Man concentrating on paper

Significance of Public Notary/Loan Signing

Significance of Public Notary/Loan Signing

Notaries witness signatures, and the fee they charge is determined by how many signatures they see. A loan signing agent is someone who not only witnesses signatures but also is familiar with the process of guiding a borrower through it.

A typical package of loan paperwork has anywhere between 100 and 150 pages total, all of which need to have signatures, initials, and dates affixed to them in the relevant places. A Loan Signing Agent (LSA) is familiar with all of the areas of the loan documentation on which the borrower is required to sign, date, and initial.

That is the primary distinction between a loan signing agent and a conventional public notary. A loan signing agent does not charge by the signature as a notary public does; instead, a loan signing agent charges a fixed price of $75 to $200 for their SKILL of understanding how to conduct a loan signing a notary public charges by the signature.

Why must a loan signing agent be a notary?

Because on average, three to five pages of the one hundred page set of loan documents will need a notary acknowledgment, which is something that can only be carried out by a notary public who has been duly commissioned. To reiterate, any fees will not be associated with having those signatures notarized.

Instead, you charge a set cost for the loan signing agent from $75 to $200. The appealing aspect of working as a loan signing agent is that this one does not need a specialized license in contrast to careers as real estate agents, appraisers, or mortgage officers. A valid notary commission is essential.

In most jurisdictions, becoming a notary public involves applying to the Secretary of State. The only further criterion necessary in the few states left is passing a quick exam and attending a training session. Then, after you have obtained your commission as a notary, all you will want are the necessary notary supplies and the expertise on how to guide a borrower through a collection of loan paperwork.

Notaries and loan signers' responsibilities

However, not all notaries work as loan signing agents. Signing agents are required to be notaries public. The responsibility of an LSA is, one must get additional certification and complete training. Since the notary’s activity area is somewhat constrained, they are responsible for stamping various documents.

On the other hand, LSAs are educated to handle the processing of loan papers. Because the mortgage and financial services sectors often include more complex and sensitive transactions, the experience of an LSA may be quite helpful in these contexts. LSAs are not permitted to provide legal advice, explanation of words, or interpretation of the papers they help with, in the same way as notaries are not allowed to do so.

They are only brought in during the closing phases of the loan to help with the processing and management of the documents. And since LSAs have access to the sensitive financial information of borrowers, they are subjected to yearly background checks as a condition of their employment.

This measure prevents mortgage fraud, and customers’ information is protected. In addition to these routine checks of their backgrounds, LSAs undergo extensive training to learn how to handle loan document bundles. To do this, loan paperwork needs to be printed appropriately, a postal service must be used to return signed documents, and any further instructions provided by the lender or title firm must be adhered to.

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