Many things in this business that were mostly SOP are not anymore. Signings, or real estate and Loan ‘closings’ done out-of-office were done by title company employees that could and would ‘travel’, attorneys, or professional NSA’s that knew the business, and had experience with/and had done many closings. The fees charged the borrower, passing through title for this remote closing service, usually was in the $150 to $300 area. Most business was local and steady. If a title company had an out of state closing they usually asked a sister title company to do a ‘courtesy’ closing for them. Giving up their ‘closing fee,’ but keeping the policy fees. Most of these mortgages were held by (portfolioed) by the banks/credit unions, or sold to investors, or quasi/government agencies. Then two things happened, the government’s policy was to put everyone in their own house, and someone said ‘derivatives’. Suddenly there was a big market for mortgage backed securities, especially government ‘insured’ mortgages and lenders started branching out, title companies that started to do national business using attorneys, or other title companies, now had thousands of orders, and needed NSA’s, so the NSA business was off and running. Also the Signing Services started to come into play where title was too busy or did not have the staff to find notaries and schedule appointments, they called the SS to do it for them. Some started their own ‘in house’ SS (like FASS). Then the NNA got into it and churned out many many thousands of hopeful, inexperienced “Notary Signing Agents” most that would take a job at any price just to learn, and get a bit of actual experience. Still things went well for several years. But then there are more and more notaries, willing to work for less and less. And now the low-ball SS started up just using those willing to work for virtually nothing to gain experience, hoping to raise their fees someday. At the same time the market for mortgage backed derivatives stopped cold. Big investment firms were stuck with billions of dollars of mortgage backed packaged securities they could not sell, and didn’t know how to service. The re-fi business almost stopped. Banks, investment companies, lenders, and title companies by the thousands went out of business. So now we are left with thousands of NSA’s willing to work for nothing, or perhaps a small loss, and no business. Like the low-ball SS a few title companies that are still doing national business, that need every penny to survive, have discovered that they too can offer (and find NSA’s to take the jobs) $50 signing fees, and keep the difference (from what they charge the borrower). It’s a sad state of affairs. We NSA’s have put ourselves, and the good well paying SS out of business!
How many times do you think a notary that will do a job for ND for $50, says to a SS that offers $125 “Oh no! I charge your competition $50, so to be honest and fair, I’ll charge you only $50 too!” Yeah….I would sure like to see that! JMO
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