Posted by A S Johnson on 6/30/13 12:30pm
Msg #475194

Why question on background checks

I had three calls recently needing to do notary for re-fi packets.
The customer were printing their own docs and said they did NOT need a lazer printer. Ink jet was OK.
Did Not care when the docs were signed or as required in Texas, date senstive.
Felt they did NOT require a Notary who was background checked.
Felt they did NOT need a Notary who had E & O insurance.
There responce to my fee were that they would take it to their bamk tommorrow to be signed because they would dp it for free.
I know the Federal requirements for background checks but question these Mortgage/Escrow companies, how do they get around there requirements?
Oh! by the way, these are all Mortage companies we all know and have a lot of work from. Only one seemed to be a small, local to thier area, and not known to me.
Just think about being asked by the companies we work for, for specific background check, certain amoumt of E & O insurance, copy of our driver's license, copy of our auto insurance, and a signed independent contractors contract which has a non-complete clause in it.
Just vsnting, but.....

Reply by MW/VA on 6/30/13 12:44pm
Msg #475195

It sounds like these were docs provided to borrower, find a notary, etc. Like mail-away pkgs. the co. hasn't included a fee for our services, and the borrower pays it out of pocket. Since most don't know of us & what we do, they find a notary anywhere. I've heard of them going into a UPS store & paying the $5/per notarization for VA. IMO the lender is taking a risk with these, but we're not involved & have no liability. Most cos. are still requiring bgc's & E&O insurance and I don't think that will go away any time soon.

Reply by BrendaTx on 6/30/13 1:12pm
Msg #475196

Signing agents are not necessary.

Only a notary is necessary. It's nice to have a signing agent to handle doc packages with clients, but it has never been necessary.

Start marketing to those people...it's not going away. I can sit here and do $6 per click all day long and make money. Especially on those Texas packages.

Don't say anything, discuss, etc. Just notarize.

Reply by Philip Johnson on 6/30/13 1:43pm
Msg #475198

Yes Ma'am you are right on.

Did one the other day 17 notarizations @ $10.00 each, gave them a package discount, and 25 minutes later I am on my way.

Reply by MistarellaFL on 6/30/13 4:10pm
Msg #475205

Re: Taking it to their bank for FREE

Not in my neck of the woods, unless they are the bank that is providing the mtg.

Around here, if it ain't (their) bank business, they ain't notarizin' nuthin'.

Every bank in this town has my biz card, and refers them to me.
And I do give a COD PKG discount. Add more for the responsibility of PKG drop-off.
(Thank you!)

Reply by A S Johnson on 6/30/13 7:59pm
Msg #475217

Re: Taking it to their bank for FREE

The point of my question, is were are required to have backgroung checks to be able to handle these docs as they contain sensitive information. I understand that requirement as a federal government rule so how do these lenders/escrow companies skirt these rules buy sending them direct tp the client?
The question is interesting and more retorical. No answer will be given or is needed as I think we understand that it is a way xyc was trying to get more money out of us using rules that are suspect.

Reply by MistarellaFL on 6/30/13 9:44pm
Msg #475221

I concur with that rhetorical assessment. n/m

Reply by Lee/AR on 6/30/13 9:53pm
Msg #475222

Horsefeathers. Not 'required' by feds...just by 'whoever'

thinks it's a great idea or can make some money by requiring it or by convincing a company to 'require' it or a bunch of notaries to do it.

Reply by JanetK_CA on 7/1/13 3:52am
Msg #475236

Re: Horsefeathers. Not 'required' by feds...just by 'whoever'

Agreed. Plus it's their data, so I don't see any problem in having the docs sent directly to a borrower. If they take it to Any Notary, that person doesn't ever need to have custody of the docs - or even see the pages that have the most confidential information.

Reply by Marian_in_CA on 7/1/13 12:15am
Msg #475233

It's not a federal requirement...

Actually, Federal law does *not* require background checks. Federal law, specifically the GLBA, requires the financial institutions create a written plan to protect the personal information of their customers. It's called the "Safeguard Rule" - it requires financial institutions to protect this information.

Part of this written plan *may* include requiring company employees and contractors to have passed any level of background check. Checking references and doing background checks is one thing that can be added to these plans... but it not specifically required under the law.

The requirement for backgrounds checks, and the levels they check are completely up to each individual institution and the policies they set forth.

So if a company tells you it's a Federal requirement, they aren't exactly telling you the truth. It may be a company/institution requirement as part of their written security plan, but it is no a direct Federal mandate that notaries complete a background check. It's just that most institutions *do* background checks because it's a first line of defense in weeding out people with criminal backgrounds. It just makes sense.

On the flipside of that...it doesn't mean you aren't required to have one done. If a company's written security plan mandates background screenings, then if you want to work for them, you'll need to submit to one.

See: http://business.ftc.gov/documents/bus54-financial-institutions-and-customer-information-complying-safeguards-rule

Reply by jba/fl on 7/1/13 8:22am
Msg #475242

Thanks for the link. n/m