Updated 10-16-23. Many people — including Notaries — often have mistaken ideas about what a Notary Signing Agent is and what they can and cannot do. Here are 4 common misconceptions, along with facts to clear up any misunderstandings.
1. Misconception: Notary Signing Agents are just Notaries
Fact: Notary Signing Agents perform several additional non-notarial duties in addition to notarizing signatures on loan documents. A Signing Agent must print the loan document package for signing by the borrower and leave a second set with the borrower, make sure the borrower signs and initials non-notarized documents in a loan document package and deliver the completed loan package to the lender or title company.
2. Misconception: Notary Signing Agents can operate unrestricted everywhere
Fact: Notary Signing Agents must hold additional qualifications in some states and face restrictions in others. For example, Indiana and Maryland require Signing Agents to hold a title insurance producer license in order to conduct loan closings. Nebraska prohibits Notaries from charging ancillary fees such as courier fees. Other states, such as Delaware, Georgia, South Carolina and Vermont, require closings to be conducted by an attorney.
3. Misconception: A Notary commission is all you need to be a Notary Signing Agent
Fact: While a Notary commission is required to be a Signing Agent, most companies require Signing Agents they hire to undergo a background screening because they routinely conduct loan signings in borrowers’ homes and handle borrowers’ personal financial information. Companies may also require Signing Agents to take additional training as well.
4. Misconception: Signing Agents are subject only to state Notary laws
Fact: As third-party service providers for mortgage lenders and title companies, Signing Agents also must comply with the same federal privacy rules that lenders and title companies must follow, including but not limited to the Gramm-Leach-Bliley Act, the Truth In Lending Act and the USA PATRIOT Act.
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