Notary News & Notes: Oct 2006
We have a couple important things to go over this month.
The unauthorized practice of law: What is it and how does it affect you? Recently, we have been reminded of the seriousness of this issue. Two NC agents we are aware of are being investigated for the alleged "unauthorized practice of law". What did they do? Well, more than likely, they spoke more than they should have at the closing. They either "spoke" or "pointed out" terms, rates, payments, fee's etc. By pointing out key provisions of the loan, the agent is essentially 'practicing law without a license" in the eyes of the NC State Bar. What can you say? How should you present documents? The answer is very simply. The only thing a non-lawyer can say to the borrower is the title of the document they are being presented with to sign. In other words, the agent can say the following:
- About the Settlement Statement: "This is the settlement statement, please review and sign at the bottom"
- About the Note: "This is the Note, please review and sign at the bottom"
You are there to have the documents signed, witnessed, executed and notarized - nothing else. NC law is very clear on this. See our website for the specifics of the ethics opinion adopted by the NC State Bar. So there will be no surprises at the time of the loan signing, please explain your role when confirming the appointment time with the borrowers over the phone. You may want to say something like this:
“I am a subcontractor for this company and my role will be to show you where to sign and how to sign each document so they are executed properly. I will also need to see valid photo identification from each person signing the loan documents showing the same name as appears on the documents. Since I am not an attorney, I will not be able to go over the terms of the loan with you. But if you should have any questions during the loan signing we can get in touch with your loan officer to answer those questions”.
Remember one thing when you sit down to close a loan: Imagine that the borrower sitting there next to you is an attorney (which he/she may very well be) and conduct yourself accordingly.
American Title/Wells Fargo docs: Many of you have seen where American Title documents are listing you, the agent, as the settlement agent on the hud as well as the "Preparer" on the DOT. We are working with ATI to correct this but it is taking more time than we anticipated. If you receive Wells Fargo (ATI docs), carefully check the DOT, page 1. If it lists your name under 'PREPARED BY', strike thru your name/address and initial it. Likewise, do the same thing on any document contained in the package that lists you as a "settlement agent or attorney".
More on American Title: Confirm receipt of docs for ATI orders. We have to provide a daily report every morning telling ATI what docs are still undelivered.
Text messaging: Please advise if you have text messaging capability on your cell phone and would like to receive scheduling requests this way. We would need your text address which you can get from your carrier. For example, if you have Verizon as your carrier, your address would be YOURPHONENUMBER@vtext.com.
ILS and the certification of ID form: Make sure these are returned in each package. We are seeing an increased # of returns from ILS for no Cert of ID form being completed/returned.
Shipping costs due to errors: Errors/omissions on the notary's part that requires overnight delivery of docs back and forth will need to be paid for by the notary. In the past, SCI has absorbed those costs or taken 1/2 of the charges and deducted 1/2 from the notary fee.
Citibank conditions: Please make sure when reviewing conditions on Citibank loans that if there is a condition for ALIEN ID CARDS, that they are copied and brought to the closing to return with package. Employment authorization cards are not accepted in lieu of alien id cards.
Edoc printing: Call SCI immediately if there are issues with edocs access, retrieval or printing. Do not wait until closing time or after appt to let us know there are issues with printing.
Reporting closing status: We will no longer continue to use signing agents who do not confirm status on closings promptly. There are too many ways in which you can let us know of closing status in a reasonable timeframe. Tracking information on the packages is required. Secure UPS/FedEx/DHL shipping bills ahead of time in your agent supplies so that you know what the tracking # will be for your return docs.
Please email us for rate information.
Signing Carolina, Inc.
3220 Rockingham Road, High Point, NC 27265
Phone: 336.992.3304 Fax: 800.930.0554
Member of the National Notary Association