Posted by 101livescan on 10/10/13 9:17am
Msg #487602

More on background checks from Signature Closers

I received this clarification this morning from SC on background checks.

Yesterday, we sent the below email. Thank you to those that responded with questions, concerns, and updated background checks.

Since sending that email, here's what we learned and apologize for any confusion we caused:

The NNA plans to roll out a 1-year background check program. We will let them communicate the program details to NNA members when the program is ready.

The NNA issues 2-year background checks for now.

Bank of America is requiring our client to have notaries with annual background checks. This is NOT a CFPB requirement.

The CFPB requires notaries to have a background check, but the background check is good for 2 years, which has also been and will continue to be our requirement. The CFPB has no plans to change this requirement. Individual lenders (like Bank of America) may have their own requirements that are more stringent than the CFPB requirements.

That said, if you want to close a file for us and the lender is Bank of America, then your background check must have been completed within the past year. If it is older than one year, then you can pass on the closing or send us an updated background check (from any search provider).

At this point, no further action is required on your part.

Thank you again for your service and sorry for the confusion we may have caused.

So soon background checks must be done annually. That is completely understandable. Our vendors want to make sure we haven't gone to the dark side. Just more expenses for the notary to complete. Tax deductible as a valid expense to conduct NSA business.

Or you could just do GNW and skip the background check altogether and all the drama that goes with this business to sign for lenders, title and escrow.

So we're beginning to see how lenders are tightening the screws on vetting the notaries, but how about the middle men Signing Service companies?

Reply by MW/VA on 10/10/13 10:01am
Msg #487610

IMO this is another move by XYZ to make more money! The

idea of an annual bgc is ludicrous, IMO.

Reply by Anita Edwards on 10/10/13 10:01am
Msg #487611

Another cost to constitute low fees. Oh boy. LOL

Reply by 101livescan on 10/10/13 11:05am
Msg #487625

And, yet I can understand them wanting to make sure no one has made serious blunders or incurred lawsuits for negligence or wrong doing. There is so much fraud in our business. Mortgage fraud is bigger now than ever, even with all the processing/underwriting checkpoints.

Reply by MW/VA on 10/10/13 6:22pm
Msg #487689

See msg. 436507. There's actually been very little fraud on

the notary side of things.

Reply by Linda_H/FL on 10/10/13 11:56am
Msg #487628

Yeah - I got this too - note it's for BofA loans only...

not the CFPB or the feds or any state agency - BofA - so I'm gonna get a BGC every year to appease BofA? And appease Signature Closers, who calls me once in a blue moon? Umm..no.. and I think BofA ought to concentrate on cleaning up their own house first.

I deleted all the e-mails.

JMO

Reply by 101livescan on 10/10/13 12:25pm
Msg #487633

Re: Yeah - I got this too - note it's for BofA loans only...

All the big boys will follow suit soon. Linda, Chase and Wells Fargo are going to effect the same requirement January 1.

I had a long conversation with the COO of WFG yesterday in Santa Barbara who said it is coming, by first of the year, this is the new standard for all Loan Signing Agents/Notaries who lay eyes on loan documents. Annual background check by the NNA. He is also an attorney and sees all the new lender regulations and compliance rules under reconstruction.

They will be tightening the screws on SS owners and employees as well.

Reply by Stoli on 10/10/13 12:49pm
Msg #487635

While you were chatting with the COO of WFB,

did you take the opportunity to expose the disparity between the lever of security expected from notaries and signing services?

Reply by Stoli on 10/10/13 12:50pm
Msg #487636

Sorry... level not lever

did you take the opportunity to expose the disparity between the level of security expected from notaries and signing services?

Reply by Linda_H/FL on 10/10/13 1:10pm
Msg #487640

You're probably right Cheryl...which means I'm going to

be re-examining my outlook come May/June when my commission expires....

Unless these companies are willing to pay the piper, I'm not going to be doing the dance - increased requirements, increased responsibilities, increased work is going to have to equate to increased fees or it's just not worth it any more.

I'm probably going to start hitting my GNW really hard in the coming months - I might just limit myself to that - like I said in a previous post, it's just not worth the grief to me any more.

Reply by CinOH on 10/10/13 2:00pm
Msg #487642

Re: Yeah - I got this too - note it's for BofA loans only...

I have no problem with background checks or even yearly background checks. But why do they HAVE to be through the NNA? They don't demand that we get E&O via a specific insurance provider or from a particular insurer. So why the emphasis on the NNA background check. They not even the most extensive bgc out there. The local sheriff's department does a much more thorough job. This smacks of collusion to me.

Reply by GOLDGIRL/CA on 10/10/13 3:52pm
Msg #487662

The only reason ...

... they haven't insisted we get E&O through the NNA, is because as hard as it is to believe, the NNA just hasn't thought of that money-raising scheme yet and sold it to TCs and lenders! Don't give them any more ideas!. LOL

Reply by Esther Korn on 10/10/13 5:24pm
Msg #487678

Re: The only reason ...

I agree with CinOH. Why only from NNA????

Reply by CinOH on 10/10/13 5:58pm
Msg #487683

Re: The only reason ...

Esther,
I've received four emails today and several more within the last week or so all saying the same thing, almost verbatim, regarding the NNA background check. No way this is "organic."

Reply by CinOH on 10/10/13 5:52pm
Msg #487681

Re: The only reason ...

LOL. You're probably right.

Reply by Esther Korn on 10/10/13 7:40pm
Msg #487699

Re: The only reason ...

Yea, I have also been getting those emails. The sad thing is that about 2 months ago, I spent $$ on a very comprehensive background check with Lexis Nexis, and now I have to get another one! From NNA no less, which I was trying to avoid at all cost. Very frustrating bc the BGC will be exactly the same as the one I just got. Ugh.

Reply by sigtogo/OR on 10/10/13 9:01pm
Msg #487711

Signature Closers said any provider for BGC.

from their email: "That said, if you want to close a file for us and the lender is Bank of America, then your background check must have been completed within the past year. If it is older than one year, then you can pass on the closing or send us an updated background check (from any search provider)."

I too have gotten the NNA required emails too but Signature Closures doesn't require NNA except for B of A loans. not to say that won't come next though...

Reply by Signature Closers, LLC - Marketing on 12/3/13 1:43pm
Msg #494831

Re: Signature Closers said any provider for BGC.

Hi all,

We are good with any background check as long as it meets and checks on the the following criteria (see below). This was established as best practice by the Signing Professionals Workgroup (see signingprofessionalsworkgroup.org for more information) which includes many of the largest national title companies in the United States (and many of our clients).

Exhibit A

Certified Signing Professional Background Screening

Sources of Data:

Social Security number trace search
County criminal court search (10 years where available)
Statewide criminal search (10 years where available)
Federal criminal search (10 years where available)
Nationwide criminal database (10 years where available)
Motor vehicle records search
-License class
-Current license status
-Infractions or convictions
-Accidents

National sex offender database search (Automatic disqualification for positive match)
USA Patriot Act search (Automatic disqualification for positive match)
-United Nations Named Terrorist List
-Office of Foreign Asset Control (OFAC) Specially Designated Nationals & Blocked Persons
-Bank of England Sanctions
-Department of Defense Trade Controls (DTC) Debarred Parties
-U.S. Bureau of Industry and Security Unverified Entity List
-U.S. Bureau of Industry and Security Denied Entity List