Posted by Charlene Altman on 5/8/13 7:51am
Msg #469120

VA Notaries and CRESPA

Is anyone else being bullied by title companies to take closing checks? I was told yesterday that I work for them and I am covered. It is my responsibility and if I wasn't willing to take the check they would reschedule with someone else because they can't wait on the borrower to send in their check. I told them go ahead and reschedule.

Reply by ToniK on 5/8/13 8:03am
Msg #469121

Well if they say you are covered under them tell them to provide you with the license. Fill out the application send it in, name the Title company....yada yada yada etc etc etc

But no, I'm not bullied into that. What you can do is bring an additional envelope and waybill filled out with their information. Give it to BO and tell them to drop it at a local FedEx/UPS location. Give tracking number to company.

That's what I do. No issues here. Even TS tells their BO that.

Reply by NVLSlady/VA on 5/8/13 8:24am
Msg #469123

Re: VA Notaries and CRESPA/RESA

I think Toni's suggestion is good (bringing addtl envelope).

I got a call last week from a MD title co. that I've handled closings for thru same SS in past. She was somewhat miffed about me not collecting the borrower's check. Oh well . . . Yes, I saw it on HUD and advised bo to contact LO for further remittance instructions.

Title agent was like, LO has nothing to do with funds; they go to Title. Yes, I Know that. But when I don't see readily available instructions for sending/wiring Cash from Borrower, I refer bo to their lender for further direction.

I've also brought an extra envelope, but will now include the waybill as was directed.

p.s. Yes, TS does have that in their instructions (Like!)

Reply by NVLSlady/VA on 5/8/13 8:26am
Msg #469124

OH, and some of us here will have a title license

VERY soon, so No future RESA-fund collection issues

Reply by ToniK on 5/8/13 1:09pm
Msg #469172

Yay for TPL!! Next up Settlement agent certification n/m

Reply by CopperheadVA on 5/8/13 8:30am
Msg #469125

IMHO, this whole CRESPA thing is very misunderstood in Virginia. I do closings with a TC that is owned by a gentleman who was involved in the creation of the CRESPA regs with the Virginia Land Title Association. He has told me that notaries are covered as an agent of the TC when accepting a check that is made payable to the TC. Of course, we can never accept cash, not even for a nominal amount such as $0.25, as that would result in a violation of CRESPA because with cash of ANY amount a notary would then be in tangible possession of funds. It was explained to me that a check made payable to the TC does not make the notary in possession of funds.

I am not interested in getting into a big debate here about CRESPA. I trust what this long-time TC owner has told me. His company is above board in EVERY way, and I trust his expertise in this area. If an individual notary is not comfortable accepting funds, then by all means do not do it and have the TC provide a separate shipping label for borrower to send their check in.

Reply by NVLSlady/VA on 5/8/13 9:25am
Msg #469134

<<It was explained to me that a check made payable to the TC does not make the notary in possession of funds.>>

I know that technically, that is true - as we don't have escrow accounts, nor do any reconciliations.
I don't think I'd personally object to "collecting" a check IF I was an appointed agent of the settlement/title agent.

I had tried supplying the reasoning: "notaries are covered as an agent of the TC" to some potential TC clients -- and they wouldn't buy it. Told me to get licensed to work with them.

Reply by MW/VA on 5/8/13 9:59am
Msg #469141

That's been my interpretation also, and I know many of us

who don't make a big deal of taking checks. Someone must be stirring things up again, though, because I had a call from someone (hiring party) that asked where they can find the info that VA notaries can't accept checks. Apparently, they've having lots of problems with refusals to accept any checks at signings. When I was starting out, I asked for separate shipping envelopes for the borrowers to put their checks in. IMO there's no reason to make a huge deal of it, because there is always a work-around, even for those who aren't comfortable attaching the check to the file.

Reply by Charlene Altman on 5/8/13 11:34am
Msg #469157

Re: That's been my interpretation also, and I know many of us

Thanks for the input everyone! I think I'll just provide a filled out label and envelope and avoid any gray areas with handling the check. Be safe out there!!!

Reply by MW/VA on 5/8/13 12:56pm
Msg #469170

Re: That's been my interpretation also, and I know many of us

IMO that's a better approach than getting into an argument with the hiring parties on how funds will be handled.

Reply by ToniK on 5/8/13 1:08pm
Msg #469171

No argument here but

I don't want the liability of the monies gone missing.

I did accept a check in the amount of $78k and closed envelope at table and immediate drop at FedEx right after. 4 days later I get a frantic call saying check was never included back, BO said he gave me a check but Title claimed to have never received it. The told BO I lost it. I was livid!

So I don't care about stapling, clipping or what have you to the file. I'll gladly provide an extra envelope and let it be the BO responsibility to get it to Title. They can accept all the liability. I don't get paid enough for it! Lol!

Reply by MW/VA on 5/8/13 3:21pm
Msg #469211

I understand you have a valid personal reason for not

accepting checks, but it has nothing to do with CRESPA.

Reply by NVLSlady/VA on 5/8/13 11:18pm
Msg #469289

Re: I understand you have a valid personal reason for not

The liability issue is not separate from RESA compliance. Acting as a settlement agent without being registered "to handle funds" is where the potential liability issues lay.

It would behoove all VA nsa's to consult: http://www.scc.virginia.gov/boi/pro/resa/resafaqs.pdf

It probably wouldn't hurt to email specific concerns to: E-mail: [e-mail address]

Maybe some of us are going overboard a little to avoid the appearance of non-compliance, but I'd rather quote RESA than tell Title I'm not trying to be liable for getting funds to them. In all honesty, I'm more concerned about the latter.