#witness #notaryloansigningagent #loansigningagent #TIPIC #mobilenotary #silverspringmd #whiterosenotary #signingservice #escrow #title #lender #attorney #attorneystate #witnessstate
Let's begin by defining a loan signing witness and their role. A witness (in Maryland) is an individual 18 years of age or older with a current government issued photo ID that is a neutral third -party observer to a document signing. Their role is to be present, observe the signer affix their signature on the document and sign their name (sometimes print their address and phone number).
At times, loan signings can require the presence of a witness to execute a deed, mortgage and other documents. States that require witnesses for loan signings are called witness states. They include Connecticut, Georgia, Louisiana, South Carolina and Florida. Recently, Florida removed the witness requirement from mortgages by default. however , lenders can require and print witnesss lines on documents to meet their requirements. Therefore, it is important that Notary Loan Signing Agents (NLSA) NOT assume witnesses are not necessary on a Florida assignment and seek clarification from the hiring party.
The loan signing responsibility may also require coordination with an attorney that actively participates in the loan closing. States that require an attorney to actively participate in real estate loan closings are referred to as attorney states. They include Connecticut, Delaware, Georgia, Kentucky, Massachusetts, New York, South Carolina,Rhode Island, Vermont and West Virginia. The attorney may be present in-person, by phone or by means of audio visual communication. Their presence is to ensure that the transaction is being completed within state laws as well as to explain the documents/answer the signer's questions.
The training to effectively fulfill the NLSA responsibilities varies. In some states, the NLSA holds a commission, while in other states they hold both a commission and a Title Insurance Producer Independent Contractor (TIPIC) License. The TIPIC license is an advanced level of training/responsibility and is a requirement in Maryland, Montana and Indiana. NLSAs already have a huge responsbility to properly execute loan documents that meet the needs of signers, lenders, the hiring party and state notary laws. When you combine those duties with the responsibility of coordinating a witness or two, the responsibility level goes from huge to ENORMOUS!
Now, let's back up a bit and look at 2 of many possible witness scenarios. First scenario: the NLSA receives a loan signing order confirmation for the job which clearly indicates that a witness is required. Oftentimes, the assignment fee includes a fee for the witness. It then becomes the responsibility of the NLSA to find a witness, ensure that they arrive/witness the signature(s) and provide payment to the witness at the completion of the signing. Overall, the workload and responsibility of the NLSA has increased without any specific payment for the service of securing the witness. If the witness does not/cannot show up and the signing is not fully executed, the responsibility may fall on the shoulders of the NLSA (That's an issue!). Second scenario: Documents arrive to the NLSA "late" relative to the scheduled signing appointment (also known as a last minute/ASAP signing). Whether the NLSA can print from their vehicle or print quickly at home and run to the appointment, the document details may not be checked until the actual presentation to the signer(s) at the table. If witness lines are noticed at that time, a stressful scramble may erupt to identify willing/qualified witnesses within the vicinity of the signing appointment. ( Bear in mind that the NSA may have previously scheduled other appointments after that one). When last minute witnesses are not available, the next option is to contact the hiring party for directives to resolve the situation. This alternative could potentially delay the signing/loan closing as well as cause a back up in the NLSAs schedule. Both scenarios 1 and 2 produce unnecessary stress, and, I would argue, uncertainty in the loan signing process.
How best to coordinate witness requirements for a loan signing? In my perfect world mind, one solution and preventive step is to have 2 Notaries assigned to the order that requires witness signature(s). One Notary can be assigned as the NLSA and the other as a Notary witness. Another option is to have the hiring party contact the signers before assigning the NLSA (if the need for witness is evident) to confirm availability of qualified witnesses for the appointment. In the scenario where the hiring party was not aware that a witness was needed until the signing was underway, they may be able to tap into their Notary portfolio and hire a Notary in the vicinity as a witness. I like the solution of using 2 Notaries because thay are both professionals with Errors and Omissions Insurance ( E and O insurance), and can be held accountable as well as paid accordingly by the hiring party for their services. Again, when the hiring party is a signing service, they likely have access to "many"notaries in the area that can be hired for the witness assignment.
I have successfully completed loan signings with this arrangement by making every effort to execute the documents requiring a witness early during the signing-as agreeable to the signers(s)- so that the Notary witness can be excused from the signing. This ensures that the wirness is only privy to the signing data that they need to have access to. This arrangement is an overall win-win situation. It increases peace of mind for the hiring party/signer(s)/lender/title and escrow partners by knowning that all parties have been assigned to properly execute the signing. Also, the stress level of the assigned NLSA is substantially reduced which gives them more accessible neurons to focus on a perfect signing with great customer service. 😊
As I think deeper about this, I wonder if the challenge is that platform infrastructures do not exist to submit loan signing orders with 2 Notaries assigned. It seems reasonable that hiring parties that use platforms to assign Notaries are experienceing unnecessary stress and uncertainty without this or a similar solution to meet witness requirements. Finally, i am not aware of options for signing services to place 2 Notary requests per order on signing platforms. If it does not exist, I think it would be a huge improvement to help ALL participants execute these loan sigings and to improve customer service to all participants in the transaction. It also may open the door for another specialty role on signing platforms for Notaries: witness. What are your thoughts on the topic? Let me know...
Article submitted with constructive intent by:
Felecia B Bass, Notary Public, LSA-TIPIC, CNTDA, RON
White Rose Notary Services LLC
Silver Spring MD www.whiterosenotary.com
Serving #20901, #20902, #20903, #20904, #20905, #20905, #20910, #20912 , #20704 , #20705 , #20740 , #20783 , #20866 , #20724 , #20723 and surrounding areas
References:
Palm Beach Bar: https://www.palmbeachbar.org/wp-content/uploads/2023/10/Witness-Address-Requirements-Updated.pdf
White Rose Notary Services LLC: https://www.whiterosenotary.com/post/the-maryland-tipic-nsa
White Rose Notary Services LLC: https://www.whiterosenotary.com/post/tips-and-tipics
National Notary Association: https://www.nationalnotary.org/notary-bulletin/blog/2017/10/nsa-tip-signature-witnesses-why-when#:~:text=Be%20Prepared%20to%20Handle%20the%20Situation&text=If%20you're%20unsure%20if,witnesses%20to%20attend%20the%20signing.
National Notary Association: https://www.nationalnotary.org/knowledge-center/signing-agent-resources/state-restrictions
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