Posted by Mitch_MD on 11/23/05 5:41pm
Msg #78461

Illegal business practices in Maryland

Had a rep from one of the bottom feeder SS companies call earlier this afternoon, wanting me to do a last minute signing within a short distance of my house. I said I'd be happy to do the signing. Then she asked my price, which I gave. She feigned surprise and tried to talk me down to $75, which I declined. Then she tried to convince me to give them my "discounted price", to which I replied the same cost level as the first inquiry. She then asked me why I wouldn't go lower, and I responded by telling her of the Maryland state requirements for Title Insurance Producer (TIP) licensing, bond and E&O coverage, and continuing education costs.

She said they DIDN'T NEED A NOTARY WITH ALL THAT, that they just needed a simple notary to go do a signing.

At this point I told her that if she went the route with the "simple notary" she was breaking the law and could be penalized for it, that the TIP is required by the state for a notary to perform a closing. She said she didn't know that and would have to check and call me back. Needless to say, that's the last I heard from her.

Folks, the penalties are very real for breaking Maryland state law, knowingly or unknowingly. Depending on the severity of the violation, fines can be as high as $50,000 or 1 year of prison OR BOTH. I know some will respond that the state doesn't appear to do a good job of enforcing the law, but I have recently read of them doing so in one of the insurance trade publications and the offending party was fined $20,000 for their violations and also lost their TIP license.

Think about the consequences before you hire a "simple notary" in the state of Maryland; they could have a lasting impact on you, your business and your family.

Reply by JD_inMD on 11/24/05 5:53am
Msg #78523

Mitch, what pub had that info? I would be interested to read it.

Reply by Mitch_MD on 11/24/05 7:09am
Msg #78525

JD, the publication is "Insurance Advisor Monthly" (http://www.iamonthly.com/) and covers MD, DC and VA insurance producer news, including title. The blurb I'm quoting came from two issues ago, in the back of the mag, in the section where they list state violations and penalties.

It's a free subscription and has some interesting articles on occasion, but not a lot directly related to signing agents.

Reply by Anonymous on 11/24/05 9:19am
Msg #78534

It is totally ridiculous of Maryland to require a notary to have so much extra. Let's face it. This is nothing more than one agency deciding to corner the market in that state. If you don't have that license you supposedly cannot work as a signing agent. Please explain just what the big difference is between a loan closing in Maryland and any state that doesn't require this extra garbage. Maryland is requiring you to have this license and then you're going to whine and belly ache about low fees. You know what, perhaps one should consider releasing that requirement. After all, what difference does it make? You're only there as a notary. It is the most expensive, unnecessary requirement imposed. If Maryland notaries are finding fees dropping and the expense of staying in business still growing, why not lobby to get the ridiculous requirement dropped. Laws can and do change.

Reply by Art_MD on 11/24/05 10:57am
Msg #78539

Trying to look at it from the states point of view....
There is title insurance involved and they want to be able to tie the signing, where they say the insurance is "produced", thru a chain to the title company. We have to have an apointment from the title insurance underwriter to do a closing where they are the underwriter. So, if there is a problem, then the state can say, "your rep was there !!!" and therefore any title insurance problem is yours.

Art

Reply by Brunella Hart on 11/24/05 1:25pm
Msg #78542

What's the big deal? I guess you're wanting to keep the status quo as it is because you've already spent all of this money on the license and such. I know the bond isn't cheap and the whole continuing education thing is really for the birds. I've got the guts to say that I've done several of those closings in Maryland without all of the licenses. I no longer live Maryland so I can now say this out loud. As for you Mitch, I took a ton of work from you. Yes, I was near you. And Art, I've seen your name on a few things as well. Believe me, my loans were just as good as yours. I am not nor ever was interested in being a license insurance agent which is what Maryland is trying to say is needed because of the whole title insurance subject. That's bull. All I needed was a notary stamp and a willingness to work with the many title companies that just saw it the same way I do. Now that I don't live near Maryland, I feel I can say this out loud.

Reply by Art_MD on 11/24/05 5:42pm
Msg #78553

I agree. The who system is for the birds. I don't think I've ever had a question re: the actual title insurance, except to explain to the borrower what it is.
I don't do closing any differently than I did before I got licensed. But, the whole poiint Mitch is making is that if it's the law, we should abide by it. And, more personally, if I spend the money to obey the law, why should I tolerate others doing a job without the overhead? They can make the same money on a closing by charging a lower rate since they don't have to amortize the licensing costs. Lets plan on a level playing field.

Art

Reply by BrendaTx on 11/24/05 10:09pm
Msg #78565

It would not hurt my feelings one bit if Texas put a law like Maryland has into effect.

WHY SO?

If all states did something like that, as a result, the non-serious-pocket-money-making NSAs who are tap dancing through for $40 here, $50 there would never be an issue. Instead, they'd send chain letters or sell Amway to get their spending money.

Fees would become more stable and the notary closer would have a "real" occupation that carried a degree of recognition (or maybe even respect) as something other than a mobile moron herding around a dusty car littered with Google Maps.

But, my perspective is full-time SA...

Reply by JD_inMD on 11/25/05 5:42am
Msg #78577

I agree Art that those who are not playing by the rules have an unfair advantage over those that do. I know I get undercut all the time. I also agree with Brenda that by licensing it will weed out most of the part timers, but the state needs to aggressively enforce the law. All it would take is 1 person from MIA to randomly go from courthouse to courthouse pull a few deeds and match up the notaries to the MIA producer list. By the state allowing unlicensed notaries to work it has the effect on the SS's and TC's that they can find the $40-$50 notaries so why pay a licensed one more? It was the same when I worked construction, we were making $23 an hour until the undocumented workers started arriving and would work for $15 an hour. I know they were undocumented too because they could never get a pass to work on government property.

Reply by Mitch_MD on 11/25/05 6:48am
Msg #78580

Anon, I was addressing the fact that the bottom feeder SS was trying to bypass state law and was willing to do so illegally, nothing more.