Posted by Notary On The Go on 11/8/13 4:40pm
Msg #492004

JMT Response to SPW, NNA and BGC

I appreciate all of the e-mails that have been received regarding the SPW and understand all of your concerns. I will try to address the most common questions and comments. Since it is not possible to answer each of your individual questions because of the volume, we will keep you informed as best we can.
Before I go over the aforementioned questions, I feel that it would be helpful to give you some personal background and some background about JMT:
The concept of mobile signings began in the mid-to-late 1970’s. I became what we now call a
mobile notary, signing agent, etc… in 1978.
At that time, traveling to the borrowers’ homes was only done in California and there were only three signing services companies. All three companies were based in California. We were required to type ALL of the loan documents that we were to take to the borrower. That was not done with a word processor or any computer program! Those didn’t exist. The closest thing we had to any of that was an electric typewriter. If we made a mistake, we had to start over.
There were NO fees paid for any of that process. It was all driven by the sale of insurance at the time of the signing. If we didn’t sell insurance, we didn’t receive any compensation.
In the early 1980’s, some signing services began charging fees for signing the documents. As the practice of mobile signing slowly spread to other states, insurance as a means of income disappeared and fees became the norm. We still had to type our own documents. Of course, at that time, there were only about 10 documents to a loan package. With State and Federal laws and a “sue them” inclined public; we now have 100+ page document packages to contend with.
Over the years, the whole industry has changed dramatically and it continues to change.
Why am I telling you all of this?
Because I think it is important that all of you understand that I know from personal experience what you are doing and the frustration that you are feeling about the changes that are occurring. I spent many years in the field myself as a notary. Many companies have come and gone; many of whom left still owing you money. JMT and I have survived because we have adapted to the changes that have occurred throughout the years. The companies that did not or could not adapt are gone. I encourage you to adapt and survive so that you can thrive. Change is FRUSTRATING! Boy, do I understand that!
JMT is going to great expenses of time and money to adapt AGAIN.
Comment: This is just an NNA attempt to make more money
Response: JMT is neither a proponent nor a detractor of NNA. They are what they are.
At the end of this message you will find the content of two bulletins that NNA
issued on their web site.
You will also see questions I posed to NNA and their response.
Question: Are the fees paid to Notaries going to be adjusted?
Response: I have had no indication that any of the lenders or title companies are going to
Increase fees. As I understand their position in this matter, it is that this training, insurance, certification designation, etc, are considered the necessary
tools of the trade, just like a car, phone, notary commission, etc.
Will that change? I don’t know. My read on it is that they will not increase fees, but I just don’t know.
Question: If I qualified for the NNA’s designation of Notary Signing Agent, will that qualify?
Response: This is probably best answered in the NNA bulletin that follows. My understanding is that they are going to make some allowance for fees paid, but I don’t know what consideration will be made regarding the CSS designation. I have tried to high light some areas in their bulletin.
Question: I am a Certified Signing Agent with NNA, will that be approved by JMT?
Response: You will see in the NNA bulletins that No one is approved to issue the CSS designation yet. (Please see previous question and response). NNA will obviously be approved by the SPW, so I assume that it will transfer over.
JMT will be preparing to apply for the License that is to be issued by SPW to
enable us to provide the training, E & O coverage, background checks and testing capabilities to enable us to issue the CSS designations.
It is my intent to provide the training, testing, and certification at no cost to our
notaries (we would of course appreciate it if you wanted to be included in our data base, but that will not be required). The only cost to the notary that I anticipate will be the net cost of the E & O policy and background check. We are in the process of trying to identify insurance agencies in each state that can write those policies. If you have an insurance agent that you have purchased an E & O policy from and would like to refer that agent to us, it would be greatly appreciated.
We are also working with two companies to enable approved background checks. These will also be provided at the net cost.
Question: If I purchased a background check through a company that JMT suggested, will
that be accepted?
Response: I don’t know. I am working to get that approved. If not, and you have to obtain an additional background check to qualify, I will do my best to arrange some type of credit to you.
Question: I have already received and background check from a company that was required by the lender that I work with. Will I have to get another one?
Response: One of the things that I hope will be a benefit of all of this is that the industry will accept the standard represented by the CSS designation. Since the major lenders and title companies are signing onto this idea, I am hopeful that it will not take long to be recognized as a standard within the industry. Time will tell.
Question: Why do I have to have annual background checks now?
Response: What was mentioned at the MBA conference, was that many things can happen in a year’s time, and we want to make sure we are not sending someone into a home that could be unfit.
I can’t fault that reasoning. JMT recently had a notary go to a home in a small town and the borrower reported that that notary had been convicted of a crime.
That did not show on the background check, because it happened shortly after the check was done.
Question: Before I received my notary commission the State did a check of criminal records and I studied and passed the notary exam. Why do I need to do this?
Response: States do not do an extensive of a search as is being required. The tests to become a notary only address the act of preforming the notary function. It does not address any of the other processes involved in the loan process.
Question: Will attorneys and people with escrow experience be required to qualify?
Response: There was no indication that they would not need to qualify using the same process as anyone else. That is something that should be addressed and I will try to find an answer.
Question: Do these requirements comply with State and Federal regulations regarding independent contractors?
Response: I am not sure what you are referring to, but as far as regulations concerning lending laws, it is my belief that they do. Given the lenders and title companies that are involved, I am comfortable that compliance is a major factor in this.
If you are referring to the fact that we are all independent contractors, we can comply with what the companies we work for require or we can cease to do business.
While I have not addressed each individual question, I hope that I have addressed the substance of all of the questions that have been received.
I would encourage you to again visit the following site to see the magnitude of the lenders and title companies that are behind this effort. I don’t think it is going away.
http://signingprofessionalsworkgroup.org/about/members/
The following are from bulletins that NNA issued.
Bulletin #1
The collapse of the housing market and numerous other crises have caused the government to significantly increase its scrutiny of the mortgage industry. This challenging new environment is forcing lenders, title companies, signing services and others in the mortgage origination world to take a hard look at how business is done.
Of all the people involved in originating mortgages, Notary Signing Agents received little attention. That is changing. In order to comply with federal mandates, lenders now recognize that the tens of thousands of Signing Agents who represent them at the signing table need to be better qualified.
As a result, leading lenders and title companies gathered to create the first set of recommended best-practice standards for Notaries handling loan signings. These standards are called the Certified Signing Specialist Standards and form the basis of a new designation for signing professionals: the Certified Signing Specialist. That is a Notary who has met all of the elements of the standards.
The publication of the Standards is among the most significant developments to hit the loan-signing profession in years, and it will help you meet the needs of nearly every firm in the real estate finance industry. In turn, you will be eligible for more jobs that will help you thrive in the current market.
A special committee called the Signing Professionals Workgroup (SPW) comprised of executives from major lenders and title companies, developed the Standards. The National Notary Association was asked to serve as an expert advisor. In that role, we helped the Workgroup understand the scope of your responsibilities and the challenges you face.
“Signing Agents often have had to meet widely varying requirements and qualifications from one company to another,” said NNA President and CEO Thomas Heymann. “The Standards and new Certified Signing Specialist designation are intended to provide a set of qualifications and practices for everyone. Ultimately, they should help reduce the number of different requirements Notaries face to keep getting loan-signing assignments.”
“The banks and title companies depend on the professionalism and competency of the person at the signing table,” Cristy Ward, Chief Strategy Officer of Mortgage Connect and a Workgroup participant, said in a recent interview. “Upholding the recommended Standards assures a consistent closing experience for all of the parties involved in the transaction.”
In fact, a key focus for lenders and regulators alike is improving the borrower’s experience. In that context, even though you generally don’t work directly for lenders, you represent them with every loan you handle.
Speaking during an industry panel discussion at NNA 2013 Conference last June (see the July 2013 issue of The National Notary), Donna Davidson, Vice President of Vendor Management for Citibank, put it succinctly: “Most of the time, you’re the only face our borrowers are going to see.”
The workgroup coined the Certified Signing Specialist designation for two reasons. First, the concept of a Certified Signing Specialist recognizes the fact that you possess qualifications and expertise that those outside your field do not. Second, lenders prefer not to call you “agents” because that term carries a specific legal meaning that implies you have the authority to act on their behalf as though they were personally present.
Bulletin # 2 With tens of thousands of Signing Agents and numerous lenders, title companies and signing services in the real estate finance environment, there is naturally going to be a transition period before the Certified Signing Specialist program is fully in place. Here’s how the transition will work:
In the coming months the Signing Professionals Workgroup will create the exam and begin to approve vendors authorized to offer the Certified Signing Specialist designation program. Once that occurs, you will be able to obtain your certification from vendors such as the NNA.
In the interim, the NNA has updated its current certification program to comply with the Certified Signing Specialist Standards, and you will continue to be an NNA Certified Notary Signing Agent.
Some lenders and title companies are already requiring the annual background screenings, as prescribed in the Standards. Here’s how to accomplish that:
If you purchased a background screening-Notary Signing Agent certification package from the NNA in 2013, wait until we contact you. Your screening meets the Standards. The NNA will contact you one year after your last screening to authorize another at no extra cost. If you purchased a screening from the NNA in 2012, we will contact you to let know that you need to be re-screened. That screening will be offered at a one-time discounted fee of $39. If you purchased a screening from the NNA in 2011, you will need to be re-screened. That screening is offered at a new $65 rate. If you purchased a background screening from another vendor in 2013, send us a copy of your receipt. You will be given a store credit for the amount you paid for that screening when you purchase a new screening from the NNA at $65.
Going forward, the normal cost of the more rigorous annual background screening compliant with the Signing Specialist Standards as well as the Certified Signing Specialist annual exam from the NNA is $65.
As mentioned above, the SPW is developing procedures for approving vendors to offer certification services, such as background screening and certification exams. The SPW believes that a strong vendor management program is crucial to the success of the Standards because vendors will be the ones verifying that you are properly qualified. To be approved to offer certification services, vendors will have to demonstrate that their programs fully comply with the Standards. The SPW also will create a system to monitor and audit vendors to make sure that their certification services remain in compliance with the Standards.
These are Questions that I directed to NNA and their responses.
I have several questions for you:
JMT Questions to NNA and NNA response
1. Has NNA issued any CSS certificates yet? We had a notary send us what she purported to be a CSS certificate. There was not any indication of who the issuer was, but she claimed it was NNA.
No, the NNA is not issuing the CSS designation. The SPW has not licensed any providers to issue the CSS designation yet. The NNA continues to issue our Notary Signing Agent Certification, as we have since 2005, which includes the NNA’s test and background screening. The background screening included in our current NSA certification does meet the standard for background screening as set by the SPW.
2. Are the test questions and answers ready yet? How do we get them?
No, the SPW’s examination committee has not completed the bank of test questions. When they do, the questions will only be released to approved providers, who have been licensed the right to issue the CSS designation by the SPW’s review committee.
3. What/who is the approval process to become approved to issue CSS certificates?
JMT would like to get approved to certify our notaries.
The Review committee has not identified the process or requirements to become an approved provider. I would expect this to come sometime in the first half of 2014.
4. We are receiving numerous inquiries from notaries saying they just took NNA’s course etc and they want to know if they will receive credit from you for those courses and background checks. Has NNA set any policy about that?
The NNA’s background screening meets the SPW standards, which should make the NNA certified Notaries eligible to work for most of the title companies out there. The exam will not transfer to meet the CSS requirement, and I’m unsure of what the transition plan will be until the SPW Review Committee gets organized and determines the requirements.

Reply by JimAZ on 11/8/13 7:10pm
Msg #492009

First time I've heard they want to decide who we get our E&O insurance from as well as all the other crap. Next thing we know we will be told what kind of car we can own and what to name our dog.

Reply by MW/VA on 11/8/13 7:12pm
Msg #492010

I like that reference, Jim. ;-) Little by little, their

true motives are showing through. @#$%$$#

Reply by desktopfull on 11/8/13 10:27pm
Msg #492033

I'm still trying to figure out what my driving records has

to do with being approved to notarize documents.

Reply by Sandra G Holland on 11/9/13 9:40am
Msg #492063

Our Driving Records

When I worked for a state agency, we were told that our driving records could affect our employment. At the time, I thought that was really strange and controlling. Consider, however, if it shows DWI's or even driving without a license. This would say a great deal about us. I know an elderly man who is extremely arrogant, especially toward women, who has several speeding tickets. Suppose our record shows that we can't back up without hitting something. Yes, we aren't supposed to be in the borrower's driveway, but suppose that is the only place to park and they have small children. If I got a traffic ticket, I wouldn't even want to let my relatives know, because it would be so embarrassing. For some people, it is a way of life.

Reply by desktopfull on 11/9/13 11:32am
Msg #492079

Re: Our Driving Records

1. I'm not an employee of the companies I work for.

2. If someone drove like you're stating, they would have so many points on their license that the state would have either suspended or revoked their license.

3. Since I'm not an employee, I am personally responsible for any damages that I do to anyone's property. Not the company that contracted my services.

4. The SOS in this state won't commission a notary with DUI's, those are felonies.

Reply by Belinda/CA on 11/8/13 10:32pm
Msg #492034

I've been saying where we get our E&O is next to be revealed. NNA is already geared up for it. Purchasing it though them. I discovered that about a month ago. If you would like details on that PM me.

Reply by desktopfull on 11/8/13 10:35pm
Msg #492035

What's next making us re-new our commissions through them? n/m

Reply by JimAZ on 11/8/13 11:07pm
Msg #492044

I purchase my E&O from the folks that want to help us and support this industry. Right here at NotRot. Just did it today for the next year.

Reply by JimAZ on 11/8/13 7:21pm
Msg #492016

And you can only own one dog and must ride your bike to all signings within 10 miles.

Reply by MW/VA on 11/8/13 7:52pm
Msg #492017

Don't forget that your dog has to have a bgc, sign a

release, and your bike has to have a license.

Reply by Sandra G Holland on 11/9/13 9:46am
Msg #492064

Doggies

Lol. In my grandparents' day, their county required a tax on dogs. It was 50 cents for a male dog and 1.00 for a female. Don't let your county tax office see this as it might give them some ideas. I still don't understand why we are paying taxes on a house we own! Ok, I'm not going to get on my soapbox any more about taxes.

Reply by Susan Fischer on 11/9/13 11:14am
Msg #492076

Re: Doggies - In most counties, dogs must be licensed, which

is a tax that pays for animal control/shelter expenses. We pay property taxes on our houses to fund fire/police protection, public services, libraries, and education.

Reply by desktopfull on 11/8/13 10:02pm
Msg #492029

All those demands from a company that adopted the NNA's

recommend fee schedule (which the NNA now denies doing) and only wants to pay $50-$75 for a closing. Yet we are expected to pay hundreds to the NNA to receive those generous offerings. I love the way the NNA, TC's, Lender's and SPW's review committee are insinuating that Notary Public's are non-professional and criminals.

However, you want to talk about unprofessional? How about the TC and Lender that doesn't even bother to tell a borrower that their loan was approved. Neither bothered to review the HUD or provide a copy to the borrower before closing. Neither informed the borrower that they were short and needed funds for closing. Don't inform borrower they need a witness or copy of their ID for the closing. Don't let the borrower know that non-borrowing spouse needs to sign docs or even explain why they need to be there. Don't bother to make sure that ID's match vesting on docs. Being asked to break the law and back date documents because they didn't get the docs out on time or made errors on the originals sent. These are just a miniscule amount of the problems I run into created by the lack of professionalism from TC's and Lender's. But it's the notary's that are getting their pockets picked by the TC's and Lender's demanding we purchase products testing our professional capacity from only XYZ.

Maybe they need to look in the mirror and start paying more attention to their own duties rather than bullying the notary that saves their closing while dealing with irate borrower's.

Reply by MikeC/TX on 11/8/13 10:45pm
Msg #492039

Re: All those demands from a company that adopted the NNA

"Maybe they need to look in the mirror and start paying more attention to their own duties rather than bullying the notary that saves their closing while dealing with irate borrower's."

Although you are spot on about that, it will never happen. Stuff always flows downhill, so it's easier to blame the guy at the bottom who has to catch it. That is probably why they've come up with these "standards" - shift the blame to the folks carrying the bucket, and then they continue doing whatever it was you were doing.

You don't solve a problem by fixing what you think is wrong at the end of the chain, you fix it by figuring out what's wrong at the top. As the saying goes, "a bad workman always blames his tools"...

Reply by JanetK_CA on 11/9/13 12:56am
Msg #492048

Well said! n/m

Reply by spineyc on 11/9/13 12:45am
Msg #492046

Re: All those demands from a company that adopted the NNA

I completely agree! As it is a REGULAR practice to NOT inform the borrower of items listed in your post. In addition to, who is watching over all the signing companies who are here today gone tomorrow? How safe our our precious client's information that are in the hands of the many agencies who just disappear? Who regulates them???

Reply by MW/VA on 11/9/13 11:34am
Msg #492081

That organization is nothing without paying members. Many

of us won't support them in any way.

Reply by Jennifer Jackson on 11/9/13 4:04am
Msg #492052

I got the same email from them and I ignored it. I told them on the first go around that I have my background check done through Sterling and that everyone else is accepting it so I refuse to turn around and do it again through the NNA. Also, I just renewed this year so I just had a background check that I paid for. I have done maybe 2 signings for this comany so I did not put them at the top of my list as required people to "get back to."

Reply by BobbiCT on 11/9/13 7:56am
Msg #492061

Well stated, by the way ...

Do not forget that a business obtaining YOUR NonPublic Personal Information (aka NPPI or NPI) is required to provide YOU with its WRITTEN privacy statement, which includes how it protects your NPPI. Do not forget to ask for this every time your provide a background check or apply to be a vendor. For those of you who want to, run the privacy statement by your insurance carrier or attorney.

Not legal advice, just a personal thought from too many CFPB re NPPI seminars. I bring this up because this week I was notified of a "mass compromise" of NPPI data by an entity that had some of my NPPI. Scary thought was: what about those entities that don't tell. (At least in CT, the entity is also required to notify our Attorney General of the breach or compromise).

Reply by John/CT on 11/9/13 11:37am
Msg #492082

Re: "mass compromise" of NPPI data ....

Unfortunately, we see this all to often/too frequently when someone hacks into an entity's data base. At least you-know-who still has "Personal Identity Theft Insurance" as a free "member benefit" ... for the moment, anyway.

Reply by Ali/IL on 11/9/13 5:34pm
Msg #492116

Re: "mass compromise" of NPPI data ....

I submitted to JMT my report from Sterling. I was told that since it wasn't from the NNA that they would put me at the end of the list would call me only after everyone else was called.

From reading the email from them it bothered me how they say that notaries have to be better qualified?
Of all the people involved in originating mortgages notary signing agents received little attention?
We are not responsible for the collapse of the mortgage industry.

Geez

Reply by BobtheElder on 11/9/13 9:30pm
Msg #492153

"Question: Are the fees paid to Notaries going to be adjusted?
Response: I have had no indication that any of the lenders or title companies are going to
Increase fees. As I understand their position in this matter, it is that this training, insurance, certification designation, etc, are considered the necessary
tools of the trade, just like a car, phone, notary commission, etc.
Will that change? I don’t know. My read on it is that they will not increase fees, but I just don’t know."

So they want to increase our expenses... well, guess what, I haven't raised my fee in way too long, so if this actually comes into play expect all of us to increase our fees accordingly, just like any other business where expenses rise...

If these standards go into place I'd guess that more than half of the notaries now doing signings will either not qualify or will just quit doing them. This will force a general fee increase as the volume picks up for those still working this business.

Just my two cents...

Reply by desktopfull on 11/9/13 9:40pm
Msg #492154

So they want to increase our expenses.. SOP for xyz isn't it n/m

Reply by Joseph and Patricia Nagy on 12/19/13 3:56pm
Msg #496657

I enjoy working with JM. A great company with a great reputation. The loan pkgs are not overly large and there is never any fax backs.