Posted by JK/TX on 10/10/09 12:41am
Msg #306914

$500,000. required E&O....anybody?

I received a call today from an individual that had a loan pkg for a property in Okla. He was stressing over the requirements.

1. He was not allowed to take the docs to a title company and sign before their notary. (have no idea why, it was in his requirements)
2. He had to sign his docs before a notary that has $500,000.00 E&O insurance.

Have any of you NP's in Texas run into an issue with E&O max. coverage of $500K..... ?

Reply by CopperheadVA on 10/10/09 7:21am
Msg #306919

That is TOO FUNNY! It must be a Provident loan....

and if Provident is doing mail-away packages, heaven help them because they will get back all sorts of cross-outs and strike-outs. Their famous loan-prevention department had better get ready for a deluge of rejects.

Provident is probably the MOST strict lender with their docs. No cross-outs, strike-outs, and if the borrower doesn't write his/her dates exactly the same throughout the entire package, the whole package will be rejected by Provident for any of these appearing in the package even ONE time.

And how do you think mail-aways will do with dealing with an incorrect name on the Name Aff???

Reply by A S Johnson on 10/10/09 9:21am
Msg #306923

Re: That is TOO FUNNY! It must be a Provident loan....

Provident is the only one I've seen that has this requirement. Because of this and other instructions and requirements after doing 2, I won't do them. They a PIA and doing them for a SS who may not pay you is not worth it.
As for as E & O insurance, $500,000 is costly and again, with SS they would not add extra for that expense. My understand is cost to redraw the docs, several days of interest, monies (commissions) the LO, apprasial and survey cost would be most of the items that we could be held responsible for if (and that's a BIG if) we were responsible. Remember all we do is watch the Br sign and Notarize the docs. Lender and Escrow are the ones responsible for the correctness of, content of and proper docs.
Isn't it interesting that thier local office won't do them? Or is their a "stink somewhere else in this wood pile".

Reply by PAW on 10/10/09 10:22am
Msg #306931

Re: That is TOO FUNNY! It must be a Provident loan....

>>> As for as E & O insurance, $500,000 is costly and again, with SS they would not add extra for that expense. My understand is cost to redraw the docs, several days of interest, monies (commissions) the LO, apprasial and survey cost would be most of the items that we could be held responsible for if (and that's a BIG if) we were responsible. <<<

Considering that 99% of the above costs wouldn't even be covered by Notary E&O Insurance anyway. Thus the SIGNING AGENT would end up being personally liable for that.

Reply by A S Johnson on 10/10/09 11:11am
Msg #306937

Re: That is TOO FUNNY! It must be a Provident loan....

PAW, Thanks.

Reply by Barbara Taylor on 10/10/09 11:19am
Msg #306938

Re: That is TOO FUNNY! It must be a Provident loan....

It is the signing and the title companies responsibility to have that much coverage before contacting us. They already know what amount coverage we have up to the max. There clients should make sure they have that. So, I think the signing companies is trying to pass this on to the notary.

CRAZY. The last one I did the signing company put me under her umbrella for the E&O.

Reply by PAW on 10/10/09 11:48am
Msg #306939

Re: That is TOO FUNNY! It must be a Provident loan....

I submit that most signing services do not have an E&O policy that would include their subcontractors. Many title companies don't even have policies that cover their subcontractors. So the signing agent personally will end being responsible, since Notary E&O Insurance is very limited in scope, to claims resulting from a notarial error.

Reply by MW/VA on 10/10/09 9:53am
Msg #306925

Re: That is TOO FUNNY! It must be a Provident loan....

I cannot believe that Provident has gone to mail-away packages, after stressing their ridiculous requirements for $500K E & O. It will make the borrowers absolutely crazy!

Reply by CopperheadVA on 10/10/09 10:36am
Msg #306934

Re: That is TOO FUNNY! It must be a Provident loan....

To be fair to the original poster, I made the assumption that it was a Provident loan. They are the only lender I'm aware of that requires the notary to have $500K E&O.

Reply by John Schenk on 10/10/09 3:21pm
Msg #306944

LOL I sure don't have it. n/m

Reply by NCLisa on 10/10/09 4:23pm
Msg #306948

They aren't asking for Notary E&O!

They are asking for Professional Liability Insurance, the kind that TC's and attorneys and settlement companies have. Notary E&O Insurance only covers the errors on the ack. What they want would cover you if a document was dated improperly and the loan didn't fund or their investor won't buy it because you missed having a doc signed, etc. Professional Liabilty insurance for what we do runs around $1500 to $2500 per year.

Reply by A S Johnson on 10/10/09 7:48pm
Msg #306956

Re: They aren't asking for Notary E&O!

Could we even get "proffession libility" insurance as we have no "recognized" training and licenseing for what we do as Signing Agents.

Reply by Barbara Taylor on 10/11/09 7:42am
Msg #306965

Re: They aren't asking for Notary E&O!

If they pay us like professionals then maybe we can afford it. Still funny, I don't think they will get this one closed LOL, LOL, LOL

Reply by Dave_CA on 10/11/09 10:30am
Msg #306991

Re: They aren't asking for Notary E&O!

I had this same situation about a year ago. Borrowers were traveling and had been mailed the package. Yes it was Provident. They had tried several Notaries before the called me and were quite distraught. I explained that I did not have that much E&O and doubted that any individual NSA did. I felt sorry for them and so told them I would see what I could do.
I called a Signing Service that I'm happy to work with and arranged to have them take the signing and then assign it to me. They faxed me a copy of their insurance dec. page & I had the borrowers pay the signing Service.
I set the fee to cover both of us and the borrowers ended up very happy with me although less so with Provident.

Reply by jba/fl on 10/12/09 12:10am
Msg #307012

Dave: Congrats for thinking outside the box and devising a

terrific solution to the problem. You have that WOW factor here!

Reply by MW/VA on 10/11/09 5:54pm
Msg #307009

Re: They aren't asking for Notary E&O!

There's been many previous posts on this subject. Provident requires $500K E & O Insurance.