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February 24, 2016

Notarizing John W. Smith

Filed under: Popular on Facebook (A little),Technical & Legal — Tags: , , , , — admin @ 11:09 am

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

The example I give is:

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

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

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

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

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

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The man who wouldn’t use his middle initial
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Hospital signing issues
http://blog.123notary.com/?p=20913

How would you notarize a document with no signature line?
http://blog.123notary.com/?p=20890

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February 23, 2016

The Closing Disclosure

Filed under: Loan Signing 101,Popular on Facebook (A little) — Tags: , , , — admin @ 9:17 am

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sign below.

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

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

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You might also like:

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

The 30 point course’s guide to the Closing Disclosure
http://blog.123notary.com/?p=14291

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November 17, 2015

Filling out your journal before the appointment?

Filed under: Journals,Popular on Facebook (A little),Popular Overall,Technical & Legal — Tags: , , , , — admin @ 1:16 am

One notary on Linked In wrote about filling in their journal before the appointment. Honestly, there is nothing illegal about this. However, if one of the parties doesn’t show up for the signing, you might have to do a lot of crossing out in your journal which might not look good if you ever get audited. I have not heard of notaries getting audited, but your state could raise its standards any time, so behave as it if could happen.

If you have limited time at a signing, you might be tempted to pre-fill the Acknowledgment forms and journal entries. It is illegal to stamp the certificates before the signer has signed your Notary journal and the document. However, putting the wording in is okay. The problem is that last minute changes do happen regularly. Signings can be postponed until the next day, and if you put the date in, or there is a last minute name variation change, you will not be able to use that form.

Personally, I feel that you should not fill in forms before or after the appointment. It is easier to make career-ruining mistakes if you divide these tasks into two sessions. You are more present at the signing (at least I am) and you should fill in the forms with the signer in front of you. As a Notary, saving a few minutes at the signing is not an important goal. Filling out these Notary certificate forms is generally very quick if you have experience. The main goal for signing agents should be to develop good practices which keep your error rate near zero.

So, my advice is — avoid the possibility of messy situations. Don’t preword your forms or journals. Do it at the time of the notarization. Be safe! You could call this a “Best Practice” or the avoidance of a “Non-Best Practice”

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Notary Journals from A to Z
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Everything you need to know about Notary Journals
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What defines what a signature is?
http://blog.123notary.com/?p=22173

Can a notary sign on a different day?
http://blog.123notary.com/?p=22084

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November 3, 2015

When to ask for ID over the phone & fees at the door

Filed under: Hospital & Jail Signings — Tags: , , , — admin @ 12:31 am

Many Notaries just don’t learn to be business-like. You have to get burned a dozen or more times to snap out of it. If you do notarizations at a hospital or for the elderly, they rarely have a current ID. If they do, then they can’t find it. In general, when you do notarizations, you need to verify that the signer has ID. Unfortunately, if you do hospital jobs, the daughter will insist that mom has her ID. When you ask for them to read the ID number to you over the phone they quickly discover that they have no IDea where the ID is. Hmmm. Have them call you back with the serial number and most important — the expiration date. If the expiration date is from 1964 you will not be able to notarize — sorry!

Then, there are the hospital visits that end prematurely because the signer was just drugged by the nurse. It is not legal to notarize someone who doesn’t know which end is up. So, if you notarize for folks in hospitals, tell them that you will cancel the notarization if the signer is drugged or not able to communicate in an intelligent way (or hold a pen.) However, the party involved might not want to pay you after your 45 minute drive since you “didn’t do anything!” But, I drove here you exclaim!

Get your travel fees at the door. Explain when you book the appointment for a hospital, office or jail that you need your travel fee at the door and waiting time. People in Law Offices are never ready on time. They will hold you hostage for two hours without a second thought. They value their own time and not anyone else’s. In fact , their entire business model is based on making everyone else wait for them. So, make them pay for your time.

$40 to $80 travel fee at the door in cash. Sorry, but nine states have restrictions on travel fees which is not constitutional.
Jail and hospital jobs take longer by definition and should have a higher travel fee. Office and home visits are normally fast unless you are dealing with Attorneys who make you wait.
$20 waiting time the minute twenty minutes elapse, and every twenty minutes after before the signatures and ID’s are ready.
$? per signature depending on what your state allows.

So, you walk in the door. Before you see the signer, or any hospital rooms or jail cells you get your $40. Don’t pass go, don’t collect $200, rather, collect your $40 before you even go in the building. Then, you proceed to wherever you are lead. In a jail, you might have to fill out forms and wait in the waiting room. In a hospital you go up to the room and then there will be a twenty minute conversation about, “How are you feeling, and do you think you are up to sitting up?” The conversation always lasts for at least ten minutes before the topic of the Notary being there and please sit up and sign something starts. The Notary’s time is taken for granted at 90% of hospital Notary jobs which is why you charge a waiting fee. At $1 per minute people will either not hire you, or treat your time (and possibly you) with respect.

In the event that your prison inmate has been transferred, escaped, or is in lock down, you will be happy you got your $40 travel fee. For jails, I recommend charging $80 to $120 travel fee. You might get stood up, and there is a lot that can go wrong. Please read our blog’s other articles on jail signings to be a pro at dealing with cons!

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Fees at the door misunderstood on Facebook
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September 2, 2015

Can a California Notary Notarize an I-9 Form?

Filed under: Other Guest Bloggers,Popular on Linked In,Technical & Legal — Tags: , — admin @ 8:26 pm

CAN A CALIFORNIA NOTARY NOTARIZE AN I-9 FORM?
The straight, simple and clear answer is “NO”.
Why then are notaries in California regularly notarizing I-9 forms?
There is a lot of confusion surrounding the notarization of I-9 forms, because the Secretary of State is silent in the handbook about NOT notarizing I-9s. Instead the handbook only addresses documents that can be notarized. The confusion is further compounded when the I-9 is accompanied by official notification from the Federal government or employer that the I-9 needs to be notarized in accordance with their guidelines.

This is not the first instance where the federal laws conflict with the state laws that govern notaries. As duly licensed notaries in the State of California, we are primarily governed by the laws and rules established by the Secretary of State and therefore should not notarize I-9 forms. It begs the question, whether $10/- that you receive is worth the “civil penalty not to exceed $100,000 for each violation of the Business and Professions Code §22445 that you will be assessed and collected in a civil action brought by any person injured by the violation or in a civil action brought in the name of the people of the State of California by the attorney general, a district attorney or city attorney”.
Who can notarize an I-9?

California Notaries who are qualified and bonded as an Immigration consultant under the Business and Professions Code Sections 22440-22449 are the only people who can lawfully complete the verification of an I-9. Furthermore, when the Immigration consultant verifies the I-9 documents, he is only doing it in the capacity of an Immigration Consultant and NOT as a Notary. The SOS considers I-9 to be an Immigration form and therefore there is that requirement to be a duly licensed Immigration Consultant. A California Notary who notarizes an I-9 is in violation of Government Code Section 8223 ©
Refer those who come to you for notarizing an I-9 to an Immigration Consultant (recommended by the NNA and SOS), save yourself from exorbitant penalties and possible jail time and simply stick to knitting as it were.

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Form I-9 According to Ken
http://blog.123notary.com/?p=15489

Notarizing an I-9 employment verification document
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Documenting your personal experience in your notes
http://blog.123notary.com/?p=19052

13 ways to get sued as a Notary
http://blog.123notary.com/?p=19614

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August 26, 2015

Do you use a Notary embosser?

Filed under: Technical & Legal — Tags: , , — admin @ 11:07 am

I read a discussion on Linked In about using an embosser for Notary work. I realize that I used to write about this a lot long time ago. Perhaps it has been since 2010 or 2011 since I have written about using an embosser. Here is what you need to know.

(1) Each state has its own rules about using seals and embossers. Some states don’t even require using a Notary Seal. I personally feel that it is not professional for a notary not to use a Seal and a Journal for all transactions regardless of what their state’s standards are. I have not heard of a state prohibiting the use of seals and or journals, although many make it optional. If you need to query a critical record for a Deed for a million dollar property, that will be impossible if you don’t keep a sequential journal!

Some states allow the use of a secondary non-inked embosser. Ask your state notary division if your state allows this. California allowed the use of an inked seal, and supplemental use of a non-inked embosser when I was a California Notary Public. As a general rule, if you are allowed to use an embosser as a primary seal, it must be inked. However, I recommend using it as a secondary seal because it doesn’t fit in small places, the text is round and hence harder to read, etc.

(2) Embossers help to deter fraud.
The correct use of an embosser as a secondary notary seal is to emboss each page of every document you notarize. That way frauds will think twice about switching pages after the fact which is a common crime.

(3) Embossers help to identify fraud
If someone is stupid and decides to commit fraud by Xeroxing a notarized document, the embosser’s three dimensional raised impression will not show up in the photocopy. Additionally, if a page is swapped, you can easily identify that page by its lack of an embossed impression

(4) Embossers don’t deter fraud unless you use them on every page of every document you notarize. If you get an embosser later in your career, make a notation in your journal of the date when you started using it, and keep notes in subsequent journals of when you started using it. The notes go in the COVER of the journal where you can’t miss it. That way, if any of your notarizations are investigated, you will have easy to query records of when you were using an embosser and when you weren’t. And remember, if you only use it on some documents, if a fraud is committed, you won’t remember if you used your embosser or not, so use it on every document and on all pages, no matter how many pages.

(5) Some people like to put the embosser through all the pages of a document all at once at a particular part of the document. This technique would make it obvious if someone used a forged embosser after the fact. The location and nature of the impression of the embosser would be different and lighter on each page that it went through. I didn’t use this technique because the impression would not be legible if it went through more than several pages. I did each page separately. Some notaries even put the embosser at the edge of the paperwork so only half of the embosser’s seal goes through the paper and the other half goes through air.

(6) The NNA and other notary supply companies can help you purchase an embosser. They cost around $30 when I was a Notary. They might be more now. You might need a letter of authorization from your state notary division to purchase one. Good luck!

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Can a notary go to jail for notary fraud?
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All mortgage fraud is investigated by the FBI
http://blog.123notary.com/?p=20995

My stolen identity and the fraudulent notary seal
http://blog.123notary.com/?p=20753

Do a half fast embossing
http://blog.123notary.com/?p=19981

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July 7, 2015

Signing of the Absurd

Filed under: Ken Edelstein,Popular on Facebook (A little),Technical & Legal — Tags: — admin @ 9:58 am

Signing of the Absurd (by Notary)
No, I’m not referring to the contents of a document that you are about to notarize. You don’t have to read (except for the notary section) when you notarize the signature of the affiant. It’s their responsibility to determine if they agree with the content, not yours. Actually, I will be discussing documents that you, the notary, sign – and sign alone. Yup, you are signing “as a notary” but nobody else is present for you to check their ID or give them the oath.

What I am referring to are those incredibly one sided “sign up” packages that border on being Power of Attorney documents. You are relinquishing virtually all of your rights. One minor example: You grant “fee deduction” if “they” find a “cause”. Naturally you dress in proper attire for your visits. But if they ask the borrower if you were impeccably spotless, was there the slightest bit of lint on your coat, a smudge on your shoe, etc. Then they can claim the borrower was “horrified” by your slovenly appearance and cut the fee at their whim, by your agreement.

I am holding a rather large “sign up” package. The only aspect common among the multitude of rules and regulations is that your fee will be reduced. Remember you have signed to agree to: Be sure that the proper paper size is used depending on the specific document. How? Most of us have dual bin LaserJet’s and print the PDF letting the PDF choose paper size. We are often asked to follow conflicting instructions. The confirmation says blue ink, the cover page on the docs says to use black – and nobody is available on the other end.

A favorite: do not leave the borrower’s home if they stop signing. I have had this a few times. An irate borrower spots something and asks me to leave. I suggest a phone call to resolve the issue, the borrower demands I leave immediately. It’s trespassing if I refuse to leave. Almost as silly, I am asked to “be absolutely sure” that the required witnesses will be present. I informed the borrower of the requirement, received assurance they will be available. But, one had a personal issue and failed to show. “It’s your fault Notary, you were required to have them both”….

This particular set of rubbish, and many similar refer to a “trip/print fee” for refusal to sign and also for cancellation during the three day period. The amount is never stated; but it is, when greater than zero; about 15 dollars. Keep in mind you signed approving this .

Let me not forget to mention the Application and “required documents” – Lots of information flowing one way. Do you know “anything” about the entity you are sending all of your personal and professional information? I doubt it. All you have is an un-proven name as the sender of the email and (usually) a “working name” for the company. What’s a “working name” it’s the name they use to “deal with you” but is not the real registered corporation or business name. In other words you tell all, and receive nothing.

Of course you give much of the same information when opening a brokerage account or applying for a credit card. The difference is that you are dealing with “name” entities, not a “puffer fish” that presents a big corporate façade, but has their only office on the kitchen table. They require you to perform “information security” with the documents to a very high standard. Sadly lacking is their assurance as to how they handle your confidential information. Think before you submit.

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Do you know how to sign applications?
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Augmenting your skill set to make more as an NSA
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June 23, 2015

Loan Signing FAQ’s That Borrowers Ask

Filed under: Loan Signing 101,Popular on Facebook (shares),Popular on Facebook (some),Popular on Linked In — Tags: , , , , , — admin @ 12:39 pm

Many notaries go to the signing table unaware that there are many frequently asked questions that they might not know how to answer. I’m going to list a few here, but our list might expand as time rolls on. Feel free to contribute some FAQ’s of your own that you came accross.

(1) Why is my APR higher than my Rate?

(2) Do I have a prepayment penalty and where can I find that information?

(3) Where are my settlement fees and the costs of the loan documented?

(4) When is my first payment due?

(5) Can I cancel my loan? How many days do I have? How do I cancel my loan?

(6) Do I sign my name with my middle initial?

(7) Why do I have to sign my name this way?

(8) Do you know how to reach my lender now? I don’t have his number in front of me.

(9) Am I in a flood zone?

(10) Do I have mortgage insurance?

(11) If I am a spouse, which documents should I sign? I thought I was on the loan.

(12) Does this property need to be my primary residence?

(13) Can I lease this property out to others during the Mortgage?

(14) What is the penalty if I am late on any of my payments?

(15) Why is my information wrong on the 1003?

(16) How come the information is different on the Good Faith Estimate and the Settlement Statement?

(17) How much can my rate go up if interest rates for up for my Adjustable Rate Loan.

(18) When my Adjustable Rate Loan graduates, will it still have a cap, but not a gown? (sorry for the bad humor)

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Acknowledgment FAQ
http://blog.123notary.com/?p=21331

Certain things you don’t learn from experience
http://blog.123notary.com/?p=22572

Do you take control at a signing
http://blog.123notary.com/?p=21104

How much pay do you merit as a signing agent?
http://blog.123notary.com/?p=19188

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June 20, 2015

Un-TIL they make the change! — CFPB’s New Mortgage Disclosure Rule

Filed under: Technical & Legal — Tags: , , , — admin @ 10:22 am

Know Before You Owe!
“The CFPB will be issuing a proposed amendment to delay the effective date of the Know Before You Owe rule until October 1, 2015.”
You can owe without knowing for the time being!

Currently, loan document packages include a Truth in Lending and often a Good Faith Estimate. The problem is that these documents are confusing. The Good Faith Estimate, TIL and HUD-1 have overlapping information and it is often hard to know which document has the final information unless you are a seasoned Notary.

The New Document will be Called “The Loan Estimate.”
This document will cover the loan amount, interest rate, monthly principal & interest, prepayment penalty info, balloon payment info, estimated monthly payments, tax, insurance, closing costs, and more.
http://files.consumerfinance.gov/f/201311_cfpb_kbyo_loan-estimate.pdf

The APR Revisited
In addition to starting the APR on page three, there will be yet another figure to make Notaries crazy called the TIP which is the Total Interest Percentage which reflects the total amount of interest you will pay over the life of the loan as a percentage of the loan amount.

Other Considerations
Late payment fees, servicing, assumption, and appraisal costs will also be covered in this new and exciting document.

Is Change Good?
Honestly, this new document is somewhat of a combination of the HUD-1 and the TIL with some elaborations and improvements. I believe it is not necessary to create a new name for a document. In my opinion, this information would be better off added to existing documents so that Notaries and borrowers don’t get any more confused than they already are.

What Do Notaries Think?
Deb on LinkedIn feels that this new document will make life simpler.
Wendell on LinkedIn feels that the new forms are not any more complicated than the forms they replace.
Linda on LinkedIn feels the new forms will help Notaries as borrowers will have the chance to look the form over and learn the facts before the signing.
Kelly states that there will be a complete process change for loans in the industry and it will be more than just one new form.
https://www.linkedin.com/grp/post/4139192-6014441719272067073?trk=groups-post-b-all-cmnts

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Technical Points for Notaries
http://blog.123notary.com/?p=14492

TRID information courtesy of Carmen
http://blog.123notary.com/?p=18932

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June 18, 2015

Do you carry a portable scanner?

Filed under: Popular on Facebook (A little),Technical & Legal — Tags: , , , — admin @ 10:26 pm

Some of the more committed Notaries have mobile offices. They have a computer, printer, scanner, and other equipment in their car. Mobile printing allows you to print on the road instead of having to go all the way home just to wait two hours for documents that never come! But, what about scanning?

These days, Notaries sometimes need to scan identification documents. You might need to email or print out these documents. So, having a portable scanner and printer is a really good idea. These days you can get really small electronics equipment that can get the job done. Just purchase reliable products from good stores that offer customer service just in case. I was tempted to say reliable brands, but sometimes a particular manufacturer might be better at one product and then lose quality a few years later. The electronics industry is a tricky one!

If you use your car as a power source for electronic equipment, consider getting an inverter. Electronic equipment may also drain your battery more than you think, so consult an expert before you do anything. Make sure your vehicle can handle the load.

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Split PDFs into Letter & Legal Separate PDFs
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Mobile offices from A to Z
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Erica’s mobile office story
http://blog.123notary.com/?p=1119

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