Posted by grapebed on 11/6/13 7:19pm
Msg #491662

Critical conflict of interestl. Where are the regulatiors?

I have never understood why Mortgage Brokers, etc. are permitted to notarize their own deals and transactons where they ( or their employer) have a direct financial interest. Am I missing something?

Has this been lost on the regulators? f you notarize your own deals essentially you sre the "bat", the "ball" and the "umpire". There is no policeman.

What am I missing?

Thanks in advance for your responses.

Reply by MikeC/TX on 11/6/13 7:39pm
Msg #491670

Generally, employees of a company are not considered to be an "interested party" so there's no conflict of interest. Some companies will pay for an employee to get a notary commission because they need someone on staff who can notarize documents. In most cases, it's just an employee collecting a paycheck.

However, if the notary also happens to be an owner of the company there may be a conflict.

Reply by grapebed on 11/6/13 7:48pm
Msg #491673

if I am a mortgage banker I have a clear financial interest

If I am a mortgage babker, notarizing a loan transaction, I have a clear financial in a successful signing....no mateer how many rules and guidelines I break. The broker gets sloppy, signs and initails pages that should be signed by the borrowers and they don t
Take the loan closing process seriously.i have seen it anc some of my broker friends have shared their casualness
Seriously.

Meanwhile, they are all over the notaries for a perfect closing.

Reply by MikeC/TX on 11/6/13 8:00pm
Msg #491677

Re: if I am a mortgage banker I have a clear financial interest

If you are a mortgage banker or broker notarizing you own loans, you definitely have a financial interest. However, in most cases it's an administrative assistant who will do the notarization. That person has no financial interest in the outcome.

I understand your point, but I don't think it's really an issue.

Reply by MW/VA on 11/6/13 8:32pm
Msg #491680

This has been brought up before. It may not be ethical, but

there's no law preventing it.