Posted by LarryTN on 3/26/06 11:29am
Msg #108651

Pending Legislation

Just thought I would repeat information that came out in this issue of the Notary Bullitin for those who may not be aware of it. It only affects those notaries in the state of Tennessee.
Tennessee notaries need to write your state representatives opposing House Bill 1653 and Senate Bill 1789. This legislation wants to take signings out of the hands of independent notaries and have all signings done in the lender's office. It states "That all loans for residential real property must be closed only in the office of the lender or the lender's agent." This bill is supposedly designed to cut down on predatory lending, but in my opinion, it will essentially turn the fox loose in the hen house!
Just a heads up for those notaries in Tennessee....

Reply by SueW/Tn on 3/26/06 1:24pm
Msg #108662

After reading (re-reading) this bill...this will have a huge impact on lending institutions also. And think of the SS that are located here in this Great State...ugh! I have done my duty and sent letters out, also sent e-mail to close business associates etc. to help. I can understand the government's leary eyes on the bottom lines of the lender's but it seems to me they're starting at the "wrong end of the snake". Hmmm...do you suppose the lender's lobby's brought this about? Those smaller lender's etc. would have to totally revamp things here in this state or go into "partnership" with the larger ones in order to close a loan. This smells like they're trying to set down some requirements for the lenders so that those huge fees come to an immediate stop not recognizing that those fees are easily hidden. Instead of charging $500 settlement fees they'll just slide them in somewhere else.

Reply by LarryTN on 3/27/06 7:25am
Msg #108743

Precisely! I wrote to the committee (Sen Cooper heads it up) handling this legislation and told them that it would be like turning the fox loose in the hen house!

Reply by Paul_IL on 3/26/06 2:00pm
Msg #108669

Re: Pending Legislation-Question

That all loans for residential real property must be closed only in the office of the lender or the lender's agent."

How will they determine lenders agent? Technically the title company could be acting as the lenders agent. If you the notary has an office to conduct the closing then you could be contracted to be the lenders agent.

Instead of sending letters when you really do not fully understand the proposed laws inpact on your business I would suggest you contact your rep or senator by phone and ask how this will effect your business? What exactly will be required to be the lenders agent.