Posted by BossLadyMD on 7/20/10 9:30am
Msg #345694

Dear Signing Companies RE: Maryland Properties

Signing Companies and Others who hire LTPs for Maryland Properties - PLEASE READ:

Going back several months, there have been a ton of posts on here about the impending changes to signings for Maryland properties (Thanks to Ilene for taking the lead on this!!!). A letter of appointment from the title insurer must be on file in order for a TIPIC to handle the signing. I am shocked and dismayed at the high number of companies who are still scrambling and trying to play catch up, calling me in a panic. The law went into effect July 1. Please check the Maryland Insurance Administration website (google it) and put the systems in place NOW. I know this is so cliche but 'lack of proper planning on your part does not constitute an emergency on my part'. Please follow the law, in its entirety. Thanks.

Reply by Ilene C. Seidel on 7/20/10 9:44am
Msg #345697

Thanks for posting this, it's so important, I don't think the most of SS and Title companies are taking this new law seriously. What are they going to do when they have to submit their report year end?

Reply by BossLadyMD on 7/20/10 10:00am
Msg #345700

Unfortunately, I don't think they've thought that far ahead. But I'm not going to be the test case, that's for sure.

Reply by Les_CO on 7/20/10 11:48am
Msg #345711

Maybe I don’t understand the law…But what would Signing Services or Signing Companies have to do with this? Except perhaps to pass on the information to the Title Companies that hire LTP MD notaries, Or keep a record of who is covered under a particular (that they work with) Title Company’s bond? It was my impression that LTP’s in MD had to be bonded, or be covered under the hiring Title Companies bond/insurance? I think if it were me (as a MD notary/LTP) I would contact every Title Company licensed to do business in MD, and send them my LTP info, and asked to be listed on their bond. Considering this new law from a SS point of view, if I did not know a particular notary was covered under the hiring companies bond, I would not call them for an assignment. So as a MD LTP notary IF covered under any particular Title Companies bond, I’d sure let every SS know. JMO

Reply by BossLadyMD on 7/20/10 12:59pm
Msg #345718

"and others who hire LTPs"

Local companies are fine. It's the out-of-state establishments that are struggling. The hiring entity, in some cases the signing service, don't understand that we must be appointed. It's rather frustrating.

Reply by Les_CO on 7/20/10 3:00pm
Msg #345738

Re: "and others who hire LTPs"

Then maybe you should tell them? I would think it the responsibility of the MD Notaries/LTP’s to do what must be done to legally work in their State. In other words to notify all the Title Companies that they work for, or that they may want to work for, and to send them the required information/forms/whatever, along with a request to be included/covered/whatever, in/by the Title Companies bond, making it possible for all parties to comply with the law. Why this responsibility would fall upon the SS or “others that hire LTP’s” is what I don’t understand.

Reply by BossLadyMD on 7/20/10 3:39pm
Msg #345746

gee! why didnt i think of that; they can't read my mind!

If you are licensed and want to stay licensed to sell title insurance in Maryland, it is YOUR responsibility to do it legally. Did you not see in my original post that we have been reminding them for MONTHS about the upcoming changes to the law? I think some SS just dont care. They will hire a notary in an LTP state without any appointment letter and could care less that the deed wont be recorded, so long as they get their fee.

It is absolutely the SS or others that hire LTPs to educate themselves on the law and be sure that their in compliance by contracting with LTPs that they have placed on their bond or appointed. I thoroughly understand my legal responsibilities and I'm getting tired of repeating myself over and over again to folks who have no intention of abiding by the law. I can't wait for the first lawsuit.

Reply by Les_CO on 7/20/10 4:10pm
Msg #345752

Re: gee! why didnt i think of that; they can't read my mind!

Okay you’re losing me here…. First of all I don’t know MD notary law, second I don’t much care and third, in you post you seem to blame SS, not the Notary LTP’s for not complying with the law. That I don’t understand.
You say: “A letter of appointment from the title ( Company’s?) insurer must be on file in order for a TIPIC to handle the signing.”
I don’t know what a TIPIC is? I assume a MD notary with a Title Producers License?
Can a Title Company or SS simply ‘appoint’ a MD notary without their knowledge? Can a Title Company just go to their ‘insurer’ and ‘blanket’ appoint all LTP notaries in the State? Does not the individual Notary have to be involved somewhere in this process?
Are you saying that if anyone that wants to hire you they better look up you, and your relevant information call their insurance/bonding company, and have you included/covered on their policy, and have a ‘letter of appointment’ on file somewhere before they do so? And getting this done is their sole responsibility?
Or if your notary commission expired on the first of July, and for some reason you did not renew, and some SS called you on July 2 to do a signing, it is their responsibility to know that your commission expired, and that you haven’t renewed, and that you are no longer legal to work as a notary, and if you do it's their fault?
It’s not YOUR responsibility to comply with the law, and do what’s necessary to work in your State? Like know what Title Companies have your info and “letter of appointment’ on file? And whom you can legally work? This is the responsability of the SS?
I guess I just don't get MD law?

Reply by MikeC/NY on 7/20/10 4:49pm
Msg #345763

Re: gee! why didnt i think of that; they can't read my mind!

I think they point here is that the TCs are SUPPOSED to know this, since they are licensed to do business in the state and have been informed of the change in rules; it's not on the notary to inform them. Obviously, the SS could care less - they just need a warm body with a notary stamp.

Maybe the solution is for the notary to ask who the TC is, and if they don't already have a copy of the letter of appointment from that TC, insist that a copy be included with the docs or the signing is not going to happen. The notary doesn't have to go into a detailed explanation of what that is - the TC should already know. If the SS cannot or will not do this, they will simply move along until they find a notary who doesn't know or care about the rules. Ultimately, it will fall back on the TC, because it sounds like the docs can't be recorded unless the TC is in compliance.

I think the regulations are very bizarre, and it's going to cause some NSAs in MD to lose some business until the out-of-state TCs get their acts together (and they will have to do that if they want to continue doing business in the state). I can certainly understand the frustration this is causing... what a mess.

Reply by BossLadyMD on 7/20/10 6:27pm
Msg #345780

thanks mike - hopefully everyone will get on board soon! n/m

Reply by JanetK_CA on 7/20/10 5:02pm
Msg #345764

Probably better handled "as-needed" by tc's, imo.

I'd have to agree with BossLadyMD on this one. Until a company needs a particular notary, they probably don't care to mess with dealing with their paperwork, etc. Seems like a waste of time for both the Title Producer and the hiring entity.

I was supposed to have one this week for a Maryland property (to be rescheduled). Seems this requirement applies even to out-of-state signings. The title co contact said she needed to have my E&O info, etc. to because they needed to put me on their insurance for this signing. I imagine the companies who know what they are doing are handling this on an "as-needed" basis. However, it would be smart for someone in MD to mention it if their client doesn't bring it up.

BTW, she mentioned that MD is only one of about 11 states that require a TPL for their remote closers. Am I missing something or what she just thinking of something else at that moment? (It was waaay after hours her time...)

Reply by Les_CO on 7/20/10 5:42pm
Msg #345769

Re: Probably better handled "as-needed" by tc's, imo.

I’m probably wrong (again) but as I read the original post.

She says:To paraphrase:
It’s the SS fault if they hire a Notary in MD that does not comply with the law, and she can’t wait until someone gets sued because of this.

I say it’s the Notary LTP’s obligation to know, and abide by the law where they practice, and to inform all that want to hire them if they are in compliance or not.

I guess it will be interesting (to some) if a case comes to court to see…For instance: A SS calls a Notary in MD to do a signing for say… Ajax Title Co., and the notary, KNOWING that they have no “letter of appointment” and are not covered in any way by Ajax’s insurer, takes the job, and then someone then suffers a loss because of this non-compliance with the ‘new’ law ….
Who will be responsible the SS (not licensed in any way in MD) or the Notary?

Reply by BossLadyMD on 7/20/10 6:29pm
Msg #345781

i think you're correct, janet. probably take a few months.

hopefully, no business licenses will be revoked in the interim. time will tell.

Reply by BossLadyMD on 7/20/10 6:25pm
Msg #345779

Les CO - sorry but I dont have the time or energy to explain

it to you. google maryland insurance administration if you ever start to care, thanks for the dialogue, no harm no foul

Reply by Les_CO on 7/20/10 7:07pm
Msg #345784

Re: Les CO - sorry but I dont have the time or energy to explain

To start...Nothing personal intended... There are so many posts blaming SS's about all the ill's in this business. I agree that many SS out there should not be, many are inept, some very smart but dishonest, some Title Companies too. None of us should work for them. But we should all be clear and honest in thinking/criticism.

I did look an the MD site. Quickly. Saw lots of stuff, but could find nothing relevant. If you think that SS or Title Company employees are going to spend hours searching through a myriad of confusing /not relevant information to find what YOU think they should /find/know…? Well ….sorry…I think the infuses to be on the notary that wants to be hired, not the hiring company.
That said I do know a SS here in Denver that has notified all the LTP’s on their list to let them know from whom they have received an “appointment letter”.
I also know the owner of a (small) Title Company that does ‘some’ business interstate, that lays off all his out-of-state business to a SS. He feels like you…”let them worry about it…I don’t have time.”

Reply by MikeC/NY on 7/20/10 8:17pm
Msg #345795

Re: Les CO - sorry but I dont have the time or energy to explain

You're missing the point, Les - all TCs licensed to do business in MD have already been informed of the new regulations. A TC cannot just decide to start doing business in another state - they usually have to be licensed by that state, and must comply with that state's laws (I know that to be true in NY, MD, and a number of other states). It's on THEM - not the notary - to make sure they are in compliance.

If they don't comply with the law, they will very likely lose their license to do business in that state. If nothing else, they will find themselves in a sh*tload of trouble when their non-compliant documents are rejected for recording...

Reply by Les_CO on 7/20/10 9:40pm
Msg #345798

Re: Les CO - sorry but I dont have the time or energy to explain

Okay……Now I get it.
The point of her post was that all Signing Companies and others that hire licensed title producers to help with signings for properties located in MD should make sure that the hiring Title Companies comply with all MD laws.
Good idea!

Reply by MikeC/NY on 7/20/10 11:15pm
Msg #345800

Bingo... :) n/m

Reply by Susan Fischer on 7/21/10 4:04am
Msg #345812

Five Stars. * * * * * n/m