Chapter 10

"Certification" programs and do you know

how to introduce the normal loan documents?

First of all, I cannot blame a new notary signing agent for wanting to get into a certification program.  However, really, most of them mean nothing in the big picture.  If you know your notary public rules, then learn the function of each document you can perhaps forego the expensive classes.

The big deal on certification, as best as I can recall,  seems to be

-do you know that you must emphasize to the signer that they must sign the document (a) like they usually sign their name or (b) Exactly as printed?  NATURALLY, the correct answer is printed. Why?  Because some county recorders will not record the document if they see the wrong name on the signature.

-do you know which documents the non-borrowing spouse usually signs? The answer to that is the Mortgage or Deed of Trust, the Notice of Right to Cancel, the Truth in Lending.  Sometimes the Limited Power of Attorney and the Compliance Agreement, plus the various title documents.

-do you know how to count the three-day rescission period?  The answer is to count weekdays, Saturdays, skip Sundays and any holiday.  NotaryRotary.com has a good rescission calendar.  You can always refer to a calendar like this one to assure yourself you are on the right track.

-do you know when there is no Notice of Right to Cancel? My experience has been that there is no Notice of Right to Cancel in a package of documents tied to a purchase, or to an investment property.

-do you know how to sign a package when attorney-in-fact is used?  That means a Power of Attorney has been signed allowing someone else to sign for one of the signers.  What you'll need to do is make sure you know how title desires it to be done.  The way I do it is to have the attorney-in-fact (the one appearing before me) to sign

Joe M Jones, by his attorney -in -fact, Janice Jones

or

Janice Jones, attorney -in -fact, for Joe M. Jones

However, you also need to refer to your notary rules to double-check how you need to word your notary certificate!

You'll need to study the function of each loan document in order to really get comfortable with your job as a notary signing agent. 

I am going to go through a few key documents in a package of loan documents and tell you what I say. If you study this, you might learn as much as you would from a certification program.

At the end of each document title, you should mentally "hear" me say, "when you are finished reviewing this document, please sign as your name is printed (and date, if necessary)."

[Please note: The mortgage/deed of trust and the note are different in a reverse mortgage. These introductions will not work. If you want to purchase my book of notes on a reverse mortgage, you can do so here: http://texnotary.com/package.htm .]

HUD 1 SETTLEMENT STATEMENT
"This document tells you all the costs of your loan."

[If they do not grab and sign, I personally recognize they are overwhelmed by the document. I then turn the document upside down, start with the right hand column, or the second page, depending on which has the list of closing expenses. I point with my pen and read each line to them aloud. Once I reach the end of the list, it gives a total, bring that total back up to the top of the left hand column, go down that list by READING, not explaining, and that is that. If there are problems this will give the first glimpse into them.]

NOTICE OF RIGHT TO CANCEL
"This is to notify you that you have from today and over the next three business days to change your mind about all the documents you sign today."

NOTE
"This is the note. Here is the amount of your loan, it is for ___ months, or ___ years, here is the interest rate" [And, I turn the document upside down to face them and point to these things using a capped pen. Please notice that this is the way I introduce a fixed rate loan note. An adjustable rate note is different. Get your hands on a form for an adjustable rate note and study it. You might find one at http://efanniemae.com ]

MORTGAGE OR DEED OF TRUST
"This is the Deed of Trust (or Mortgage). This is the document commonly filed at the courthouse to indicate that your lender has an interest in this property."

TRUTH IN LENDING
"Here is the truth in lending statement." [If they fixate on the APR box of it, I suggest they read the statement regarding the same which is included with this page of documents. If that doesn't do it, I say, "the APR rate would be the same as your note rate if there were zero closing costs." If that doesn't do it, I say, "This amount has nothing to do with the rate of interest on your note. It includes all or a portion of the amount of closing costs you are paying in on your loan amortized over the life of your loan." If that doesn't do it, call the loan officer, or other emergency number in your packet.

Okay, that's the end of my personal introduction of documents. You can also refer to a short list of explanations which are located here at the website of a Texas signing service I will work for because they are good about paying notaries a worthwhile amount: NB Signing - http://www.nbsigning.com/dwnlds.htm

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