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 Important for NSAs in Illinois, Maryland, So Carolina, Mass
Posted by Laura Vestanen on 11/11/07 5:35am

Copied from message 220613 by Dave Heine of FL.
Other messages in that thread are also helpful.


Ok, you asked how we do closings in Illinois. We can go to our underwriters website and search for title companies/attornies in that area. We can call them and set up closings through them, just like when they have closings in our area we they can call us. Some title companies are picky and want other title companies to do the courtsey closing.

As far as is it an underwriter thing, no, I Illinois, Maryland, South Carolina, and Mass it is set by state laws or in regulations by the Department of Insurance that we can not use notary signing agents or signing services.

Understand that if we choose to skirt the law, and there are those that do that, since the underwriter and the law in particular has set the "practice", not following the guidelines sets me up for "malpractice" and if I have to buy back that loan or laons, I really do not think that A) my underwriter is going to be happy as it sets me up for a title claim, B) the state will more than likely take sanctions against my license (which is reported to all the other states I am licensed in and they will also take some kind of sanction) and last but not least would be C) my e&o carrier will not be happy as they will have to pay the claim, then come after me and also the company for the loss.

So all in all, it is not worth it to lose my licenses over to not follow the directions of my underwriters and the law.

In Illinois, you fall under the Division of Financial Services, and per state la you need to have an independent escrowee license.

This is from the DFS website:

The Act also requires the certification of Independent Escrowees. These independent escrowees receive deposits, in trust, of funds or documents for the purpose of effecting the sale, transfer, encumbrance or lease of property held until the title to the subject property is in prescribed condition.

The state looks at the fact that you receive the DOCUMENTS and therefore fall under the licensure act. This is from an ALTA publication in 2003 and is still relevant in Illinois:

However, the Department of Financial Institutions of the State of Illinois has asserted that signing/notary companies advertising and operating in Illinois must be certified as Independent Escrowees, although at recent date, there were no such Independent Escrowees licensed in Illinois . An Independent Escrowee is defined as a person, other than a title insurer or title insurance agent, which receives deposits in trust of funds or documents for effecting a transfer or encumbrance of real property “to be held by such escrowee until title to the real property that is the subject of the escrow is in prescribed condition.” Several cease and desist orders had been issued against signing companies based on the Department's interpretation of the applicability of the requirements for an Independent Escrowee.
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