document; as that authority cannot be granted to another person. Some notaries have taken the position that the risks are too great and refuse to process POAs. In New York State, where the code requires the notary to “notarize upon demand” if the notarization is legal; it’s a crime to decline. The environment is growing more complex. There are no easy answers.

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April 12, 2015

Point (18-24) Notary Competence; Marcy’s Hospital Signing

Filed under: (2) Technical and Legal — Tags: , , , , — admin @ 10:47 pm

Marcy had never done a hospital signing. But, she liked kids, and was thoughtful towards elderly people as well. She was called to go to St. Joseph’s to do a notarization for a bedridden old lady. When Marcy got to the hospital, she learned that the elderly lady could barely move her arms. Luckily, the lady was able to sign an X in chicken scratchy writing. Marcy was able to get together a few others in the hospital to act as subscribing witnesses. Marcy had studied this procedure since she knew that one day a notarization would be ruined and a client lost if she didn’t know it inside out. She got the subscribing witnesses to sign the first name and the last name next to the X in their own handwriting in the journal and in the document. Next, she asked the old lady to explain the document. Unfortunately, the old lady was so mentally impaired, that she could not get a single sentence out about anything. Marcy didn’t want to end up in court, so she played it safe. She declined to notarize after all of that work. Better safe than sorry, because in a fraud investigation, only God knows how long you would be in court!

The very next day, Marcy got a call from 123notary. They wanted to help her brush up on her knowledge. The girl at 123notary asked, “Name two Federal holidays in January.” Marcy said, “Oh, I know this… um…. Martin Luther King Day… and … I can’t think of the other one.” Marcy forgot about New Year’s Day. This may seem funny, but 9 out of 10 answer this question incorrectly. The answer is too obvious, or since it is celebrated in the last evening of December, it doesn’t seem like it happens in January.

The following day, Marcy got called in to notarize three Grant Deeds for a busy Realtor. They all had the same document date, the same signer, and would all be notarized on the same day. Marcy wanted to mark her journal and the additional information sections of the Acknowledgments with some distinguishing information to tell these documents apart. After all, they had the same name, date, signer, and everything! So, Marcy wrote the document date, the name of the document, # of pages, and some other information in the additional info section, but also wrote the property address as that was the only unique piece of information to separate the three Grant Deeds. Marcy was being smart now and staying out of trouble. After all, she didn’t want someone playing swap the Acknowledgment certificate after the fact. That would be a long court case. Smart — very smart!

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Point (18) Name Variations, Middle Initials & Identification
If the printed name on the signature section of the document says, Tom T Smith, then the signer has to sign that way. Once in a while there is a consistency error where the spelling of the name or the name variation might vary throughout the loan by accident. If the signer’s ID has a shorter version of the signer’s name, then it would be illegal to notarize them under a longer name. For example, the ID says “Tom Smith” and the loan documents say “Tom T Smith”, then you can’t notarize the person under the name “Tom T Smith”.

On the other hand, if the ID says, “Thomas Timothy Smith”, then you can notarize him as Thomas T Smith, or just Thomas Smith in addition to the full name stated on the ID.

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Point (19) Journals
Whatever name you choose to represent the signer that is legal according to your state’s Notary law gets recorded in your journal. Each journal entry must record:

The Date & Time of the notarization
The Type of notarization, i.e. Jurat, Acknowledgment, Oath
The name of the document & optional date of document
The name and address of the signer
The identification of the signer
The Notary fee you are charging
A signature of the signer
There should be space for the thumbprint of the signer to the right.

It is recommended that you take thumbprints for notarizations of any type of document affecting real property such as a Deed, or for Powers of Attorney. Additionally, if the method of identification was credible witnesses which is allowed in many states, you should take a thumbprint just to give extra proof of the person’s identity should it ever be questioned in court.

The most confusing part of a journal entry for Notaries is the additional notes section. What notes should you take? This is where you record information about credible witnesses and their signatures. The witnesses do NOT sign where the signer’s signature goes; otherwise where will the signer sign? You can take notes about the building, or neighborhood, or anything distinctive about the signers or your surroundings. This might jog your memory a few years after the fact should you ever be called into court about the notarization — and some type of investigation will likely happen at least once during your four year term. So, keep well documented evidence for all of your transactions.

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Point (20) Federal Holidays
Please memorize these holidays, and the days or months they fall upon. You will be tested on this.

New Years Day
Martin Luther King Day
Washington’s birthday AKA and observed on Presidents’ day
Memorial Day
Independence Day
Labor Day
Columbus Day
Veterans Day
Thanksgiving
Christmas

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Point (21) Notary Acts: Acknowledgments, Jurats, Oaths, Copy Certification by Document Custodian

(1) Acknowledgments
The signer doesn’t need to sign in front of you for an Acknowledgment. But, they need to appear before you and be positively identified. Do you keep a pad of Acknowledgment forms with your state’s wording? If there is a wording error on the acknowledgment provided to you, and you don’t have a replacement form, you will have to use cross-outs which is very unprofessional. Additionally, the notarization might get rejected if there are cross-outs. Keep a journal even if your state doesn’t require it. That is your evidence when you are investigated for someone’s fraud. You might have to lose a day or more in court if you don’t have your paperwork in order. Take journal thumbprints too, just to be thorough. Be professional, carry Acknowledgment and Jurat pads. Ninjas always carry what they need.

(2) Jurats
Jurats require identification in most states although they didn’t used to many years ago. The signer must sign before you for a Jurat. You must make them swear to the truthfulness of the statement or document as well. Affidavits typically use Jurats, although that is up to your client what type of notarization they want. Don’t forget to administer the Oath to the Affiant, or you are breaking the law! Know your notary procedures.

(3) Copies of a document?
Foreigners often need their transcripts notarized, or copies of their transcripts. The law forbids copies of vital records, but not on transcripts. You should ideally supervise the copying of the records to make sure the copy is real. That is a best practice that you can do as a notary. Some states allow a Copy Certification by Document Custodian form which is a Jurat with some extra wording on it and recognized as its own notary act. Clients were happy that I not only notarized the copy, but made a note on the certificate that I personally supervised the copying, and I signed my brief note as well. People were happy with the thoroughness of my work.

(4) Oaths
What is proper Oath wording? A lot is left to the notary who is generally untrained.
There is no official Oath wording for notaries. So, the Notary is left to improvise. Here is some wording we generally like:

Do you solemnly swear to tell the truth, the whole truth and nothing but the truth?
Are the contents of this document complete, true, and correct to the best of your knowledge?

By the way, the name of the person who swears under Oath is the Affiant.

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Here are some other points about certificates

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Loose Certificates
Don’t send loose certificates in the mail. If the lender wants a new certificate, ask for the document and original certificate, destroy the original, and attach a new one. You do not legally need to see the signer again to do that. There should only be one certificate floating around with the document. Make sure to date the new certificate the date when the notarization was actually done and not today’s date! Important point.

Certificate Wording
Most notaries do not cross out the wording in Acknowledgment sections. Where it says “his/her/their” requires the notary to cross out two of the three. That way, upon reading the edited wording, you know if you are dealing with a single man, single woman, or a plural amount of people. Sometimes the gender of the signer is not obvious based on their name. Signature(s)? What if you have one signer who signed a document twice? Then don’t cross out the (s) buddy! This is not rocket science, but most notaries do not do their cross-outs. This is the one document where you not only get to cross words out, but you are legally required.

Backdating
The date you use for a notarization must be the date of the signing. If it is around midnight, then either the date before or after midnight will do. That is the only exception. If you ask me, I feel that the date on an Acknowledgment should correspond to the minute that the signer signed the notary journal since the document could have been signed before the notarization and the certificate could be filled out after. This is only important if you have a midnight signing, otherwise there is no question about the date.

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Point (22) Elderly Notarizations & Signature by X
If you are a Notary who visits hospitals, you will have to learn how to handle difficult elder signings. Many elders have trouble moving their arms. Additionally, if the nurses have given them drugs, then they might not even be able to stay awake or communicate. You need to make sure the elder is sober. It might be illegal in your state to notarize a signer under the influence of morphine or whatever drug they are on. You also need to make sure the elderly signer understands what they are signing so they don’t get scammed. You need to make sure they are the ones signing the document and not an overly zealous daughter who puts a pen in grandma’s hand, grabs the old lady’s arm and moves it around to make a signature.

Use due caution when notarizing the elderly
Please keep in mind that the well-meaning middle-aged people who call you to visit the hospital to notarize granny might not be the old lady’s children. They might be some strangers who just wanted to “help out” who might be trying to cheat granny out of every penny she owns through a Power of Attorney or some other legal documentation that a senile old person might not mentally grasp. Take precautions to make sure you are not facilitating a scam, and that the elderly signer can state in their own words what the document is about. It might be difficult to ascertain by looking at identification cards who is related to whom as relatives don’t always share the same surname. Just assume that people might not be related and might not have honorable intentions no matter how nice they seem. Otherwise you could end up in court for a very long time!

What is Signature by X?
Signature by X is where the signer being notarized signs an X instead of a regular signature.
Many Notaries go through their entire career without understanding the necessity and importance of the Signature by X / Signature by Mark procedure (Notarizing an X). If you have ever done a hospital signing, or signing for elderly, you might be acutely aware of the physical and mental limitations that a signer has in tasks we take for granted. This often necessitates Signature by X procedures.

What steps are necessary for a Signature by Mark or X?

(1) You need two Subscribing Witnesses who witness the Signature by X.
(2) The signer signs an X in your journal and on the document.
(3) Witness one signs the person’s first name in the document and journal.
(4) Witness two signs the persons middle and last names in the document and journal.
(5) Document the ID’s and signatures of the witnesses in the document and journal.
(6) Keep in mind that this is a very unusual notary procedure and is tricky.

Subscribing Witnesses?
What is a Subscribing Witness? Anyone who witnesses someone signing by X as an official act is a Subscribing Witness. Subscribing Witnesses sign the document and the journal. In California, one witness signs the signer’s first name and the other signer signs the signer’s last and middle name (if there is one). It’s good to create documentation to accompany the document as to what this odd procedure is, since it is uncommon and looks strange. It’s also prudent to indicate the Subscribing Witnesses’ names on the actual document and that they witnessed the Signature by X.

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Point (23) Elizors
I am adding this topic just so notaries can appear intelligent if the subject ever comes up. In my career I have never heard this term, but maybe you will. An Elizor is a court appointed official that can sign over property when the owner refuses to cooperate with the court.

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Point (24) Embossers
An embosser may be used in many states as a supplemental Notary seal. As a secondary seal, the embosser should not use ink. Embossers leave a raised three dimensional impression in paper. If a Notary is prudent and embosses every page of every document they ever notarized, then it will become obvious if pages are swapped after the fact as they would not be embossed. Additionally, in a rare case where a Notary’s seal is forged, the forger will not be likely to be smart enough to also forge the secondary embosser which will make their forgery very obviously detectable. Embossers help to deter and identify fraud. They are highly recommended as a result.

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You might also like:

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

30 Point Courses (25-27) Identification, Wrong Venues, Fraud
http://blog.123notary.com/?p=14514

Sending loose certificates is illegal
http://blog.123notary.com/?p=2470

The Signature Affidavit
http://blog.123notary.com/?p=13190

Notary Journals from A to Z
http://blog.123notary.com/?p=8348

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April 5, 2015

Point (16) Initialing; Lost in a cornfield

Filed under: Loan Signing 101 — Tags: — 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.”

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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.

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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

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March 1, 2015

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

Filed under: (2) Technical and Legal — Tags: , , , — 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.

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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.

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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.

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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

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January 27, 2015

The Mortgage & The Note

Filed under: (4) Documents,Ken Edelstein — Tags: , , — 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.

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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

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