Posted by A S Johnson on 11/27/13 9:28am
Msg #494243
Mortgage industry standards
E-mail from xyz:
Christ Sturdivant, xyz Bussiness Development Director, recently answered questions of Marlyand Notaries about the new standards for mortage industry signing.
Question, how is this xyz employee and unbias third party to answer these questions?
Should he not have a disclaimer as to who he is paid by and that he set xyz policy to get it more $$$$.
As I watched some Thanksgiving TV specials, musicains have a standard fee, as do most performers for any apperance, and also set how many must be used for a show, to prevent the use of electronic made sounds, that would put them out of a job, Why are Notaries any different? Are not we as "Professional"? Why can't we set up state unions? Or as lawyers, state associations to supervise any Notary and insurance banking education, testing, commissioning, licensing. Why is this the proviance of a for profit company or an industry managment who benefit from lower fees paid to Notaries or bypassing Notaries all together.
How do these "standards" or security requirements work when documents are sent directly to the borrower who my or my not have a lazer printer or my take them to third party print shop which has not meet the same requirement as Notaries or that them to non- cetrified Notaries for signing, who see the same personal information as we.
| Reply by FGX/NJ on 11/27/13 9:57am
Msg #494249
Actors Equity standards.
http://www.actorsequity.org/agreements/agreement_info.asp?inc=001
| Reply by NVLSlady/VA on 11/27/13 10:17am
Msg #494250
Not sure there is a question here (at least one that hasn't been discussed), but I will add a comment:
Recently a news article by D. Gutman (posted on LI)* caused me to send this letter (only partial shown here) to our state Land Title President:
Dear Ms. Allen:
It seems logical to me that the state's own title regulatory agency be in charge of establishing procedures to vet its co-servicers, including the notaries who supervise loan closings . . .
Finally, it appears that the NNA (National Notary Association) is filling a role that only a state regulatory body should aspire to. In the eyes of large Title firms and lenders, however the NNA's proposal to establish a Signing Professionals Workgroup with a set of industry Best Practices is gaining momentum as we speak . . . We do not feel that a national organization should dictate standards for Virginia sub-vendors/notaries.
_____________
That was the gist of the correspondence. In my email to her, I also referred to Mr. Gutman's article: ["The newest and possibly the most likely solution and alternative to vetting of title and settlement companies comes from the American Land Title Association as a result of discussions with the largest title underwriters and the largest mortgage banking entities. The result is a set of seven best
practices . . ."]
I also agree with his point that each lender has to decide what it will accept from its vendors in order to comply with CFPB standards. Strange observation, though from him: "the Consumer Financial Protection Bureau has not made any changes in its directives to banks."
If that is true, why are they attempting to fix what ain't broke?
I don't think anyone disagrees that Standards are needed - just where they are coming from and who they are meant to target. I mean think about it, a TC calling a SS to get a notary vendor . . . too much (mud) in the middle. My signers need to know that I am ultimately responsible for my actions and that I'm putting MY business on the hook here when something goes wrong. And for that, I just need my own set of best practices/standards and my state commission's permission to act. That is the message I plan to deliver to lenders and borrowers in the upcoming year.
* http://nydailyrecord.com/blog/2013/11/12/title-track-alta-establishes-set-of-best-practices/#ixzz2lrUVlCkr
| Reply by NVLSlady/VA on 11/27/13 10:31am
Msg #494251
Oh and don't get me started
about lender standards of conducting business. How does a borrower NOT know the difference between a HELOC and fixed equity loan? They'll know if you take the time to explain it to him/her. That's is what I had to do in a signing yesterday. Borrower had no idea what she was getting (thought it was an installment loan). I was happy to enlighten her - and I serviced both types of these once upon a time.
If I thought I going there to sign and go . . . Wrong! I was glad to help put it all together for the signer - and most of all happy that I charged an appropriate fee to the SS for my time.
Please, don't let anyone devalue your service (it is not just about printing fewer docs). Set a standard and Stick to It!
| Reply by NVLSlady/VA on 11/27/13 10:34am
Msg #494252
I repeat: Set a Standard and Stick to It ;) n/m
| Reply by Linda_H/FL on 11/27/13 11:37am
Msg #494258
You're going to hate me for this...but
"How does a borrower NOT know the difference between a HELOC and fixed equity loan? They'll know if you take the time to explain it to him/her. That's is what I had to do in a signing yesterday. Borrower had no idea what she was getting (thought it was an installment loan). I was happy to enlighten her - and I serviced both types of these once upon a time.
If I thought I going there to sign and go . . . Wrong! I was glad to help put it all together for the signer "
IMO you were way out of line - unless you're the loan officer of loan originator, title company or underwriter on this loan you had no right to do this. And notaries that stretch boundaries like this are probably one of the main reasons we're seeing the "control" that nobody wants.
KNOW YOUR PLACE!! This was not your place. Although you may have known the answer and known the difference (which many of us here do), as a signing agent/notary you were way beyond your authority.
JMHO
| Reply by Larry/IL on 11/27/13 11:52am
Msg #494259
I agree with Linda, maybe even UPL here. n/m
| Reply by Scriba/NM on 11/27/13 12:41pm
Msg #494263
This is Exactly Why All of This SPW Business is Happening
Instead of simply going out to complete a loan signing, the "helpful" notary is busily explaining "differences" and performing the loan officer's job. Hence, the problem. Perform the task you were hired for, and do it properly. Don't be the "Loan Officer. You are there only to briefly explain the document before you, get it signed and get it back to title. This kind of stupidity is what is what has been destroying this industry, and spawning such things as "scripts" because notaries won't simply do what they were hired to do.
| Reply by C. Rivera Chicago Notary Services on 11/27/13 1:10pm
Msg #494267
I re-read the code and for the newbie, these are great.
A great beginning for someone whose never worked in this industry, at all.
When I first started in this business, I had absolutely NO idea what I was getting myself into. Luckily my experience as a real estate paralegal, and working as a public servant for ten years, many years ago, gave me the skills I needed to perfect my business, technique and knowledge on various loan /mortgage transactions. And I find myself learning new things everyday.
I just don't believe that the XYZ was approached FIRST by industry lenders and title agencies for assistance in making the notary signing agent profession "standard" for all that work in this profession.
I guess those that are already CNSA's have no worries, they will get 'grandfathered' into the CSS title, with lenders and tc's using the XYZ website as an online reference.
Of course those that do take the new CSS exam, and have NNA membership, will probably have to list their certifications on their profile.
I truly hope that if and when all of this begins or goes into effect, that not only will work pick up, but that we will start gaining the respect we deserve in this industry.
The post by the AAN said it best, that it is clear that the NSA is an invaluable asset and much needed in the mortgage / loan industry. I believe we will finally have some teeth!
But then again, I'm an introvert optimist... 
| Reply by NVLSlady/VA on 11/27/13 4:21pm
Msg #494309
Re: This is Exactly Why All of This SPW Business is Happening
<"You are there only to briefly explain the document before you, get it signed and get it back to title. This kind of stupidity is what is what has been destroying this industry . . .">
Ok, even after braving holiday traffic and trip to doc's office, I'll respond (lightly) to this one:
What I did is exactly what is described above; the subject only came up when a particular document mentioned "checks" as disbursement - and bor didn't understand. I made a judgment call, and for those who feel that is UPL, I think you're way off base; those who feel I did the L.O.'s "job," borderline, perhaps. No loan t/conditions were addressed.
The thing is, I'd do the exact same thing if had to do over. You don't get to elevate yourself to "signing agent" when it's convenient for you to do so, and be "just a notary" there to witness signatures every other time.
As for the "kind of stupidity" that is killing the industry, it might be summed up in a word (or 2): Fear and Inflexibility.
We're going to have to get ourselves "unstuck" and embrace the future - in other words, Get Over It and make the best of an unpleasant situation. Be sensible here people: Blaming the newcomers is dumb (and doesn't become the 'said' professional)
p.s. As for hating anyone, I've got 99 issues - and this ain't one! I appreciate all the feedback and opinions; after all, everyone's got one. Thanks for hearing Mine.
| Reply by BrendaTx on 11/27/13 6:00pm
Msg #494313
NVLSlady/Va - you are a class act.
Right, wrong, whatever...impressive response.
| Reply by C. Rivera Chicago Notary Services on 11/27/13 12:54pm
Msg #494265
agree with Linda..that is where you pick up the phone and
call the Loan Officer or Title...
I understand it is hard NOT to answer those questions, took me a while to deviate, BUT in the end, you are saving your own a$$.
| Reply by MW/VA on 11/27/13 1:31pm
Msg #494272
I agree with Linda. There's always been a lot of concern
in our industry that the notary was saying things they weren't authorized to. I can explain basic things, but any loan issues are for the LO to address. That's what they're paid the big bucks for, and it is their responsibility, plain & simple.
| Reply by Doris_CO on 11/27/13 12:22pm
Msg #494261
Re: Oh and don't get me started
NVLS, I use the loan documents to point out the difference rather then "explaining" the difference. (Although very rarely do I have this situation). The HUD has all that information and will indicate if the rate will change. If it's a fixed rate, the question about the rate changing will have the answer "no". If the rate changes, there will be an explanation of when and how and how much it can go up or down. Then, if the borrower calls their LO, they can read from the paperwork rather then saying the Notary "told me......blah, blah, blah".
| Reply by jnew on 11/27/13 1:53pm
Msg #494279
Need for standards
This is the type of thing that should be covered under some kind of defined standard operating procedure for notaries. You will always have to vary your duties under the title and lenders instructions, but what we should not be doing should be defined by someone. This whole idea of how notary signing agents operate is somewhat nebulous. From title companies with little instructions to signing companies with a lot of Mickey Mouse rules that are redundant and unnecessary. The biggest offenders of document security are the signing companies. I continue to receive PDF documents from the signing service that I know were downloaded from secure websites. They are the ones who break the security chain and get to decide if a working signing professional gets a fair price for their services. They also decide if and when the notary gets paid. They keep a major portion of the fee for what? Referring the job to someone who actually does the work. They should have twice the oversight that the notary receives. They should be background checked and I feel they should have to submit fidelity bonds against lost or refusal to pay signing vendors/professionals.
| Reply by jnew on 11/27/13 1:55pm
Msg #494280
Re: Need for standards
Missed a point about document security. Although the signing service downloads the pdf images for the documents securely, they send the pdfs out to the notary as an email attachment. The security chain is only as good as its weakest link.
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