Putting your signature on Agent Tip: Explaining Loan Documents — What You Can And Cannot Perform

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When Notary Putting your signature on Agents go to the signing desk, they bring hundreds of pages of documents, and borrowers frequently have questions about them. But there is fine line between what an NSA can and cannot say, and Hotline often gets phone calls asking concerning this.

While you may explain loan documents, you are never allowed to make clear how loan documents will affect borrowers. Yet how can you define "explain, " and how do you know if you’ve crossed the line?



Why Notary Signing Agents Should Not Explain Mortgage Documents As an NSA, you are not qualified or authorized to act in the role of the loan official, escrow agent or similar professional certified to describe loan documents. If debtors have questions, then you should relate these to the contracting company — the title company or signing service that hired you — in order to their lender.

Contracting companies want to ensure NSAs do not misdirect the borrower, or worse, create a legal liability for the contracting company or lender. When you cross the queue in explaining documents, the contracting company will likely not hire you again. If the borrower suffers a reduction because of this of the reason, they might sue you to definitely recover problems.

You happen to be A Presenter, No Advisor The common term used to describe an NSA’s role in the signing is "presenter. " Basically, you introduce the document to be signed. You will browse the title, explain the document, locate the signature outlines and any places for initials.

For example, if you are presenting a deed of trust, you might say: "This is a deed of trust, and this document is recorded with the county and is evidence of the lender’s security fascination with the property. This contains the name of the debtor, and the name holder of the particular property. This is actually the signature line; please sign your name and enter nowadays date. "

You can also go through a loan package with a signer by presenting multiple documents, and pointing away places to indication and initial, as discussed above.

Maintaining the presentation simple protects you from overstepping your role as a Notary Signing Agent. A person may wish to stick to signing software authorized by the contracting company, if you are provided, or you might use The particular Notary Signing Broker Code of Carry out.

Warning Signs That will You’ve Crossed The queue But how do you avoid bridging a line to giving inappropriate advice? Avoid discussing information such as how an interest rate was calculated, how the signer should sign his or her name, or why the document is roofed in the package.

Providing advice is also a red banner. You should avoid offering personal opinions about the format or content of the package, or about the words of an agreement. Regarding example, do not tell a signer you think home loan seems too high, even if questioned.

Any questions the signer has about the transaction, whether they should continue with it or whether it’s in their best interest, should be aimed to the getting company.

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