Signing Agent Tip: Detailing Loan Documents — What You Can And Cannot Do

 

When Notary Putting your signature on Agents go to the signing desk, they bring hundreds of pages of documents, and borrowers often have questions about them. But there is fine line between what an NSA can and are unable to say, and Servicenummer often gets phone calls asking concerning this.

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



Why Notary Signing Agents Must Not Explain Mortgage Documents As an NSA, you are not qualified or authorized to work in the role of the loan official, escrow agent or similar professional certified to explain loan documents. If debtors have questions, then you should refer these to the getting 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 line in explaining documents, the contracting company will likely not hire you again. If the borrower suffers a reduction therefore of the explanation, they might prosecute you to definitely recover damages.

You might be A Speaker, Not An Advisor The common term used to describe an NSA’s role in the signing is "presenter. " Essentially, you introduce the document to be signed. You will see the title, describe the document, find 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, which document is recorded with the county and is evidence of the lender’s security interest in the property. It contains the name of the debtor, and the title holder of the particular property. Right here is the signature line; please sign your name and enter the current 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 follow a signing screenplay authorized by the contracting company, if one is provided, or you might use The Notary Signing Broker Code of Conduct.

Warning Signs That will You’ve Crossed The queue But how do you avoid traversing 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 banner. You need to avoid offering personal opinions about the format or content of the package, or about the phrases 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 proceed with it or whether it’s in their best interest, should be aimed to the getting company.

To know more details visit here: Legal Signing Agency