Reply by JanetK/CA on 6/4/05 6:16pm
Msg #42383
In California, we are only required to have a bond, but that only covers others - not you. It's strongly recommended that you carry as much E&O insurance as you can afford. Keep in mind, though, that even E&O insurance only covers you for notarial acts - not other aspects of being a signing agent.
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Reply by PAW_Fl on 6/5/05 6:54pm
Msg #42548
Re: E&O coverage
>>> What can get the NSA in trouble for other than the notarial acts? <<<
Oh, where to begin.
Simplistically, anywhere you offer your opinion, guidance or direction to the signer. Specifically in places like the RTC, misinterpreting the documents, telling the borrowers untruths, etc. UPL is not limited to notaries. Only attorneys are allowed to practice law (and someday they may even understand what it is THEY are practicing), so the SA must be very careful in what they do.
The notary portion of the signing is very small in comparison with everything else in the loan package that you are charged with as an 'agent' of the lender, title company and/or signing service. You must remain astute, impartial, unbiased and above all, not specific in your explanations. You can describe the purpose of documents, point out things that are printed in black and white, and show the borrowers where things are in the document, but you cannot explain "why" things are the way they are. You are not there to sell the loan, or offer "reasons" (which become opinions on your part) why the bottom line states they are only getting $5,000 back instead of $9,000 as expected, or why the note says the interest rate is 7% and they were expecting 4%.
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