Signing Agent Tip: Detailing Loan Documents — What You May And Cannot Perform

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When Notary Signing Agents go to the signing desk, they bring countless pages of documents, and borrowers often have questions about them. But there is fine line between what an NSA can and are not able to say, and Servicenummer often gets phone calls asking about this.

Whilst you may describe loan documents, you are never allowed to make clear how loan documents will affect borrowers. But how can you define "explain, " and how do you know when you have 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 officer, escrow agent or similar professional authorized to make clear loan documents. If borrowers have questions, then you should relate these to the getting company — the title company or signing service that hired you — or 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. In case you cross the queue in explaining documents, the contracting company will likely not hire you again. If the customer suffers a loss therefore of the explanation, they might prosecute you to definitely recover problems.

You might be A Speaker, No Advisor A common term used to describe an NSA’s role in the signing is "presenter. " Essentially, you introduce the document to be signed. You will read the title, explain the document, locate the signature lines and any places for initials.

Regarding 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 desire for the property. It contains the name of the borrower, and the name holder of the particular property. Right here is the signature line; please sign your name and enter nowadays date. "

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

Maintaining the presentation simple protects you from overstepping your role as a Notary Signing Agent. You may wish to follow a signing script authorized by the contracting company, if the first is provided, or you might use The particular Notary Signing Real estate agent 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 their name, or why the document is roofed in the package.

Providing advice is also a red flag. You should avoid offering personal opinions about the format or content of the package, or about the phrases of an agreement. For 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 move forward with it or whether it’s in their best interest, should be focused to the contracting company.

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