Posted by Loretta Reed on 2/11/05 9:20am
Msg #20205

Maryland closings and e&o

I spoke with Brad Swanson from Chesapeake Insurance in Annapolis and also a title company this morning.
To do a closing in Maryland, not only do we have to have the bond, the Title Producers License and the notary commission, we must have E&O to cover our butts for the closing.
I tried to argue this point. Mr. Swanson's reply was that the title insurance companies i.e. Chicago Title, Lawyers Title are making us responsible and do not call us "notaries", we are settlement agents. We explain the HUD and we are liable. We will have to be appointed by each individual title insurance company in order to do their closings. I said, "I only explain their, HUD, Note, TIL, RTC, What do I have to do with the doc prep and how can I be accountable?" He said, "You are still explaining some part of the loan, you are responsible".
I said, "Endorse my policy and send me a bill".
Here we go again, another expense.
Now, even a title producer can be excluded from doing closings if they are not appointed by the insurance company. Look on the bright side, if the LTP does not follow through and get appointed, it will be more work for the rest of us.

Reply by Paul/MD on 2/11/05 9:30am
Msg #20206


I'm glad you got the info. Because I was blamed for starting rumors on another Notary website.

Reply by Loretta Reed on 2/11/05 9:39am
Msg #20209

I really was hoping that you were an insurance agent calling my bluff trying to sell e&o for signings. I wish I had been right. I just sent Brad an email asking him to adjust my policy.
Thanks for the head us. He said that this started about 6 or 7 weeks ago and he knew last summer that it was coming. Boy, Maryland is really hard on notaries, I hope it runs the ones that still take $50 for a signing right out of the state. I don't know how they can do it especially with all of the money we have to shell out.

Reply by Art_MD on 2/11/05 10:06am
Msg #20211

I guess that we have to raise our rates $5/signing to cover this.

Art

Reply by John Charles Gober on 2/11/05 1:17pm
Msg #20238

Just try being a Virginia resident and getting enough training and paperwork done to be reciprocated in Maryland.

John Charles Gober

Reply by Bonnie Glaubitz on 2/11/05 1:41pm
Msg #20241

After I got my surety bond and license I went on and got the E & O insurance because alot of the signing companies ask about it, I got it thru State Farm it runs $75.00 a quarter for $100,000.00 of coverage. I've had it for over a year, thankfully never had to use it.

Reply by Loretta Reed on 2/11/05 1:48pm
Msg #20242

That's great to know, Bonnie. If my ins rep tries to give me the shaft, I'll go to State Farm. I have never heard of State Farm having E&O.

Reply by Bonnie Glaubitz on 2/11/05 2:03pm
Msg #20245

I just called my agent that does my cars and house ins. She sent me the application...the policy is from " State Farm Specialty Products", I never checked anywhere else to see if I could get it cheaper, I like my agent.

Reply by Paul/MD on 2/11/05 5:57pm
Msg #20297


Careful with Statefarm..... the requirement is $250K in insurance and you only paid for a $100K policy

Reply by Bonnie Glaubitz on 2/11/05 6:14pm
Msg #20300

Paul, are you saying that I have to have $250k, because I only asked them for $100k????

Reply by Art_MD on 2/11/05 2:00pm
Msg #20243

Re: Bonnie- where are you located in MD n/m

Reply by Bonnie Glaubitz on 2/11/05 2:04pm
Msg #20247

Re: Bonnie- where are you located in MD n/m

Southern Maryland, St. Mary's County

Reply by Art_MD on 2/11/05 2:10pm
Msg #20249

Re: Bonnie- tnks- art_md - queens anne's n/m

Reply by sue/pa on 2/11/05 3:05pm
Msg #20268

some regular notaries are going from PA into MD with nothing but a notary stamp. I know of one PA notary who apparently has his MD notary commission and probably his title producer's license. He then farms the work out to others and although I don't know for sure I'd bet they don't have the necessary requirements. One of the idiots even told a borrower that she didn't need any id because the husband was signing first. I'm sure he'd have done a great job on a test.

Anyway, I was offered a veeeeeery good deal from a title company just this week for closings in Frederick. The manager of the title company was the one that called me. At first she didn't understand why I couldn't close in Frederick if the properties were PA properties. Finally, I think/thought I got that through to her that my commission follows me, not the real estate. Then, I figured I'd better enlighten her with what little I know of your title producers requirements. She thought that was ridiculous. Because I do a lot up here for this company and because for whatever reason they love me & my work I figured my recommendation would carry a lot of weight so I gave her the phone number of a someone with a MD title producer license but as of this a.m. he hadn't heard from her yet. Can't imagine what she's doing - perhaps researching for the proper procedure - or perhaps not.

Reply by Shannon/Va on 2/11/05 7:32pm
Msg #20311

e&o

Loretta, I had my e&o with Brad since I opened my doors. I dropped him last year. I have TIAC now. My premiums went down almost $1500.00 from Brad to TIAC. Same deductable and coverage.
Bonnie, I personally would never have e&o for 100,000. I just think it isn't enough. I can't even remember the last title seaerch I did or closing I did for a loan less than $100,000. Just be careful.

Reply by Traci-MD on 2/11/05 9:17pm
Msg #20325

Re: e&o

I have my Life, health and Title license. They require 1 million for my life and health. Soooo now I need to add 250k for the Title. When did they notify everyone?

Reply by Bonnie Glaubitz on 2/12/05 8:19am
Msg #20356

Re: e&o

geez, just when I thought I was doing ok, now I have to up my policy...thanks for the info