Posted by Dennis_IN on 5/15/11 1:44pm
Msg #383229

I got a call Wed to notarize a document and it

ended up being a BOA loan modification. (A simple 2 page document) They were told to get it notarized and overnight it back to them. I called the DOI for Indiana to ask if this type of document required a Notary with a Title Producers License. Of course, I had to leave a message and I haven't heard form them yet. Any thoughts about this from other IN or MD notaries? If it does require a TPL isn't BOA taking a risk of having the Borrower find a Notary whom is not qualified to perform this notarization? If so, does that make the notarization invalid? Would the Non-TPL Notary or BOA be libel for the imposed fine? Sorry, I didn't intent to make this so long of a post. But I think it is a question that needs to be asked. I will call DOI again on Monday to get an official reply.

Reply by FlaNotary2 on 5/15/11 5:51pm
Msg #383234

You would not have needed the TPL

If you are acting as only a notary - all you are doing is notarizing the document - you don't need the TPL. If you are printing the document for the client, going over the document with the client or explaining the purpose of the document, you are acting as a signing agent, and a TPL is required.

Reply by Ilene C. Seidel on 5/15/11 6:48pm
Msg #383237

Re: You would not have needed the TPL

In Maryland when the Commissioner initiated the TPL for Notaries to close loans his thought was if the Notary who receives compensation from issuance of title insurance (from HUD) will require a TPL. Now the new law requires anyone closing a mtg loan with a Notary Commission must have a TPL under any circumstance. Any Mtg or Title company that does not comply can be fined and potential loss of TPL to operate in Md. If it's a DOT only I doubt they are breaking any law you didn't close a mtg loan, but your state may have other reasons for Notaries to have TPL you really need to ask and I would pursue your question for future reference and do post it here in case someone else needs to know. And after thinking about this I'm going to call the state too, and will post same.

Reply by Linda_H/FL on 5/15/11 6:52pm
Msg #383238

Dennis, I'm with you - I'd speak with the DOI about it - I think BoA is going to have to advise as to their intent with this...

From what I understand, the TPL is required with any transaction where title insurance will be issued - since the mortgage is being modified, depending on the extent or type of the modification a title insurance *endorsement* may be required by BoA, which may trigger the TPL requirement.

It's very possible they have no intention of asking for an endorsement to the existing title policy, so their legal dept. decided "just a notary" would suffice...

Good Luck - let us know what happens..

Reply by C. Rivera Chicago Notary Services on 5/16/11 10:52am
Msg #383266

The question I have for you Dennis, are you aware of IN

notarial laws, rules & regs??

Reply by kcg on 5/16/11 11:12am
Msg #383269

Re: The question I have for you Dennis, are you aware of IN

Indiana notary rules are barely one page. Dennis' question did not have anything to do with notarization but rather the IN requirement for a TPL when notarizing mortgage documents. If there is issuance of title insurance then a TPL is required. I am curious as to how UPS or a bank notary without a TPL can notarize a refi when title insurance is indeed being issued. That is a question for the IN DOI.

Reply by Dennis_IN on 5/16/11 12:20pm
Msg #383285

Follow up on TPL requirements dealing with Loan Modification

I spoke with the head of the Title Division for IN and she said that while they have not considered the issue of loan modifications and rendered an official decision. She said that if title insurance is not being sold as a part of this transaction it would not be necessary to require a Licensed Title Producer to conduct the notarization. So,for this type of transaction, if a lender wants to send the borrower the document and have them "find" a Notary that would be ok with the DOI.