|Ms. Turner, the long-timers here see the problem, but you're not familiar with the way it is done in TX.|
If you are a TX SA and you get an A6 HE loan from a SS or TC, you have to find a local (to bwrs) title company (or atty office) in which to meet them. You call around and locate one. It's not easy.
The TX SA must front $25-$50 to rent the room. The SS and TC have to cover that and pay it to the notary when the notary is paid.
The hiring party has nothing to do with the local TC from which the room is rented. The notary has to provide the name of a title company and an address where the closing will take place.
The notary is trusted to handle it. End of Story. The notary was busted because the title co. on the part of the hiring party or an auditor was auditing. Or maybe the homeowner squealed.
The notary obviously pocketed the extra few dollars, met the signers somewhere other than a TC, atty office, or lender's branch.