Posted by Bear900/CA on 11/3/13 1:42am
Msg #491072

Glad to see some Proactive thinking here

Unfortunately, you can’t prepare for war when the battle has begun. You may try to change some strategies and thinking however. Positive, not negative, reaction is a starting point.

There was an attempt to rally the troops way back with some explanations why. Some NSA’s are finally catching on but many others (most) are still not getting it. Sorry folks, whining will not do. Intelligent feedback works best.

Regarding the CFPB’s mandate on 3rd party compliance, someone HAD to take charge. By default it was the banks, title companies, a special work group and the NNA.

These powerful forces are too big to contend with or ignore. The move has been made on NSA’s.

I understand their compliance reactions to CFPB mandates. I don't agree with some of their methods but I do agree with most of thir goals since no other alternatives have not been presented.

The law is not new. We have known about it since 2010. It doesn’t start Jan 2014. That day was picked by banks due to QM, QRM and ATR starting Jan 10, 2013. These just focused the flashlight on us.

I would be happy to confer with any who wish to pursue alternate actions.

Best!

These were my prior attempts:

“Looking for a few good Eggs!” Msg #455114 2/11/13

“I’m looking for interested, talented or not, hopefully knowledgeable or willing to learn and contribute, highly cooperative NSA’s AND SS’s who would like to collaborate on the following:

• putting together a ‘Best Practices Policy’ on NPI (Non-Public Information)
• Addressing other future compliance issues”

“Let’s talk compliance in context” Msg #476399 7/11/13

“It is my expectation, very clearly and very definitively, that notaries will fall under the obligation of third party vendors for loan originators. Not that we are in the origination business but we are a 3rd party provider and sometimes hired directly. The government has put into place a mechanism that can’t be stopped arbitrarily because “we just don’t like it”. At this given moment, per law, I am required to make sure that any 3rd party vendor (includes title, escrow) have in place their own Red Flags Policy and internal policies to deter fraud. They beg to differ, and so will notaries when the time comes. That’s a good thing!”

“What you should know about the FACT Act” Msg #484487 9/13/13

“When a broker seeks approval from a lender to originate for them the lender will require among other things a copy of their internal policies and their Red Flags program, or FACT Act. This must be updated annually.

Part of the program is to verify that 3rd party vendors have their own similar programs in place. In essence, we are to ask title and escrow to show us their same programs, especially Red Flag programs, for us to be compliant dealing with them. So far we have been trying to get our own shops in order with heavier compliance from the CFPB.”

“Why I believe the independent NSA Business will Collapse” Msg #484466 9/13/13

“Brokers and banks that are still around have run this gamut and part of their compliance is to make sure that 3rd party vendors (title, escrow and notaries) are in line with them. THIS HAS NOT STARTED. When this becomes edict and not suggestion, the bigger title companies with clout will unleash their new compliance upon their own vendors.”

“They will not play footsie with independent NSA’s that don’t have the ability to develop, maintain and purchase expensive and comprehensive compliance programs. They will turn to large signing agencies that have the capital, the marketing, the pricing, the employees, the coverage, the responsibility and the compliance know-how, if they need to go outside at all.”

So where do we go from here?

Reply by 101livescan on 11/3/13 1:47am
Msg #491073

I wondered when you were going to show up!

Whadda we do now, Ollie?

Reply by Lee/AR on 11/3/13 2:27am
Msg #491074

Bend over or find a way to have some input. We are not the elephant in the room, but the mouse cowering in a corner. We need to roar.

Reply by Bear900/CA on 11/3/13 2:16am
Msg #491075

I haven’t got involved because human nature requires some time for fuses and gaskets to blow.

You, Marian, and a couple of others have seen the light and are turning in a positive direction.
Knowledge and understanding of what is happening will not come easily to most, if at all. I have lived through this pattern of compliance and enforcement on the lending side.

For those who don’t know me, I am involved with the CA Association of Mortgage Professionals, served in many capacities including State VP, Education. Much of our activity is relative to CFPB law and compliance. We have fought some heavy battles and decided early on to work in a positive fashion with the CFPB. The CFPB now routinely calls us for input. We have a positive working relationship which doesn’t cure all our needs but helps us get our points across.

In short, 3rd party compliance has long been on our plate. I saw this blow-up with notaries as inevitable, just didn’t know what course it would take.

I should point out the strong resistance from NSA’s is almost identical in emotional tone that lenders went through. Those that didn’t understand the changes, or felt that the whole world was wrong and they were right are no longer among us for the most part.

Where do we go from here? Become educated in the reasons for the new process. Recognize what you cannot change but what you may positively influence. Collaborate as professionals. Reach out to other organizations and lenders that have marched in front of us. They are heavy veterans in this area of change. There is a pattern to follow.

Stop wasting time pointing out what shouldn’t be, and focus our energies on learning how to adjust first mentally, to what now exists. We are facing every change paradigm of those before us so don’t feel alone.

For the most part, comply. Any less we will give more justification for others to take charge. Understand that our compliance is ultimately from the lenders driven by the CFPB.

Learn how to cut out the monkey in the middle that is dictating compliance in behalf of the lenders and dictate it for yourselves. That leaves a world of options.

Reply by FGX/NJ on 11/3/13 6:43am
Msg #491078

The weak link in protecting the consumer is the use of "signing services" which are unregulated, unlicensed and un commissioned. The lenders and title come under federal and state regulations and can be finded or barred from doing business in a state. Notaries can lose their commissions.
"Signing services" come under no such regulations. How can any lender or title company claim they are exercising due diligence if they use these services?

Reply by CarolF/NC on 11/3/13 8:09am
Msg #491083

this is so accurate. I have been calling agencies for years about issues and no one was aware of these SS. I won't put much in writing anyone who wants to talk with me I will do so by phone. There is currently a question of pending in the minds of consumer protection agencies as to whether the groups responsible for compliance under the CFPB can subrogate that control to a middle man. It seems clear that they can when you read the law, but believed to be a "weak" link.

Reply by sueharke on 11/3/13 10:45am
Msg #491092

Love the response. Speaking as both a Notary and CPA, I have been waiting for the calvary to arrive who sees the picture the same way as I do.

Reply by NVLSlady/VA on 11/4/13 12:51am
Msg #491176

<<"Become education in the REASONS for the new process. Recognize what you cannot change but what you may POSITIVEly INFLUENCE. COLLABORATE as professionals. Reach out to other organizations and lenders . . .">>

Love this "RCI" post.

Reason -on the new requirements
Collaborate - with professionals
Influence - in a positive way for change

(Maybe should be CRI . . .)

Reply by ToniK on 11/3/13 7:34am
Msg #491079

Im not surprised at all

in my Title license class back in May, our instructor warned us that things were coming down the pipes and it wouldnt be pretty.

Reply by Bear900/CA on 11/3/13 2:05pm
Msg #491128

Re: Feedback

@ FGX/NJ: all good points. If SS’s are not a protective umbrella to the NSA they should be avoided. Personally, I don’t care for the option of using them expecting compliance protection.

@ CarolF/NC “whether the groups responsible for compliance under the CFPB can subrogate that control to a middle man.”

No, they can’t. The middle man can only be used to facilitate. Control and responsibility for CFPB compliance is upon the lenders and passed down to all 3rd party vendors.

@ sueharke Good to see you’re in tune!

@ ToniK the compliance requirement for 3rd party vendors came about in 2010. Too bad the instructor didn’t go into detail. More of us should have known sooner.

@ 101livescan and Lee/AR, and others who PM’d – I will be available Tuesday as have personal life too. Will try to send some information in between.

Regards,

Ben

Reply by Claudine Osborne on 11/3/13 7:39pm
Msg #491154

Re: Feedback

Bear900, Im sorry Sir and don't mean to be disrespectful..But Im not sure I have seen you on Not Rot before..I do like what Im reading from your posts..I would like to go forward in a positive direction because all of this talk is a waste of time..I just do not know what I personally and professionally can do to assist?

Reply by sueharke on 11/3/13 10:17pm
Msg #491170

Re: Feedback

You may assist by understanding the rules and law and become more assertive with signing services/title company/lenders as to your responsibility in the process. When anyone requests that you do sometime illegal, let em know to go back to business school and learn what you already know.

All the talk is to give notaries the skill to stand-up for themselves and know what options are available to make a good decision. Take time to read it as many often as needed to understand how it affects you.