Posted by Pamela on 5/26/06 7:38pm
Msg #122581

Loan Officers and Notarization Question

In California, a real estate agent, who is also a notary, can notarize real estate documents used in his or her job-related transaction.

Therefore, can a loan officer, who is also a notary, notarize loan documents and complete signings for his or her borrowers?

Thanks,

Pam

Reply by KS_king on 5/26/06 7:47pm
Msg #122584

Per Kansas law, you cannot notarize documents if you have any interest in the transaction. Even if it permissable in your state, the advise is not to do it because it can be challenged in court - if something happens and it goes to court. For example, I was advised not to notarize documents signed by family members.

Reply by Premier Signing Services on 5/26/06 7:58pm
Msg #122585

I would have ot agree on this one as well. Even if it is permissable in your state, I would advise against it. Your notarization of the documents could call everythign in to question and may not hold up in court since you have a direct interest in the documents being signed and executed. This would also leave the borrower open to make accusations that you had made claims or promises on the loan that you are not able or did not uphold. It could void the entire transaction as well as result in action against you as a notary and as the loan officer.

Reply by Pamela on 5/26/06 11:35pm
Msg #122635

THANK YOU ALL VERY MUCH! n/m

Reply by John_NorCal on 5/26/06 8:04pm
Msg #122588

Well as someone from California. I disagree with the out of state SA's. This was settled many, many moons ago by the Secretary of States office. As a signing agent/notary public you do NOT have a financial interest of any consequnce in the transaction. You are an impartial witness and as long as you remain so, you are o.k. As a loan agent and as a real estate agent I did my own signings. Some times it's in the best interests of the client to do so. As long as you are not on title, or lending your own money you can notarize to your hearts content.

Reply by Signing_Doc on 5/26/06 8:56pm
Msg #122595

to paraphrase Charles Dickens from Oliver Twist "...if that is the law, than the law is an ass..."
Yes, as a notary you ARE an impartial witness, BUT as a LO or Real Estate agent, you DO have an interest in the closing of said loan. Here in Las Vegas, Loan Officers (especially the ones in my wifes office) can not do their own closings. It is a matter of appearance. I would recommend that you NOT do it, because you never know when these things can BITE you on the behind. As a LO, would you write your OWN loan? You shouldn't, because of the very same thing. You CAN put together your own loan, i.e. getting the needed docs, getting the best rate etc, BUT you should have another LO's name on the package as the LO of record. Again, if this is allowed in California, then so be it....but not everything done is California is the right thing to do. (55 years ago, I was born there and lived there for 24 years). They don't call it "The Land Of Fruits and Nuts" for nothing. Nothing against you John, JMHO. Doc

Reply by Pamela on 5/26/06 11:36pm
Msg #122636

AGAIN, THANKS TO EVERYONE! n/m

Reply by Annette_CA on 5/27/06 3:44am
Msg #122655

Re: AGAIN, THANKS TO EVERYONE!

John, it is so cool to see another who can quote the book. There seem to be quite a number of Notaries in my area who apparently know nothing of the law as it applies. I've also experienced a few signing companies who troll for those who are apparently (and happily?) oblivious to the law.

Reply by LawrenceOK on 5/27/06 8:17am
Msg #122663

In Oklahoma as a notary public, we can NOT have any financial interest (other then our fees) in any document we notarize. We are to be an impartial unbiased witness. This is straight from the SOS when I inquired about some of these companies that tell you if the loan don't close, you don't get paid.

Loan Officers, Real Estate Agents and Brokers all have a financial interest. It's called a commission.

Reply by Raimond on 5/27/06 5:06pm
Msg #122739

Per the 2006 California handbook..... http://www.ss.ca.gov/business/notary/notary_hdbk.pdf

Page 12, under conflict of interest states that an agent does not have a financial interest.... I take this as a RE Agent.

It also names who would have a interest and a RE Agent is not one of them.