Posted by lulu on 5/14/06 7:56pm
Msg #119835

Origination/History of the Notary Signing Agent-PAW

Paul,
You seem to be a major resource for so many different topics. I have searched to no avail for how or what law allowed the NSA to come into being. Maybe I'm using the wrong keywords to search both on notrot and on the web. Would you have any information or links for this type of information? Anyone else who may have info also. Much appreciated.

Reply by BrendaTx on 5/14/06 8:35pm
Msg #119842

http://www.nationalnotary.org/common/content/infoDetails.cfm?awardID=48

This will get you started.

Reply by Anonymous on 5/14/06 8:45pm
Msg #119843

Prior to the year 2000, when a person wanted to buy a house or refinance
their home they contacted their bank or the mortgage company for a loan.
After filling out mounds of paperwork the “borrower” (a homeowner who
borrows money) would drive back to the bank to “close” the loan. Because
most banks are only open during business hours, the borrower would often
need to schedule time away from work and be inconvenienced. The documents
were then notarized by a notary (who probably worked for the bank)
and two witnesses were present to witness the borrower’s signature.
But as interest rates plummeted lower, the real estate field became very
competitive. In order to compete, lenders were forced to offer special incentives
to borrowers in order to win their business -- like coming to the borrowers
home to close the loan at a time convenient for them. It was about this
same time that the UCC (Uniform Commercial Code) law was changed
allowing a notary to serve as a witness as well as perform the notarization.
(Two witnesses were no longer required.) This is essentially when the job of
“notary signing agent” (as we know it today) was born.
But the notary signing agent field is not really brand new. I have personally
spoken to notaries who have been working freelance for many years as a
notary signing agent before the “notary signing agent” field became well
known. Therefore, the field is not really brand new -- but brand new to the
masses.

Reply by lulu on 5/14/06 9:03pm
Msg #119844

Thanks to both of you for the info and leads.
Brenda, that is interesting to read about Sue. I understand she was very instrumental
in the initial onset of the SA field. I read something somewhere else about her. I like to hear
those women entrepreneurial stories. I've read books on several. Thanks again.

Reply by BrendaTx on 5/14/06 10:26pm
Msg #119857

FWIW - I have not been in this business that long...I have just read about it. This is my 3rd year.

Reply by Sylvia_FL on 5/14/06 10:10pm
Msg #119856

When we refinanced around 1989 a notary came to the house with the docs for us to sign.

Reply by lulu on 5/14/06 9:24pm
Msg #119850

Wasn't there something in the laws that restricted the use of other than a loan officer or attorney and/or that docs had to be signed at an office? Wasn't that part of the law changes also that allowed wide use of notary signing agents?

I'm just committing from memory some things I had read and now I can't find those articles anymore.

Reply by PAW on 5/14/06 10:09pm
Msg #119855

Other than what has already been provided, I really don't know the real story about the beginning of the "Notary Signing Agent" other than what I learned from the old NASA and Sue Pense.

But I can tell you this, I've never, in the 40+ years that I have owned property, completed or closed a loan at a bank. Most typically, before the NSA arrived on the scene, in the last half of the 20th century, it was done in an attorney's office, title/settlement office or most often with purchases, at the realty or mortgage company offices.

Actually, as far back as 1978, title closers would travel to client's homes in rare situations along with the loan officer and/or broker. So, I guess that would qualify as the first "NSA" that I know of (since the title closer is typically also a notary public). I know this because a friend of mine needed to close on his home and was incapable of making it to the RE office to close. (I was a witness to transaction.)

Reply by Roger_OH on 5/15/06 12:48am
Msg #119870

My understanding was that a law was passed around 1997 allowing banks to do business across state lines (where they could also sell insurance, securities, etc), which created the increased need for mobile notaries in areas they could then service beyond their home state.

Reply by lulu on 5/15/06 11:02am
Msg #119910

Yes Roger, this is the type of information I read somewhere that I can't find now. Something with changes to the laws that allowed insurance, securities etc to intermingle their services.
Darned if I can figure out where I read that. I thought it said sometime in the late 90's. It's just bugging the heck out of me that I can't find where I read that.

Reply by BrendaTx on 5/15/06 6:56am
Msg #119877

I have only seen loans on purchase / sells closed in title and law offices. Never at a bank. I have done three in a Jack in the Box.

Reply by sue_pa on 5/15/06 7:02am
Msg #119878

In my area, we closed the loans in the bank office until the early to mid-80s. You also took your own lawyer with you because they did the title work.

Reply by John_NorCal on 5/15/06 9:14am
Msg #119894

Since my first involvement in real estate way back in 1974, real estate closings were conducted either in the title office or the Realtors office. Refinancing were usually at the title company, some times at the lenders office. I first answered an ad for a signing agent in 1993, the ad was placed by a lady out of Los Angeles who started a signing service. I did quite a few loans, but then she kind of lost track of what she was doing. Didn't really have a complete handle on the mechanics of the process.