As I am reading more and more distressing news about mortgage fraud across the board from realtors, underwriters, and unscrupulous mortgage salespersons, that got me to thinking about what we do as loan signing agents.
In order to be a proficient loan signing agent, one must be proficient at being an educated notary public first. In light of the rise of mortgage fraud that we see permeating throughout the news, this should bring us to the awareness of how we must do our jobs effectively so we don’t get caught up in somebody’s hot bed of mortgage fraud!
Rule #1, we are notary publics first! That means we carefully document each transaction in our journals, diligently verify proper identification to establish identity, complete the notarial certificate flawlessly, and know your state’s notary laws like the back of your hand. As an added measure, why not study up on mortgage rules and regulations. And further, do research on how mortgage fraud is conducted & exposed so that we will know the red flags, especially if we are contacted directly by a buyer or a seller or third party agent to do a closing for them. If you have been doing this for a long time, it is easy to treat each closing as a routine assignment and make the smallest of mistakes that can befall you into a nightmare!
It is my grandest hope that SSs are being diligent and vigilant in their vetting of the orders they take and then pass onto us. Could you imagine the horror that we, the loan signing agent, get caught up in when dealing with a mortgage fraud lawsuit? So, this is not the time to be lax and uneducated as we are notarizing loan documents. We must be astute and on the ball! Crossing all t’s and dotting all i’s!
Be wise. Be diligent. Be professional. Know your state’s notary laws so that we will be clear of any wrongdoings!
Thanks for sharing your awesome insights and pointing out how much mortgage fraud is going up. You covered everything, and new signing agents really need to read this and we all need a refresher on this topic!
Yes, it is getting more attention. Even more disturbing is the requirement to send in copies of two ID’s with the documents as well as scan the whole package back. Do they not trust we are doing our job of IDing the client. Further with the SPWG requirements we need to be BG screened yearly and they request a copy to be sent to them! Where is our assurance that all the employees of these Signing Services are screened, where is my copy of their screening that I am sending sensitive information for them to see? Do we as notaries have a right to confirm they are properly screened and handling the information. If someone’s identity is compromised from a loan package we are the first people who will be held accountable and have no backup showing we sent it to people who are properly cleared. Where are are rights? Who protects us?
Whoa! Notaries verify identities and signatures, not documents, at least in my state. Whether a mortgagor is lying on the application or other documents, or they are being accused of doing so for political motives is not our job to determine. It’s the lender’s job to verify the mortgagor’s information, not ours. We print a package of documents, we don’t generate them.
A notary confirms that the signers are who they claim to be, often by checking a valid government-issued photo ID.
Witness and authenticate signatures:
They act as impartial witnesses to the signing of documents and can certify the authenticity of a signature.
Ensure willingness:
A notary ensures that the individuals are signing the document voluntarily and are aware of its contents, preventing coercion or duress.
Administer oaths and affirmations:
Notaries can legally administer oaths to ensure that individuals are truthfully swearing to the accuracy of their statements.
Take affidavits and acknowledgments:
They can take sworn statements (affidavits) and certify that a signer has acknowledged their signature on a document.
Maintain records:
Notaries are required to keep a detailed journal of all notarizations to create a reliable record of the transaction.
Apply their seal:
After completing the notarial act, the notary affixes their official seal to the document, certifying its authenticity.
When the notary senses or detects anything that runs afoul of these bullet points, the transaction should be halted and caution should be exercised if it becomes necessary to curtail the signing and/or leave the scene. It is NOT our responsibility to do anything more that what is listed above, including fraud detection. Taking on more than is required in this profession is dangerous.
not study up on mortgage rules and regulations. And further, do research on how mortgage fraud is conducted & exposed so that we will know the red flags, especially if we are contacted directly by a buyer or a seller or third party agent to do a closing for them. If you have been doing this for a long time, it is easy to treat each closing as a routine assignment and make the smallest of mistakes that can befall you into a nightmare!
So, this is not the time to be lax and uneducated as we are notarizing loan documents. We must be astute and on the ball! Crossing all t’s and dotting all i’s!
Have a profitable day!!
Absolutely Accurate 
just saw today that Marcy Tiberio is hosting a talk on deed fraud. Here is the link:
Concur 
percent! 
Absolutely! 