Posted by Charles_Ca on 12/10/05 10:56am
Msg #81674

Stand by, things are going to get a lot tougher!

Going along with the article that Janet from CA posted below the Wall Street Journal recently had articles regarding the loan industry. Option ARMs which constituted 30% of all Jumbo loans were off 25% recently. Additionally investors are retreating from buying property as markets in previously hot areas are dropping off rapidly. This will definitely have an impact on the number of loans being signed. This trend is expected to last for another year or two. I can't post the location of these articles since they are by subscription and fairly lengthy. If anyone wold like the full articles I'd be glad to e-mail them as pdf files. Everyone have a great weekend.

Reply by Teddog_CO on 12/10/05 11:24am
Msg #81676

Good Morning Charles!

I know that things are getting tight. The interest rates I've been seeing as of late are climbing. Also more interest only loans for the first three years, reminiscent of The Great Depression era, or so I was told by my parents. People couldn't make their payments so they just made interest payments. I think that people a being squeezed by credit card companies that has raised their rates to 22 to 24% it appears that most of these people have a lot of that kind of debt. That's a little scary to me or it could mean nothing at all. The market is nothing to write home about either. It's very hard to tell where anything going in this country. Seems to be very unstable in any area.

It would be interesting to read those articles when you get a chance please email them.

I must add that it is not a bad idea to have a second job or some sort of second income. No doubt it is going to be a long cold winter.

My best to You!

Teddog

Reply by Teddog_CO on 12/10/05 11:29am
Msg #81677

OOP'S Forgot to say Thank You Charles! nm

Reply by anonymous on 12/10/05 11:32am
Msg #81678

Absolutely a second dependable form of work is needed with notary work, so one doesn't live and breathe from this unpredictable arena of work. Keeps one sane to only do this on a limited basis.

Reply by Teddog_CO on 12/10/05 12:04pm
Msg #81682

I agree with you anon. I believe that ultimately only the experienced notaries that have established their client base will survive. We have proven to be reliable as opposed to (the disappearing notaries) if there is ever a problem they know we will still be here a year from now. Several weeks ago I stated some of the problems that are now cropping up on the board with this low-pay notary foolishness, namely SS.

So in the future I believe that TC/Escrow companies will only be dealing with us directly, it's the safest and cheapest way for them to do business. The numbers are growing with my own clients' being TC/Escrow companies, less and less SS numbering about 25% that I will even do business with anymore. Like anything else when they are good, their great-when they are bad they are really bad. I have yet to chase a TC/Escrow company for my fee and recieve payment within a few days as opposed to 30 to 40 days, that's a Big difference in your cash flow. We are trying to run a business and do not have the luxury of the "a little extra money" or "just a hobby" approach to being a Notary. That is what makes us Professionals.

My best to you

Teddog

Reply by Charles_Ca on 12/10/05 12:18pm
Msg #81686

Well said, T-Dog!! NM

Reply by TitleGalCA on 12/10/05 11:52am
Msg #81680

I admire the likes of Brenda_TX and Calinotary as to the best my knowledge, they are full-time SA's, without the benefit of second jobs, and are self-supporting. I would guess most of this board either has a spouse gainfully employed or is doing this as a second income (present company included).

The reason I admire them is they are successful at this, and their posts are so valuable as they have this business wired down to a gnat's hind end, born out of experience and being in the trenches.

I know there are more of you self-employed and self-supporting SA's - and it's to you I wish the best of luck in the near future.

Reply by Charles_Ca on 12/10/05 12:16pm
Msg #81685

You're absolutely right TG. I wouldn't even attempt this business as a sole source of income, I kind of backed into it as an additional service form my real estate clients. I guess that is why I can afford to be a little more freewheeling and pick and choose among those signings I really want to do. I don't know Cali but Brenda is most impressive, so is Becca_FL, and a few others out there. There is a strong cadre of people here who have the knowledge nailed, including yourself by virtue of being a title officer. The unfortunate situation is that as long as this business is populated by part-timer attitudes its going to make it so much more difficult for those doing it as a business. I include myself among the part timers, although I try to do my part by not accepting low-ball assignments and keeping my prices up. A lot of people like to be able to say they are in business and so they buy their business. Buying your business is a lousy strategy to keep the business healthy. I'm not going away because I am locked into this business as a part of my larger business strategy but until everyone realizes that unless we organize and maintain a viable price structure we will all be prey to those who employ us, because we become just another commodity. Like hog bellies, beans, cattle etc., we are subject to the so-called organizations who keep pumping out gobs of disposable NSAs desperate to live the promised dream so that the SSs can continue to have cheap fodder.

Reply by Teddog_CO on 12/10/05 12:43pm
Msg #81690

Agree with You 200% Charles!

Until there is some kind of organization regarding Professional Notaries and their fees, standards,etc,..The circus will continue. The NNA is being the prime culprit in this situation by pumping out unprepared notaries. You can see that very clearly by some of the questions asked on this board. This is my prime reason for not offering answers to some these questions. I studied, and studied VERY hard before I ever accepted a job.

This my opinion only. There are so many things at stake when we assume this profession, even when you are a Seasoned Notary you can make an error , fortunely we are experienced and have been trained to spot them right away and correct them before they leave our hands. That is one of the reasons we go over every sheet of paper at least 3 times before we say "bye, bye" and send it on it's way.

No, this is not rocket science, but you surely better know what you are doing when you are out there. Anyone who thinks differently is a liar or a fool in my opinion.

Teddog

Reply by Shelley Weinman on 12/10/05 1:42pm
Msg #81701

Re: Agree with You 200% Charles!

I am a recruiter for a Signing Service and have learned a great deal from recruiting across the nation since May '05. I was commissioned in April 2003 and heard about the NNA in July 2004. I took the Signing Agent course and posted my free profile on this site in September.

My phone began to ring in November 2004 and did about 36 signings in the last year, as I can only do nights and weekends for now. I just received my Realtor license in July 2005 and I plan to go full time as a signing Agent in March 2006. I am working on a deal with my company and a local home builder to give me a set number of signings per month so I can make the leap from paycheck worker to business owner. I too agree, you must plan carefully.

This board has been a valuable tool for me and I read the board daily, as I recruit for my job.
Any extra wisdom from you experienced notaries is much appreciated for this Dallas, based Texas notary. I am thinking about doing the training program on www.justpointandsign.com to give me an even stronger knowledge base as a notary.

I believe in reciprocity and do my best to help other notaires I work with, to be successful. I encourage them to read your board, and tell them about helpful websites like www.sourceoftitle.com and www.allregs.com so they can find new markets to tap for revenue.

Any insights would be much appreciated -- Shelley Kay Weinman: [e-mail address]

Reply by SSEmobile on 12/10/05 2:12pm
Msg #81704

Re: Agree with You 200% Charles!

Shelly, that was a very nice post full of insight. Thanks for contributing here, please come back
often! We all need input from your side of the business, too.

Ted and Charles (and others, of course), good points as usual. This is something I am also seeing from all my contacts in the industry, especially on mortgage exec at CTX, things are being affected by the moves in interest, for sure! It's not the industry's fault, of course, just part of the natural cycle.

On the other hand, in this cycle are some "new" issues.

Signing Services : We can probably guess that with the market squeeze that is already starting, there will be fewer of those to contend with when it's all said and done.

There are also probably WAY too many signing agents, also as obvious. Due to the promotion of this business as being one where you can "make a great living if not a huge fortune" in the last few years there will be some who shouldn't have even bothered to pursue it. They would have never made a go of being in any self employment type business, don't have the education or skills and will likely find something else to do in the next few years.

So what does it mean to the rest of us, like those who also have other business interests, like me who carries four business cards? (and dabbles in three other areas without a card to show for it?) ......... if we stay informed, stay current with education, add new additions like eSIGNATURES and fingerprinting, we will emerge stronger and healthier when all this shakes out and the cycle reverses again.

So .......... if you're in it for the long haul, and willing to do what's necessary, stay with it, it COULD be a great thing for those who stick with it and deserve to survive!

Reply by Shelley Weinman on 12/12/05 12:29am
Msg #81886

Re: Agree with You 200% Charles!

I appreciate your reply. My title company is planning to run background checks on our signing agents sometime next year. We will be paying for the active notaries in our database and will ask new recruits to pay for theirs. Have you noticed anyone else asking for this yet?

I am not sure how seasoned professionals will respond. Will they be pleased since this will likely screen out the ones doing it for the extra cash? Or will everyone object?

I was told the lenders will require the background checks to comply with the Patriot Act and to reasure the borrowers that the notary we send out to their home can be trusted. I thought that was the purpose of the notary bond.

Shelley

Reply by BrendaTx on 12/12/05 2:20am
Msg #81893

Shelley - you queried...

**I am not sure how seasoned professionals will respond. Will they be pleased since this will likely screen out the ones doing it for the extra cash? Or will everyone object? **

My tenure is only two years, however, for what it is worth, you will meet with some resistance. Personally, I have paid for screening in two cases and consider it a cost of doing business. I have not been sorry in these situations.

If every company I work regularly for wanted me to pay for a screening I would do it and believe it was worth the money to keep the client.

I believe the most FAIR way to go at this would be to offer to take the screening cost out of the first assignment. In the past, I have heard notaries were burned because they agreed and never received work. However, the one running the "background" checks were raking in $35 or more per notary, but it did not give them work.

Another idea is to consider those of us who have a concealed handgun license as cleared. In Texas you cannot have a CHL if you have a record of any kind.

Others will strongly disagree with me and may or may not state this, but it is pretty common to have a good deal of opposition to this because of bad past experiences.

Reply by JanetK_CA on 12/13/05 4:25am
Msg #82102

Re: Agree with You 200% Charles!

Not sure if anyone is still reading this far back ;>), BUT the state of California does a background check on every person before it issues them a notary commission. Unfortunately, that doesn't help distinguish between the amateurs and the professionals or those who may be lacking in some integrity/ethics or who are just a bit flakey... I doubt the kind of background checks you're talking about will do much good to help make those distinctions, either, unfortunately.

Reply by Charles_Ca on 12/10/05 2:18pm
Msg #81707

The key to success is longevity in many businesses!

Greetings Shelley and welcome. Congratulations on becoming licensed. I don't know if you are a member of any Boards of Realtors yet but I would recommend that you go for the GRI designation it is a know fact that GRIs earnings are significantly better than others'. I have found that in most service businesses longevity is the key. You make alliances and you stick with them through and thin. Unfortunately we are headed for the thin period and as I've posted before the real estate cycle lasts about 10 to 12 years. You are fortunate since Dallas is one of the major cities that has not felt the brunt of the slow down but as in any investment cycle there is a lot of misinformation. People are trendy and there are trendy investments. I invest in real estate and I was only able to invest in condominiums in Southern California this year because by my analysis that was the only under-priced market: everything else was way overpriced. I hold my properties and don't believe in selling since there are many ways to make money of held property.

We have seen a great build up in the number of notaries commissioned recently, you will see the same build up in the number of real estate licensees. In the last few months of the boom you didn't have to sell people just threw money at you. We are going to see a large number of these new licensees who will not be able to weather the slump and that will be good for those who can. I am surprised that some of these notary mills still have tons of applicants because word should be starting to get out about it being increasingly difficult to earn that $100,000 that is set up as the expectation. I'm also surprised that in this litigious atmosphere someone hasn't started a class action against some of the these notary mills.

Anyway welcome and good luck I'd like to hear some of your scheduling war stories, I am sure that they would be educational: I suspect that you have seen an overall decline in the quality of work in the notary field over the last few years.

Reply by Sylvia_FL on 12/10/05 1:02pm
Msg #81696

I am also a full time SA without a second job. My husband is retired, and his retirement pay just pays the mortgage and sometimes the light bill. My income provides everything else.
This time next year, though, the mortgage will be paid off and I will be able to slow down some more.

Reply by Teddog_CO on 12/10/05 1:35pm
Msg #81698

Hi! Sylvia

Sylvia,

I am afraid that none of us will be able to retire or at least not retire completly. That is one good thing about being a Notary your age works for you. Now that's a good thing! I really like your posts you are very helpfull and charming, it's always good to hear from you.

Hang in there Kiddo!

My best to you
Teddog