Posted by Harry [NR] on 9/29/06 1:19pm
Msg #149291
Notary Rotary Background Check Clarification
I have been getting reports of disparaging posts on GMN related to my ChSA proposal and wanted to offer an additional clarification by restating some of what I have previously said.
The people on GMN appear to have missed the point entirely, which is not a surprise.
We are not out to get rich, ride anyone's coattails or to develop an endless stream of ways to extract dollars from the notary signing agent's pocket. Quite the contrary. The proposal I offered for community consideration rolls-up a number of fee-based services offered by other organizations. It represents an alternative to being nickel and dimed to death AND adds an EXTREMELY significant and missing piece to the puzzle: identity and credential validation. It would do all of that by including the signing agent community in the process and providing the community with additional income in the form of signing agent work.
If six major title companies are requiring background checks based on their interpretation of GLBA - whether for piece of mind, CYA, or any other reason - it is their prerogative. If they stick to their guns and it becomes an absolute requirement despite the backlash and the impracticality of checking 50,000 to 100,000 backgrounds in a few months, then the signing agent may, in fact, need to submit to a background check to work with them.
That background check would likely not be as intensive as a governmental background check and would not employee any governmental system such as NICS. Remember, a title company is not the FBI, the NSA, or a branch of the military; I don't believe they are subject to the same stringent requirements certain financial institutions (e.g. banks) are held to and the title companies' agents are not buying guns and are generally otherwise of excellent character. If the title companies are bent on background checks, it is because they want to show a reasonable amount of diligence in protecting the interests of their clients.
With that said, it is our position that the single vendor solution recently announced by NNA is anti-competitive. An impartial organization of their size with notary interests in-mind surely would have recognized the need for either a) an open, industry-wide, multi-organizational approach, or b) the necessity for competition. The latter is even more important if you assume that the background check costs will ultimately be passed-on to the borrower, making that point also of particular interest to title companies, who should have recognized the reality in the first place.
Going back to the point... The point remains that this group of title companies and any others that follow have an obligation to their customers and to the law to support multiple vendors, especially if it means dollars saved. I believe Notary Rotary could offer background checks and GLBA training with relative ease and at a cost SUBSTANTIALLY lower than what NNA has proposed. Like we have done with our FREE 6-hour, California state-approved notary course, we could offer GLBA training for free using our new, on-line education platform. We could also offer background checks to our 50,000+ signing agents for little more than the underlying cost of the check, as well as a B2B signing agent registry for title companies to interface to for signing agent background validation. None of that would be terribly difficult.
The ChSA proposal I set-out for community consideration was meant to elicit feedback. If the chartering process were undertaken in the way I described it, it would represent something more substantial and more cost-effective than anything else in the market: Identity and credential validation (representing the bulk of the cost), knowledge verification and a background check at an extremely competitive price.
That is not to say we couldn't offer a more modular approach or even GLBA training and background checks on a standalone basis. Depending on title company requirements (nationwide criminal background v. statewide v. up-to-date county, DMV checks, credit check, currency of information, etc.), I anticipate the per person wholesale cost would fall between $6 and $20. If that were the case, we could offer GLBA training and a background check for between $15 and $30. However, I don't believe that would count for much except to satisfy the title companies' requirement. If they wanted to do it right, the only REAL way would be to validate identity, commission, attorney status, LTP status, etc.
Harry
Notary Rotary
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Reply by Gerry_VT on 9/29/06 2:19pm
Msg #149313
When different providers are supposedly providing the same service, very often a organization springs up to supposedly make sure the service is being done correctly. One example is accreditors who make sure universities are not degree mills, another example is UL which makes sure electrical goods are not dangerous. If several companies offer background checks, some company will come along and offer to check the checkers, with each of the background check companies having to pay a fee for the privilige of being checked.
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Reply by David Kral on 9/29/06 4:45pm
Msg #149353
I still think my Secretary of State may get involved at somepoint. Not always, but often, states follow federal law, thus, it it appears for mortgages notary backgrounds need to be check to handle confidential data with care, then what about other legal documents etc where the notary needs to see confidential data to verify an identity? Seems like my Secretary of State is going to want to protect that as well. Thus, I would expect that will come.
In terms of the background check. I am a real estate agent and as part of my license I have to fill out a form authorizing a criminal background check. It is also done on the condominium building where I live when moving in.
Most of these checks are done through a couple big databases similar to a credit report. I do not like the idea of the NNA being the place to get the check. I would prefer it to be an independent source that I supply to the title companies similar to those that ask for E&O, a copy of my notary license etc.
I still think over time whomever licenses notaries in each state is likely to adopt rulings on ths matter. I realize that might not help us in the short term.
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