Posted by Harry [NR] on 8/1/07 6:44pm
Msg #203292

NNA Certified and Background Screened and Convicted Criminal

Hey, I'm posting to solicit advice from the signing agent community. For those of you who have been following the National Notary Association's signing agent certification and background screening program, you may already be familiar with what can possibly be regarded as a critical flaw: the fact that NNA is not checking alias names against criminal records.*

What does this mean? Notary signing agents with a criminal history who have simply changed their names - whether by marriage or any other course - can easily avoid detection by the NNA program.

In fact, as it turns out, the first "NNA Certified and Background Screened" notary that we cross-checked under the NPBC program had disqualifying criminal convictions. Around 10 items were listed on this person's background report under an AKA. Here are two of them:

Assault on a Government Official (Convicted)
Simple Worthless Check (Convicted)

Maybe I'm naive, but I don't think having these types of convictions on your record warrants certification as a trained and background-screened signing agent. It also seems kind of insulting to those people who are not "certified," yet have no criminal records.

I have no idea how many convicted criminals the National Notary Association has certified, but I think Fidelity had something when they told me the NNA check was not sufficient in their eyes. The last we spoke, Fidelity, like NPBC, was running multi-name/multi-county checks, which often cost about $100. (In contrast, the wholesale cost of the NNA check is closer to $35.) The Fidelity person told me at the time, "You won't believe the things we turn up. Weapons charges..."

So, does anyone have any advice on how this should be handled? At the very least, I was thinking that title companies and lenders should be made aware of the risks of the NNA certification, as well as the fact that the NPBC Level 3 certification is similar to what Fidelity has been doing. Some of those companies include:

First American Lender's Advantage
Fiserv Lending Solutions
LandAmerica OneStop
National Real Estate Information Services (NREIS)
Stewart Mortgage Information

I have communicated the advantages of the NPBC program to vendor managers at some of these companies and my communications have been largely ignored.

Do you think they, in turn, have communicated the risks to the lenders they represent? It's one thing to say you're checking county-level criminal records, OFAC, etc., but it's something else entirely to omit the fact that you are not checking a person's AKAs, which is certainly the likely place for criminal activity to be hiding.

Harry
Notary Rotary

* This is the case with all NNA-commissioned Lexis Nexis reports we have seen.

Reply by Lisa Prestegard on 8/1/07 6:54pm
Msg #203295

Regarding notification of Lenders

Harry, I think it is the responsible thing to do. I would start by notifying all major players in the Title Underwriting field, including LandAm, The Fund, Chicago Title, etc. with a "Bulletin" of sorts, highlighting what you've just shared with us.

At the end of the day, it would seem to me that the Title Underwriters are most culpable when the s**t starts rolling down-hill as it pertains to the loan signing process.

Money well spent on my NPBC. It has been accepted by each and every TC and Lender I've worked for
Thanks, Harry!

Reply by JohnnyB on 8/1/07 8:12pm
Msg #203315

Re: Uh, I think he has already done that and was largely

ignored

Reply by John_NorCal on 8/1/07 6:57pm
Msg #203298

I think this all points out that those states, like California, that have a state mandated, live scan, background check have met the purported demands of the GLBT act.

**So, does anyone have any advice on how this should be handled?**
Since you state that your communications have been ignored, I would recommend bringing this to the attention of governmental figures. After all NNA said they have come up with their program in response to governmental requirements.

As to your question about NNA communicating the risks, NO WAY have they done that! They probably glossed over facts and tried to dazzle them as "the representatives for notaries nationwide." They prove more and more each day that they are strictly a profit making business with a substandard product producing mediocre "Certified Signing Agents."

Reply by MelissaCT on 8/1/07 10:33pm
Msg #203343

Re: NNA newest NSA Today advertising states

and I quote: "Certified and Background Screened will soon be your license to perform."

Big, bold print on the back cover...Vol. VI Issue 1 Summer 2007

Reply by Charles_Ca on 8/1/07 7:36pm
Msg #203305

In my opinion Harry, you should be communicating this fact

to lenders who use the title companies if the title companies are not responsive. This situation is a major security breach and the NNA is providing a false sense of security with their so-called backgkround check. Howeve if one is to read the fine print on the background check from the NNA one will find that the NNA accepts no responsicbility for any inaccuracies in the check. If they don't stand behind a product that they tried so very hard to push onto the industry how can anyone trust anything they do?

Reply by LisaWI on 8/1/07 7:54pm
Msg #203311

Re:I agree, go to the top, the lenders

I was told your BGC was not as good or indepth as the NNA's by a certain company. No names please. This proves different. I was also told this whole thing started as a way to passify clients (lenders) of a certain company and they went to the NNA as a one-stop resource for a BGC. Was also told they are not exactly happy with the way the NNA handled this situation.
Bottom line, the lenders have a right to know, especially if they are the ones who requested this action from what Im being told, that a comprehensive BGC is being done by Notary Rotary and its above the NNA's.

Reply by ToniK on 8/1/07 9:11pm
Msg #203323

Re: Re:I agree, go to the top, the lenders

Well if you are a public official, being that we are notaries...doesnt the State do a background check before commissioning individuals? How does a criminal become a Signing agent if they arent Notaries? Am I missing something?

Reply by Sylvia_FL on 8/1/07 9:34pm
Msg #203327

Re: Re:I agree, go to the top, the lenders

Toni
I know of one notary in Florida who was found by the Florida Bar to have engaged in UPL, and was fined very heavily by the State. She is still a notary.

Reply by LisaWI on 8/1/07 9:48pm
Msg #203329

Re: Tony

all states are different in their background checks for notaries. Some are very comprehensive and some are lax, like Wisconsin, where here they only check at the state level and Im almost positive they dont check for alias's or AKA's. Its very easy to become a notary here. And after talking with quite a few people here, some didnt even know there were notary laws if you can believe that one.

Reply by LisaWI on 8/1/07 10:02pm
Msg #203330

Re: Tony-Ooops I spelled your name wrong Toni :) n/m

Reply by Julie/MI on 8/1/07 10:21pm
Msg #203338

Toni

Michigan does not do background checks, but the law says the state may if they want to. If your state does a routine check, Toni, it's reasonable to assume all states do a check, but they don't.

I went with Axiom and they did find the woman's identity that mine is mixed with, so I am impressed with them. Luckily neither one of us have a criminal past.

My problem is that there are two Julie's that have the same social security number except for the first three digits and they are transposed on her credit report and it makes my life heck.

Reply by NCLisa on 8/1/07 10:29pm
Msg #203342

I've worked at law firms that handled cases where a person wasn't hired or was fired due to false information in background checks. They were all cases were there was a person with the same name that had the criminal record, and not our party. I'm not a fan of Background checks, especially when they check your credit report for any information at all.

Reply by MichiganAl on 8/1/07 10:37pm
Msg #203345

Certified and Background Screened and Convicted Criminal

Regarding your last question, I'd guess that it's highly unlikely that the vendor managers you've spoken to have informed their lenders of the possible gap. That would be tantamount to saying, "Hey, you know that really neat background check that we sold you on? Well, it turns out that it's got more holes than Swiss cheese." I would present my case directly to the lenders. They'll respond to pressure from their lenders much more readily. I think a side by side comparison, yours versus theirs, would be an effective way to highlight the difference. Of course, you're fighting the massive publicity machine that is XYZ. Tough to fight them when they have the ears of so many. I'm sure they'll find a way to spin it.

Reply by ReneeK_MI on 8/2/07 4:15am
Msg #203367

The best way to fight fire is with fire

As Alex points out - the "publicity machine" is where this 'fire' is at. I'd think the general public would find the background check failure to be news worthy, as they're the ones opening their front door to convicted criminals carrying all their personal information.

Reply by LisaWI on 8/2/07 7:01am
Msg #203368

Harry...Please keep us posted on this issue

Im confident you will think of an ideal solution and Im looking foward to seeing it. You're a smart business man and you know what is right from wrong. Your points are very valid and should be acknowledged as such by companies and notaries.
To all of you at Notary Rotary, thank you for all the hard work.
To all the networks, send me an email. I think Renee has something here. We might be able to help.

Reply by sue_pa on 8/2/07 8:54am
Msg #203384

While none of us is privy to the info given to lenders via the vendor management companies, I cannot imagine that the legal/compliance departments of multi-billion dollar lenders don't know exactly that they are getting.

Reply by LisaWI on 8/2/07 9:02am
Msg #203385

You are correct Sue, but heres the thing. They know what they are getting only because its been told to them by one source. Maybe, just maybe they are not aware of other options for the BCG as they are not being told there is any other.
Has it been brought to their attention?? Do they know all the facts??

Reply by Brad/AZ on 8/2/07 9:19am
Msg #203386

Does the NNA really want their test to be comprehensive?

This might sound a little conspiracy theory-like, but I would like to throw out the idea that maybe the NNA would rather have their background check look like the most comprehensive on the surface (via their advertising and media spin), but not be the most comprehensive in actuality. It's hard for them to make money off of a notary that fails their background check, and I've heard over and over again in this forum that the NNA's primary concern is with making money. Just a thought based on following their motivation.

I personally have not had any background check done for notary purposes, and I'm not planning on doing so until it's absolutely required by law. My record is clean. The mortgage company that I work for knows it and so do the title companies that I deal with. Should it be required by law in all states? Absolutely. But until it's necessary, I'm not buying it.

Reply by bigdog on 8/2/07 12:02pm
Msg #203435

Re: Does the NNA really want their test to be comprehensive?

Harry, As already stated, you are a smart business man. I know you'll do what is right. Not just what is right for your business, but what is moral. Personally, if I had your background with computers, I'd consider a mass e-mail to all lenders warning them to check the standards used in the BGC they have been accepting and point out the story you just shared with us. Also, point them in the right direction for a good BGC. i.e yours and others that are also comprehensive. To my way of thinking, the Lender's will appreciate the heads up and some may even act on it. I'm sure you'll come up with some answers from others far more intellectual than I. Good luck on what ever you decide. I'm sure everyone here will support your decision.

Reply by Ernest__CT on 8/27/07 4:19pm
Msg #207992

The NNA holds Background Checks hostage

A Notary Signing Agent has to be a ***current*** member of the National Notary Association's Notary Signing Agent Section in order for the Notary's Background Check to be accessible. That means that if you join the NNA (one lump of money), then the NNA's Signing Agent Section (another lump of money), then have the NNA Background Check done (a third lump of money), and later allow your NSA Section Membership to expire, BOOM! your Background Check vanishes! Even though you've paid for the Background Check and it asn't expired, the NNA holds your Background Check hostage until you rejoin the NSA Section!

Money, money, money.

Newbies will find the NNA referred to as XYZ in several places in Notary Rotary.