Posted by Just checkin' on 6/21/04 5:31pm
Msg #3301

ID Fraud Prevention Affidavit

I had one of these for a signing appt earlier todya./ It's one of those where the borrowers fill in their info, then I notarize. After the notary block, there is a statement addressed to Settlement Agent asking for acknoweldgemet that the ID has been verified and under the sig line is "Settlement Agent or Notary Public".

In CA I can't notarize my own signature, but since this is after the notary block and spot for the seal (altho I had to attach a loose certificate), is it OK for me to sign this as Notary? (I will cross out Settlement Agent.) TIA!

Reply by Gracie on 6/22/04 1:07pm
Msg #3327

I wouldn't sign it. One of the primary functions of the notarial office is to properly identify the customer. There's nothing in the law that says I have to verify to the lender that I've done my job - that's what my signature and seal on the document guarantee.

Better explain to the lender why this is not needed.

Reply by PAW Notary Services on 6/22/04 3:46pm
Msg #3340

Gracie said:

I wouldn't sign it. One of the primary functions of the notarial office is to properly identify the customer. There's nothing in the law that says I have to verify to the lender that I've done my job - that's what my signature and seal on the document guarantee.

- - - - -

Please remember that you are wearing two hats: Notary and Signing Agent. As a signing agent, you may need to provide satisfactory identification that the lender demands. Consider that the note the borrowers sign is for a substantial amount of money. This document is typically not notarized. The lender needs to be absolutely, positively sure that the persons signing the document are in fact, the persons who are obligating themselves to make the payments.

Lenders have different rules for ID verification than do the notarization of documents. We must follow both sets of rules, applying the appropriate set to the circumstances that call for it. AIV's are very common and required by many lenders so they can be in compliance with the USA Patriots Act. This compliance requirement has nothing to do with notarial law, policy or procedure.

Reply by HisHughness on 6/22/04 5:21pm
Msg #3345

Thanks, Paul. I am continually gratified that you offer us your insights, and continually impressed at their relevance.

Reply by PAW Notary Services on 6/22/04 11:26pm
Msg #3369

Why, thank you, your Hughness. I too enjoy and learn from your contributions. Please continue.

Reply by Gracie on 6/23/04 1:46pm
Msg #3404

Hmmmm. I've always relied on the notary public law in my state to guide me in what I can and cannot do.

If I do what the lender wants me to do, what protection do I have if I do something wrong, illegal, etc.? There is no Signing Agent Law. . .

Reply by PAW Notary Services on 6/23/04 2:08pm
Msg #3405

Congratulations on your deduction. This is probably the biggest, most worrisome problem facing signing agents. When you are acting as an SA and not a notary, there is no protection. Your notary bond and E&O is for your notary work and nothing more. So what should you do?

First and foremost, be extremely careful with the lender and title documents. Second, you may want to investigate and obtain general business insurance to cover this situation. Talk to you local insurance agent for help in pursuing the proper path for your protection.

Any non-self-serving insurance agents out there care to chime in on how to handle this liability?

Reply by Gracie on 6/24/04 10:02am
Msg #3451

>This is probably the biggest, most worrisome problem facing signing agents.<

Judging by the comments and questions on these forums, I don't think it is. It appears that the biggest, most worrisome problem is, How do I get business? I'm not sure that many SAs are aware of the liability, especially if they are explaining documents to people.