Posted by dgd/CA on 11/26/13 5:17pm
Msg #494174
The AAN just published its initial response to SPW and
of course, NNA happily posted it to their FB page. 
The Link: http://bit.ly/1ideDeO ... Pasted below for all to read:
New Standards for Notary Signing Agents
In the past month, we have witnessed the development of a group that many of you see as a high concern for notary signing agents. In late October, the Signing Professionals Workgroup© (SPW) rolled out its website and announced its existence. The announcement came through a press release dated October 29, 2013. The press release states that the SPW is charged with setting standards and best practices for notary signing agents. The member roster of the SPW includes six national lenders, eleven national title or settlement companies, and the National Notary Association. Readers and members have had many questions for us about the SPW, its goals, and the information on its website.
Below is an overview of our understanding of the issues that surround the SPW. To the best of our ability, we have answered the questions that you have asked.
Keep in mind that the AAN has not had an opportunity to visit with the organizers of SPW, nor any member. There are likely many details that the AAN does not know at this time. If any of the following is not accurate, we welcome SPW principals to contact us to make a correction or to provide more details.
Why was the SPW formed?
Briefly, the Consumer Finance Protection Bureau (CFPB), a federal agency, announced in April 2012 that it holds lenders responsible for the actions and credentialing of “service providers.” In this context, the term “service providers” includes notaries that contract to conduct mortgage loan signings. The AAN agrees that notary signing agents are indeed a “service provider” as the term is used in the CFPB memo.
The AAN has reviewed the bulletin from the CFPB. It appears that there will be significant changes that affect our members who are notary signing agents. The changes will undoubtedly involve expense and regulatory compliance mandated by the federal government. However, we conclude that there is a silver lining.
Notary Signing Agents will benefit from the changes
The AAN is not in favor of additional burden or expense for notaries or notary signing agents. Undoubtedly, with the requirements for compliance that have been imposed by the CFPB, expense and change will become a reality. However, we see this as a milestone. The requirements imposed on you as a mortgage loan service provider validates the existence of your importance in the loan process.
That notary signing agents are acknowledged by the title insurance and mortgage industry, and that you are recognized and documented as service providers in a federal regulation manual cements signing agents’ futures into the mortgage loan process.
For many years, the position of notary signing agent was nebulous, at best.
For those who worked in the mortgage industry prior to the late 1990s, it was clear that signing agents were a convenience, rather than a necessity, to borrowers, lenders, and title companies.
Although the changes are uncomfortable, we congratulate notary signing agents on standing the test of time and evolving from a convenience to a permanent necessity. Notary signing agents now have a recognized career path; they are critical parties to the loan process.
Why doesn’t the AAN fight this for us?
Some members have requested our assistance in stopping the new requirements. Many members have asked us to support them in fighting the SPW’s requirements.
The AAN is successful because of our members. We took your requests seriously and reviewed your concerns. The AAN has also reviewed thousands of pages of documentation related to this turn of events.
We conclude that change is imminent and there will be adjustments that notary signing agents must make in order to be in compliance with regulations imposed by the CFPB.
We have decided that supporting you during the transition is our goal at this time. We will keep you abreast of updates or new developments.
Will this be costly for notary signing agents?
There will undoubtedly be costs associated with training, testing, and certification. However, we do not know what those costs will be. We are hopeful that those who provide the products related to the regulatory changes will bear in mind that without notaries, no notary support organization can be successful.
Where will we get the training, testing, etc.?
The AAN does not know the answer to this. We are optimistic that an approval process will be established and that all interested and qualified vendors may participate. We hope that vendors will be allowed to obtain the exact approved specifications of the background checks, training, testing, and certification in order to prepare their proposals.
We have read about the intellectual property rights that relate to the new standards and that they are held by the SPW. We hope that the SPW will allow vendors to sign non-disclosure agreements and have full access to the standards so that fair and professional competition drives the best value for notary consumers.
Because of the statements that relate to anti-trust agreements on the SPW website, the AAN does not anticipate that only one or two private companies will be sole source of background checks, training, testing or certification. In a free enterprise economy, competition assures fair pricing for consumers. The catalyst for the SPW is federal compliance; therefore, we are optimistic that it will be handled fairly.
Must our titles change to Certified Signing Specialist?™
To paraphrase, the SPW says that notary signing agents who have completed credentialing and compliance will be called “Certified Signing Specialists™.” That is not a mandate of the federal government, as far as we can tell, but it seems to be the goal of the SPW.
What power does the SPW have? Does SPW belong to the NNA?
The AAN views the SPW as a special task force with a mission of setting standards on a new frontier for notary signing agents.
It is no secret that the National Notary Association (NNA) and the AAN are competitors, but both entities state missions that indicate that they support the roles of notaries public. Many of you express concerns that the National Notary Association “owns” the SPW. Here is the way that we see the relationships. We welcome input from the NNA or the SPW to correct any misunderstanding that we may have.
Lenders and title companies create income streams for you, our members. Certainly, the NNA sees lenders and title companies similarly.
These entities must comply with regulations issued by the CFPB. They need help in setting up the best standards for notaries to make it easy to qualify those who can handle loan signings for them.
The NNA has created a place for collaboration between lenders and title companies. Yes, it does appear that the NNA registered the website for the SPW, and that it may have obtained a trademark or copyright for some of the terms. However, we are optimistic in our belief that the NNA has done so by taking a role as facilitator.
To become an SPW member (associate or voting), one must be an employee of an Industry Member of the NNA. The cost of that is $1,000 and it is paid to the NNA. One must also apply to be a member of the SPW at a membership fee of $1,000. While it may seem that the NNA is making money on this project through membership fees at $1,000 per member, there is overhead involved. The NNA is receiving income through the SPW membership, but we do not believe that the entity is profiting on this project through membership fees. The fees paid to the SPW are typical amounts requested for interested parties to sit on important taskforce committees.
Why didn’t the SPW or the NNA ask for input from notary signing agents?
We do not know the answer to that. In earlier weeks, the AAN considered joining the SPW so that we could carry your letters and concerns to them. We polled many of you to get feedback. Some thought it would be helpful. Others did not. The responses were about 50/50.
We encourage the SPW to open a dialog with you.
Why isn’t the AAN a member of the SPW?
If joining as a member of the SPW will benefit our members or the notary signing agent community at large, we will consider it. We will take steps to become engaged in the SPW if there will be a positive effect. Bear in mind that the AAN was not on the inside track with SPW. The AAN learned of the existence of the SPW about the same time that you did. The AAN has not applied for membership and will only do so if it is a means to support our members.
Will the AAN offer background checks, training, testing, or certification to its members?
If the AAN cannot create a better experience for members through offering one or more of the required credentialing products, we would prefer to concentrate on the things that we do best and continue supporting members in that way. So, our answer is a resounding “We do not know.” There are too many unknown factors at this time.
I have concerns about the background check procedure. Can you help?
As stated above, we are not on the inside track; however, we are interested in your issue. What you may be referring to is that you are concerned about the personal information that you submit for background checks being shared with affiliates of your hiring entities. We are aware that members are concerned about this. We will follow the issue and assist if we can. An inquiry has gone to the CFPB, but a response may take a long time.
Why should I be a member of the AAN?
AAN membership fees are $19 per year. All members pay $19 no matter what their roles as notaries public. We provide training, educational publications, advocacy, and other professional association benefits. We keep you informed and are available to answer questions about your notary in a nimble and responsive manner. Our members receive their notary supplies at deep discounts. The AAN is very aware that there may be a need to create programs to support notaries in their careers and to advocate for them. We have some ideas on the drawing board. We will keep you informed.
No matter what the future, the AAN maintains our commitment to you that you will find no better value in a professional association.
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