Reply by Mobile Notaries Group - MNG on 10/1/09 6:08am
Msg #305769
The state of MD is checking on those signing companies who are not licensed to solicite notaries here in the state of MD. So if they ask you for a background check and they are not listed in your state insurance producer nonresident listing then they are in violation. So they would have to stop soliciting you all together, so run a background check on them.
Here is what we found out from doing our research. Here is the testimony of what was presented to the State Senator and the MIA.
TESTIMONY OF BARBARA J TAYLOR, LEGAL ASSISTANT / TIPIC
TITLE INSURANCE PRODUCER INDEPENDENT CONTRACTORS
VS. SURETY BOND INCREASE / RESPA and HUD-1
The boilerplate in regards to this matter is the use of licensed notary public’s as scapegoats to hide the unethical practices of the mortgage lenders and title companies errors, misappropriation of escrow funds and controlling the disbursements when due. I am basically stressing the fact that the HUD-1 and RESPA is both out dated and needs to be revised, and with this in mind, it should clear up some matters when it comes to the consumer and the notary (licensed Witness Closer/Title Insurance Producer Independent Contractors) TIPIC.
The HUD form abrogation is to appear as though everything is in compliance but in reality line item 1106 has not changed and the notary is still being ignored. This area has been overlooked since the Notary (Regular Notary Public) title has been changed to a Licensed Notary (Signing Agent)/Title Producer Independent Contractor. RESPA enforces an out of date method of the HUD and can not justify why and when to utilize and/or explain the services of the licensed TIPIC and do not include it with other services of the title companies.
Since, 2003 the licensed notary is classified not only in Maryland but are changing nationally. The key word is licensed, licensed like a surveyor, abstractor, title company, recorder, lending institution, etc., since there is now a licensed notary, a notary all together different than the regular notary, a regular notary do not handle real estate closings or documents and are not educated. A licensed notary/title producer must go through 30 hours pre-license course and 16 hour continued education to maintain their license bond and etc., the notaries are now considered to be professionals. A licensed notary, however do not handle Escrow.
The RESPA needs to catch up to the new century. Until this matter is revised then RESPA when it comes to the notary is supporting the biggest fraud in the industry of title, it is a common scheme and a reason some title companies who do not pay hide behind the out dated RESPA Act. We notaries pay for our license and more. This matter is a fraud, a fraud which continues to allow escrow, mortgage and title companies to continue to hide this. In the real world the companies who contract licensed notaries/witness closers who contact the consumer to verify appointment date, location and time, print out the documents, which utilizes their electricity, toner, paper and time, drive to the appointment, utilizes gas, oil and mileage and meeting at the table with the consumer can take from thirty five minutes to an hour, fax over documents requested of the title company and then drive to either FEDEX, UPS or etc., to drop off the documents. This process can takes up to three hours of the licensed notaries time. I believe time spent on each closing handled by a licensed notary, equals to a loan officer, closer and attorney. Again, until this matter is cleared this is considered to be one of the biggest labor violations ever.
This matter must be addressed. It is a matter as stating until the notary is paid on time the case file for loan closing documents handled for a closing is not officially closed it leaves room for a right to action where a notary may be able to file a claim based on these facts and others may and can cause a great upset in the title industry. With basically some notaries know that some loan documents are not complete until records are filed with tax and land records and that could take at least a month or two.
Line item 1106 Notary – (for Sell) have been changed to Line item 1106 Owner’ title policy limits – it is considered to be a contract of adhesion, it should be amended to include a notary who acts and handle documents in closing loans must hold commission, errors and omission insurance, license and a surety bond and is able to set out on its own on the HUD and should be compensated at disbursement of funds, no matter if it is a sales, purchase, refinance, equity, HELOC, etc., and since this area of the HUD/RESPA has not yet been amended for revision to be enforced it is a great cause for concern and a matter which fraud in the title industry can continue to withhold funds from basically clearing the consumer’s loan. However, its been revised to state Line item 1106 Notary and Owner’s title policy limit again hiding the services performed by the notary and can still leave it to appear that the notary have and/or have not been paid for their services. Even though, it’s been changed to now read that Line item1106 is used to record the amount of the owner’s title policy limit. This amount is recorded outside of the columns. The services of a notary is not disclosed and are caught up in the title charges of the mortgage lender, title companies and the contracted signing companies which are owned by some title companies to control payment to license notaries who are independent contractors for their services. (See below the revised section of the HUD from the [Federal Register/Vol. 73, No. 222/Monday, November 17, 2008/Rules and Regulations].
Third-Party Service Firms:
Direct Title Insurance Carriers (524127); Title Abstract and Settlement Offices (541191); Offices of Lawyers (541110); Other Activities Related to Real Estate (531390); Offices of Real Estate Appraisers (531320); Surveying and Mapping (except geophysical) Services (541370); Credit Bureaus (561450); Exterminating and Pest Control Services (561710); Offices of Real Estate Agents and Brokers (531210).
Third-Party Service Firms are labeled with an assigned number and are professional licensed firms and so are TIPICS, so why then are the TIPICS not listed in this process. RESPA/HUD #1106 holds one of the biggest loopholes ever and in itself is a liability, where the legal ethics in this matter is violated. In the section of the Third-Party Service Firms where do we license notaries fit in. Where do the TIPICS (license notaries) fit in, in the Final Rule, since the title companies are now controlling this line, basically placing all title producers under the line items 1100-1108 (see Exhibit – 1 and Exhibit – 1a) under their umbrella giving control over both:
1. TIPICs are educated have a surety bond, trade name, federal identification number, are sole proprietors, S-Corporations, C-Corporations, LLC, LLP and are alieni juris (basically under legal control of another) in the line items 1100-1108, placed under the same umbrella. Why do the TIPICS even need a bond? (See attached Exhibits). Exhibit – 2 Trade Name; Exhibit – 3 IRS – FEIN and Exhibit – 3a W-9; Exhibit – 4 HB 1460.
2. Title Producers who are educated do not have a surety bond are hired as in-house title producers under title company surety bond, under their umbrella. (see Exhibit – 5)*
*[This leaves margin for unethical practices where unlicensed Title Producers are bonded under the title company surety bond, perform closings for signing companies out-of-state and the signing companies then are placed as the notary on line 1106 who unofficially closed the loan (See Exhibit – 5)]. But, in this particular case in Exhibit – 5, the signing company on this exhibit utilized the service of a Maryland TIPIC not knowing that TIPIC is an independent contractor, the TIPIC officially closed the loan. This raised a red flag with the TIPIC.
Why in the RESPA was the line item1106 Notary singled out and merged into the title company control? Again the RESPA/HUD has not been revised to accept the change that’s been made for Notary Witness Closers who hold license. RESPA have not justified why this change have not been made. RESPA do not justify or explain why we notaries must have a bond greater than the income we received; do not justify why we don’t sell title or get paid for selling title; do not justify why we are to be gagged at the closing table because of the fears of the lender [Federal Register /Vol. 73, No. 222/Monday, November 17, 2008/Rules and Regulations 68229]; do not justify why we aren’t paid at disbursement (after the 3-day Recession); can not justify why we cannot hold escrow, yet MAHT want a percentage of the escrow funds, because they are confused as to who we are and what our title represents; you cannot tell why nor justify the difference of knowing that notaries are witness closers licensed notary public; you cannot justify why we were labeled TIPICS – Title Producers. Therefore you cannot explain why the Affiliated Business Arrangement Disclosure Statement discloses the fees for Title Insurance and Closing Services, where the fee ranges from $150-$10,000 (varies by state, property, value and loan amount). Higher amounts may apply for high cost properties, large loan amounts of optional coverage. Why the notary isn’t paid their worth, starting with the $150.00 instead of the $100.00 or less, we are license businesses, since when does these title companies are allowed to dictate our fee.
So, explain why, are licensed notaries being used as the scapegoats in this matter – when the case is between In and Out of state lenders, title companies and the consumer. So why are we notaries being caught up in an increase in the surety bond, an increase that have no justification or an explanation in this process – or should notaries hold bonding of this magnitude. How can the state of Maryland Insurance Administration benefit from this increase an increase where the funds again go to whomever, it appears to be a fast scam a way for the investors to gain control over the state system. This is one of the biggest scams ever not only against the consumer but state and the licensed notary. An act put into place during the Ehrlich Administration in the very beginning when we licensed notaries were born and did not know or had a say as what to call or label us notaries and why these tactics were adopted by the O’Malley Administration to use the notaries as to blame and a scam put in place by lawyers who own title companies who go out of state to create signing companies hiding behind the RESPA to contract notaries whether they are licensed or not to close loans and to then not pay or create a 30, 60, 90 day policy to which is unethical where their actions are double and triple dipping and/or covering up as to working both or three sides of the fence this action may be cause for legal action. (See attached Exhibits). Exhibit – 6 MIA Title Producer dbase; Exhibit – 7; HUD; Exhibit – 8 Background Clearance and other miscellaneous supporting documents Exhibit – 9.
I believe if the research is performed to connect the dots to some political appointees (law firms, title companies) who are listed on the MIA Producer firm, residential/nonresidential database, to research further you will find that some politicians are caught up into this title industry which keeps the fraud active. See Exhibit – 6 MIA Title Producer Firm dbase. Not only are the licensed notaries in the state of Maryland feeling this unjustified act but other notaries who are performing the same service in other states too. I feel that this matter should be heard not just on state level but on the Federal level as well. In stating that Senate Bill 86, Chapter 361 has no barring and does not apply to TIPICS who are Notary Witness Closers who do not handle “TRUST FUND” as stated in Chapter 361-SB-86 Section 10-121 (see attachments) and in stating a Notary Witness Closer is mislabeled as Title Insurer and do not handle any funds.
It doesn’t matter if I am black balled in this industry or if I ever get to close another loan as a licensed mobile notary, for in a couple of years I may not be able to see, walk or drive, but I am standing and will continue to lobby/fight for what is right in this process. I will continue to contest this matter, even if it is just one voice. Deeply, I feel this matter holds ground for a class action process in the support of the license notaries public who are considered to be independent contractors who do not handle trust fund and where these matters can indemnify and deeply affect their livelihood. In conclusion the above subject matter the HUD/RESPA should be revised in support of the Notary Witness Closer (disbursement) and the bond should stay the same $100,000 for the TIPICS only, to not be increased or be dropped.
Barbara J. Taylor
2006 National Notary of the Year
Special Honoree with Highest Honors
MOBILE NOTARIES GROUP, INC.
September 17, 2009
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