Posted by Anonymous on 12/29/05 2:03pm
Msg #85068

How do I start?

My wife did some freelance notary work this last year. She ended up quitting because Utah passed a law requiring her to be licensed as an escrow officer in addition to being a notary public. So she changed her voicemail to say that she was no longer doing signings and to please remove her name from the caller's list. The calls have decreased dramtically, but she will still get a one or two calls the third week of any given month.

I take this to mean that there is still a decent opportunity to make money in this industry. However, I am NOT interested in becoming a signing agent. I want to build a signing agency. I have experience working with other start-up companies and I think that this could be an great low-risk low-cost venture.

I thought I would post here to field a couple of questions and to get some feedback from the community of notaries here, so here goes:

1. I know my wife hated working with a couple of specific agnecies because of their being late with docs, being slow on mailing commissions, etc. Were I to start a notary signing agency, what things should I avoid doing ABSOLUTELY?

2. As far as signing company policies go, what are the policies/practices that would characterize the *perfect* signing agnecy? Obviously I am looking for an agent's perspective here.

3. Since signing agencies do not actually witness signatures, are they required to obtain licensing themselves? If so what are they?

4. Please offer any advice you think might help me. It will be much appreciated.

Thanks,
Noah

Reply by Beth/MD on 12/29/05 2:48pm
Msg #85084

>>>1. I know my wife hated working with a couple of specific agnecies because of their being late with docs, <<<<

Late docs are a thing of this business. I've had last minute docs come from both SS and TCs so if this is something you can't deal with, don't get into the business.

>>>2. As far as signing company policies go, what are the policies/practices that would characterize the *perfect* signing agnecy? Obviously I am looking for an agent's perspective here. <<<
If you should ever find that perfect SS let me know. I'd love to work for a perfect SS. A good SS or TC would me to me a company that has good contact numbers/people available and that includes after hours. Also, I'd have to say that a company that always pays on time. In my book that would be 30 days or less, and hey, I'd even consider under 45 days ok. What I don't like are the crappy companies that I have to chase for my money. Another plus with companies is their willingness to pay a fair fee. No low ball garbage.

Reply by Roger_OH on 12/29/05 4:58pm
Msg #85109

Dose of reality...

Noah,

Not meaning to be rude, but your attitude of getting into this as an SS because it sounds like "low risk, low cost" is indicative of why so many SS have gone under. The reality is that it is neither low risk nor low cost, and if you had any experience as an SA you would be keenly aware of that. You are asking for trouble if you try doing this without ever experiencing, or being able to relate to, what your SAs will go thru every day, and "one or two signings the third week of the month" is not going to support anyone. This is not the best time to try starting up a new SS. The housing bubble may pop anytime, and many SS have already closed their doors this year; more will follow.

What will you do to attract good, competent notaries that are dependable and provide excellent quality? You're NOT going to do it for $50 a signing; you're NOT going to do it by making them wait more than 30 days for payment (or by not paying them until you get paid), or by only paying "trip fees" in the event of a no-show, no-sign, or rescission. Can you financially capitalize your venture to the degree you can avoid those hurdles, and do so consistently month after month especially when a title company hasn't paid YOU for perhaps two months? What would motivate an experienced notary to work thru your SS and share a fee with you, when they can market their proven skills directly to title companies? Where will you be when one of your $50 notaries screws up someone's $400,000 loan and costs them their rate lock (or does something illegal like backdating), and the borrowers want someone's head - namely yours, as the SS who hired the incompetent notary. Will you help raise the bar for NSAs and respect their professionalism by paying at least $75 for overnight docs? How then will you compete for title company business when many other SS will be willing to undercut you for that contract, as they don't mind paying their bottom-feeders $50? What will you do to keep your name off this board as just another dime-a-dozen company, or worse, a deadbeat one with payment or support issues that is posted here for all to see?

There's much more to it than just farming out signings and taking a cut; I didn't even begin to address the tax implications, E&O insurance requirements, dealing with numerous differences between state notary laws, hassles of email docs, purchase signings versus basic refis and HELOCS, reverse mortgages, and your own state business requirements to name a few.
As we advise new SAs, go back and read this board from the beginning; you'll receive considerably more education than I can provide in this brief space, and can make a much more informed decision as to whether this would really be right for you at this point in time. If you're going to do it, I hope you do so for the right reasons. Many SS before you have not, and are either gone or have very poor reputations to where only very new people will work for them

Reply by Beth/MD on 12/29/05 8:13pm
Msg #85157

Re: Dose of reality...

Reply by Beth/MD on 12/29/05 8:14pm
Msg #85158

Re: Dose of reality...

Sorry, hit the button too fast

What I wanted to say was Roger made some valid points I hadn't thought of when I made my initial response.

Reply by Noah Sebourn on 12/30/05 12:08pm
Msg #85294

Thanks for the replies!

Thank you for your feedback. I know how frustrating these deadbeat SS's can be. I was the one that had to listen to my wife's griefs with a particularly bad SS. In fact just recently, an owner of a signing agency launched a pretty nasty personal attack against my wife because she called looking for a commission that was 4 months overdue.

It frustrated me because, not only was someone rude to my wife (enough to get a man in a fightin' mood), but someone that obviously had VERY poor business sense was making money in this industry.

If others can do it the absolute wrong way and still make a profit, I can do the absolute right way and probably do better than they. I haven't just thrown together an LLC and started looking for TC's and Mortgage brokers for business. I'm looking for feedback and advice to do this the right way. Trolling these forums as well as others are simply the first steps.

So, the consensus so far is:
1. Don't think it will be easy. (I know this. Ive worked in financial services my entire career. Ive also helped start two very successful businesses)

2. Don't be a deadbeat service. For example, pay people on time. Pay more for quality agents. (not sure how to find quality agents. is there some sort of rating system? or should i just go solely by experience?)

3. Always pay out for travel. Always pay out extra for EDOCs. (again, I expected to do this from my wife's experience)

If there is anything else, it would be much appreciated.

Noah