Posted by Les_CO on 4/29/08 11:08pm
Msg #245642

Maryland Notaries

I have heard that Maryland Notary Signing Agents in addition to a Title Producer’s license, must now also have $100K E&O insurance, and a $50K bond? If so are the major companies FASS, LFC, etc. still offering $50 for edoc signings?

Reply by WDMD on 4/30/08 5:40am
Msg #245653

"I have heard that Maryland Notary Signing Agents in addition to a Title Producer’s license, must now also have $100K E&O insurance, and a $50K bond? If so are the major companies FASS, LFC, etc. still offering $50 for edoc signings?"

There is no E&O or bonding requirements to be a notary in Maryland. To hold a TPL there is a $100,000 surety bond requirement, and you must pass a test. If you have employees or sub contractors working for you there is a $100,000 fidelity bond requirement also. There is no E&O requirement for a TPL license either. To renew the license there is also a 16 hour continuing education requirement.

I do not work for FASS as they offer $50 O/N or $75 e-docs. LandAm is worse, they offer $40 O/N, $60 e-docs. I have been told by their schedulers they do not need TPL's only notaries for their signings. LFC does meet my fee occasionally.

Reply by Les_CO on 4/30/08 9:17am
Msg #245665

First thanks for the information…. But ….I’m confused? I know “we” as ‘Notary Signing Agents,’ or whatever “we” call ourselves, do much more in ‘closing/presenting’ loan/purchase/sale documents to the public, than simply notarizing signatures. I was under the impression that in Maryland, to ‘legally’ do this job, (not just be a notary) one had to have a TPL license? And you are saying to have this TPL license one must pass a test, take continuing education, and have $100K both surety bond (many States require a surety bond for notaries, but usually not in that amount) and fidelity bond? But that there are some notaries (in Maryland) that do not have a TPL, are presenting loan docs? This came up because of the different fees that Title Companies are willing to pay in different States. In Colorado, one must be 18, a resident, able to read English, and not a felon, and it seems we are paid accordingly.

Reply by WDMD on 4/30/08 9:53am
Msg #245669

"But that there are some notaries (in Maryland) that do not have a TPL, are presenting loan docs?"

Yes, quite a few apparently.

Reply by Les_CO on 4/30/08 10:10am
Msg #245670

So is this legal? I know some States have weird laws, like in Texas, if a borrower gets any money back, they must be closed in a Title Co., or Lawyers office (or maybe the bank if it's the lender?) sort of confusing.

Reply by Lee/AR on 4/30/08 10:14am
Msg #245672

From what I gather, MD passed this law, but doesn't/won't enforce it. Soooo, the MD notaries that spent the money, took the test, got legal, have lost out to the 'illegals'...both the notaries who do it AND, more importantly, the companies who knowingly, eagerly hire them. This just soooo sucks.

Reply by WDMD on 4/30/08 10:32am
Msg #245680

My feelings are that most TC's and SS's do follow the law and hire TPL's. The problem the way I see it is the lowball companies. They hire anyone who will go for their price regardless of whether they are licensed or not. I think the big, out of state TC's work under the assumption that either they won't get caught, or if they do they will pay a relatively small fine in comparison to the millions of dollars in fees they have saved. Either way they come out ahead.

As far as the unlicensed notary goes, all they probably have to lose in the end if they get caught is their commission.

I think if the state made an example out of one of the big TC's the majority of the flaunting of the law would end. You really can't blame the un licensed notaries, as they are being told by a multi million dollar company that the loans they are closing do not require a TPL, and what they are doing is legal.