They are lowering their fees to signing services. You may know them by the name “middlemen”.There is nothing inherently wrong with middleman. It’s just that escrow companies have made the decision that they are not worth the money that they have been paid, That does not mean that the Notary is worth less.The fee reduction is to the signing service, not the notary. I wouldn’t accept a lower fee because of this reasoning.
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I would like to add another perspective to this conversation. Escrow / Title Companies get their business from lenders (banks, credit union, etc.). Those financial institutions are always looking to lower their fees to be more and more competitive. I retired a few years ago from a $5.0 billion credit union, where we on an annual basis bid out our title / escrow business. One of the areas that I saw fees being reduced were in the Notary Fees; used to charge clients $250 or more for a closing. Those were slowly lowered down to $150.00 or less by the escrow companies to keep the business and allow us to remain competitive against the big banks.
I’m not defending escrow / title companies - rather providing more insight behind why they lower their fees, then the Signing Companies have to offer a lower rate for the signing. Unfortunately I do not see this getting better, and when RON becomes widespread would not be surprised to see fees lowered even more.
Thank you for that viewpoint - but what comes to mind is…looks like the middleman should be eliminated and title/escrow should deal direct with the notary to fairly compensate them
And I agree with you about the effect RON will have on fees - and believe it will have a detrimental impact on the NSA field as a whole.
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We are notary exempt. My first year as a notary I filed my tax return myself and found this tax break for myself. It didn’t go through the first time and I got a letter from the IRS. I then copied the part of the tax code that said we are exempt and included it in the letter. The next two years I filed I went with a professional tax preparer and have so far been using the Notary Exempt on payroll taxes.
Hi Angela, Sorry I missed your comment. Things have changed very much since the climate in 2018, even now while I am on hiatus, there are still daily offers to take signings. Are you still offering notary services? I would like to know how you get jobs where you don’t have to print? I am usually requested to print double copies of everything and the wear and tear and constant needing to keep up on toner and paper is just rolled in with all the other stresses about accuracy and shipping deadlines.
Payroll taxes and Self-Employment taxes are two different things. I can’t speak to you having to pay “payroll taxes” at all - but I can tell you that all that is exempt from SE tax is that portion of your fee that can be attributed to the state-mandated fee you can charge for notarial acts …
So, for example, in Florida, we can charge $10/notarization. If I do a signing for $100 and there are 6 notarizations, $60 is exempt from self-employment tax but the entire $100 is taxable income subject to any deductions and credits.
By taking that exemption though, keep in mind you are shorting yourself - the SE tax is what is normally deducted from your paycheck, and matched by the employer, in a regular job - this effects your social security earning and subsequent benefits, including any disability you may be entitled to (you in the general, not you specifically, but each person).
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Read your post @LindaH-FL as I’m preparing docs for 2020 tax filings. Thank you for contributing as much as you do. I learn so much from you.
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I have also currently suspended my business due to the coronavirus and underlying health issues within my family. I am fortunate to have other resources.
As for the jobs where you don’t print, it’s referred to as “general” notary work. Notaries are needed for lots of documents, such as power of attorneys, various property deeds, business affidavits, trust signings, DMV paperwork, divorce paperwork, etc. My direct clients provide the documents and I am just notarizing. In California, it’s $15 for each notarized signature, so along with your travel fees, it can be worthwhile. For 3rd party work, in addition to my regular fees, I charge for extra time, mailing, and printing.
General notary work is similar to loan signing work in that you have to build a reputation and clientele over time. I just prefer this type of work, but it doesn’t mean it’s easier or doesn’t have it’s drawbacks. Accuracy is of the utmost importance when notarizing client’s “original” documents. Issues with signing “capacity” happens more often when you are the only contact. You may encounter more sick or disabled people, especially if you work at hospitals, nursing homes and retirement centers. Only you can decide which type of work suits you. Maybe a combination of both?
Hope this helps.
I don’t see this as a RESPA issue, just the way the business has evolved. Title & Escrow Companies used to have their own Loan Signing Notaries. Then without enough business at times they went to having them work on a per loan basis. Then along came what I will call the “wholesalers” who tell escrows pay me the $125 you charge the client and I will get you a Loan Signing Notary any day to time you need it. So the title / escrow companies now ship their work to the wholesales such as C2C, who now takes a cut off the $125 to cover their operations costs and pays Notaries $75.00 for each loan. The real problem lies is that we started to accept $75.00 instead of insisting on $100 or better. I have seen instances where when the Signing Company is desperate or last minute they can go up to $100, $125, or even $150. Even if they lose on one loan signing, they make it up on the 100’s of others they broker out. Not defending them - simply the economics of how the business runs. When I work directly with my Escrow Officer i get the full fee if I am slow or the offer is really close to home I might take a $75 from C@C just because its close and I have nothing else going on.