Posted by 101livescan on 10/20/13 3:28pm
Msg #488863

Petition to Change How Signing Service Companies/Owners are

vetted and regulated.

This is a draft. If you are interested in signing this petition, please email me at [e-mail address]. If you have any suggestions on how to give it more "teeth", by all means, please jump in. We will all benefit from your input. I do not profess to be the strongest petition innovator on the planet. Your input is welcome.

This petition is being drafted for submission to the State of California Department of Corporation Business Oversight.

There are no standards for this sub industry of signing companies who act as the middle man between notaries and title/escrow companies across the United States. These companies charge, for example, $300 to escrow and title, agree to pay the notary $100 or so, but often keep the entire fee while they go out of business. It is the biggest scam we've witnessed in the area of mortgage fraud.

Unfortunately, unchecked, owners of these companies have criminal backgrounds in the areas of forgery and ID Fraud and assault and battery. One particular company went out of business owing more than 30 notaries $10s of thousands of dollars coast to coast. A huge stack of complaints has been filed with the County of Riverside DA's office by notaries across the US.

Now there is a second signing service in San Diego, who claims to be going bankrupt, however, the company that owes notaries a lot of money isn't even registered as his company, but he left the unpaid notaries holding the bag, claiming he was not paid by title/escrow, hence he cannot pay the notaries.

These are just two examples of companies who've gone out of business this year stiffing notaries all across the country. There have been many before them who fold up their tents, and move across town, operating under another guise, another name, same game.

Notaries are required to pass DOJ/FBI background checking, huge E&O policies to work in this industry. However, the middlemen, the signing companies who contract with Title/Escrow/Lender, are not.

Notaries across the U.S. would like standards to be set by every state in the U.S. Since most of the "deadbeat" signing services are here in California, we'd like the California State Department of Corporate Business Oversight to lead the trend to helping notaries get paid for their services and to set just as rigid requirements for Signing Service Company owners and their employees as exist for notaries. At least two companies I know of, the owners were convicted of crimes that would keep the owners from becoming notaries themselves.

We need to raise the bar on qualifications for signing companies. They are not regulated. They slip through the cracks. There are fewer and fewer reputable signing services across the country. Many of these companies do not have business licenses, FBN filings in their name, valid addresses or have completely dismantled their websites, phones, fax and email addresses, even moved across town to evade collection attempts. Meanwhile, they've spent all the notaries' unpaid fees on luxurious homes, Cancun vacations, breast enhancements, new home furnishings and other frivolity. These owners are so audacious, they post their extravagance on social media sites. It's completely insane.

I believe notaries across the U.S. would be grateful if someone at the State level would step up to the plate and audit, qualify and quantify these companies. Notaries on the east coast trying to collect from defunct companies on the west coast would be happy to know the state of CA has given it's stamp of approval or disapproval, some sort of rating system to know they are legitimate companies. Right now, all we have is our own rating system on notaryrotary.com. It's often too late to collect when a company hasn't paid for 90 days, has dodged calls for weeks, and suddenly announces they are bankrupt owing hundreds of thousands of dollars to notaries.

Reply by leeinla on 10/20/13 3:52pm
Msg #488868

You can use the words "shell game" . Thanks for posting this on NR and for all your efforts in helping notaries.

Reply by HisHughness on 10/20/13 4:25pm
Msg #488875

Any kind of unified effort would be far more productive ...

... than individual notaries b!tching here and on other forums, so I commend you for your efforts. Some comments:

1. There's more than one way to skin a cat. Sometimes, it's best to start with shaving it.

2. The individual notary is under a statutorily mandated duty to protect confidential information of signers (though here in Texas, the restrictions are far less strict). However -- and it is a huge however -- even if an SS operator is a notary, he/she has NO duty to protect information that comes to the SS from another notary. If ID or financial information is included in a notarized document that the SS has to handle, it would appear to be open season on that information as far as a notary's statutory duty is concerned, though there may be other duties that extend to the SS through the lender/TC. Obviously, that obvious breach of confidentiality should concern the SOS.

3. I would focus on that aspect in any petition to the SOS. As evidence for the need for some scrutiny of SS practices, AND ONLY AS EVIDENCE OF THAT, I would mention the bad eggs who have gotten so much exposure here of late (let's all bow to Cheryl) and the many instances of notaries getting stiffed. It is not the role of the SOS to act as our collection agent; it is the role of the SOS to make sure that notary functions are handled appropriately, and characters like those mentioned don't give much confidence that they are handled that way.

4. If you want to address the question of notaries getting stiffed, I would think that whatever state body is concerned with regulating real estate <would> be concerned with that. It stinks up the whole industry to have miscreants operating in a significant area of it. But that should be a second petition, and THAT petition should ram home the message about scammers.

5. I'll be happy to help with any such effort. Will somebody get in touch with Brenda, send her some of Cheryl's coffee, and dragoon her into spearheading an effort in Texas?

Reply by BrendaTx on 10/20/13 9:24pm
Msg #488906

Re: Any kind of unified effort would be far more productive ...

"I'll be happy to help with any such effort. Will somebody get in touch with Brenda, send her some of Cheryl's coffee, and dragoon her into spearheading an effort in Texas?"

Sorry, but I have this little black dog named Harry and he insists that I not take on any kind of activity that does not allow for him to remain front and center. However, I would be interested in the coffee.

Reply by Carmen R Towles on 10/20/13 5:07pm
Msg #488878

Thank you! Excellent...

~C

Reply by Mike Goodey on 10/20/13 6:38pm
Msg #488885

Amen to that ! I'm with you as well as any notary would be....might I say 'deadbeat" being a kind name.

Reply by Darlin_AL on 10/20/13 6:53pm
Msg #488888

ready to sign petition,even if it's not ready.. n/m

Reply by Linda Juenger on 10/20/13 9:09pm
Msg #488904

"There are no standards for this sub industry of signing companies who act as the middle man between notaries and title/escrow companies across the United States. These companies charge, for example, $300 to escrow and title, agree to pay the notary $100 or so, but often keep the entire fee while they go out of business. It is the biggest scam we've witnessed in the area of mortgage fraud."

I think the 1st sentence needs to be edited. The first sentence of the 1st paragraph says "there are no standards for "this" sub industry. What industry?? Who is "This"?? If they don't know anything about it, you need to explain exactly what it is in the first sentence.

Explain right off the bat what a Signing Service is. Then say there are no standards for this industry.

Something like (I am NO writer) help me out here. Escrow and Title Companies across the country are subcontracting to what are called Signing Companies or Signing Services acting as the middle man, which in turn subcontracts out to a Notary to perform the actual witness signature closing of loan documents. Does this make sense?? Then go on to explain what they are doing.

Reply by 101livescan on 10/20/13 9:18pm
Msg #488905

Thank you for your feedback, Linda. Hugh is working on this petition, I've passed the baton to his capable and eloquent word smithing experience and resources.

Reply by sueharke on 10/20/13 10:18pm
Msg #488911

Good to have Hugh involved as he sees the picture from a legal perspective. I may also write something from the accounting perspective and send it to you.

Reply by Christine/OK on 10/21/13 5:49am
Msg #488926

Yes, Sue :D Thank you Cheryl for your efforts & with much

appreciation to Hugh for his support - especially considering all that he is confronted with on a daily basis. Daily we continue to pray/send healing energy to Hugh. XXOO

Reply by Linda Juenger on 10/21/13 7:21am
Msg #488930

Thank you so much n/m

Reply by SharonMN on 10/21/13 11:16am
Msg #488961

Notaries are also essentially unregulated as far as loan signings are concerned. At least in MN, the requirements to hold E&O insurance and to have background checks are set by the title company/lender/signing service, not by law. I would prefer NOT to get the government involved. If you are interested in policing signing services, I would suggest contacting title companies' compliance and/or vendor management departments and encouraging them to beef up their due diligence process before hiring notaries OR signing services.

Reply by Linda_H/FL on 10/21/13 11:21am
Msg #488962

"I would suggest contacting title companies' compliance and/or vendor management departments and encouraging them to beef up their due diligence process before hiring notaries OR signing services."

Or go direct to the notaries and eliminate the questionable middleman...

JMO

Reply by Linda_in_IN on 10/21/13 3:36pm
Msg #488995

Re: Petition -maybe a reference to various states efforts?

I know in Michigan and in Indiana the minimum E&O required by a notary is set by legislation. I would wager these aren't the only states. Would it be appropriate as a point of reference to show notaries have criteria to have some type of "xx% of states require notaries to be bonded, with E&O insurance. Nothing comparable is required for ________________." But then you would also need to consider or reference those entities who are working based on the reputation/commission of a notary.

Reply by Anne McBride on 10/24/13 7:29pm
Msg #489675

Re: Petition -maybe a reference to various states efforts?

I'm in but only if this is rethought and reworded. Sorry it sounds too much like whining and little like facts. A petition must have facts laid out. FYI not all states care. Fact; Mine for instance won't involve itself in my not getting paid. They say call a lawyer. Fact; E&O insurance has nothing to do with this. Fact; the complaint is about requiring the BGC with a certain company which suggest a monopoly and that's against federal law. Fact; requiring a relationship with only XYZ company is against RESPA another federal law. These laws need to be addressed to DOJ. You are climbing stairs to no where. It has to have teeth and has to go to someone with power, DOJ. It can't address state concerns it has to be nationwide.

If you guys are serious and want to do this right and make a difference I'm in. You will only get one shot so it has to be perfect. Then we need to set up a system to let notaries sign it electronically.

Just my 2 cents worth.