SECTION 12: Typical Loan Signing Process

When a Notary Signing Agent goes to a loan signing, the NSA must appear professional and courteous to the borrower. You can rest assured that anything other than professionalism will be reported to your clients (i.e., lenders, signing services) and will affect any future signings you may be asked to perform.

Earlier we spoke about those situations in which the client will send the Signing Agent the documentation and request that the Notary contact the borrower to confirm the appointment. This enables the Signing Agent direct contact with the borrower/signer to not only confirm the appointment, but to go over the closing procedures so that the signer will know what to expect.

Be on time – nothing starts an appointment off on the wrong foot easier than showing up late. Being late to an appointment is a good way to show the borrower and your client that you feel that your time is more valuable than theirs.

When you arrive, look for close parking, but do not park in the borrower's driveway or other unacceptable area. Park on the street (or in a designated parking lot) and walk up to the door using the walkway and ring the doorbell.

When the borrower answers the door, introduce yourself by giving your name and the purpose of your visit (they will be expecting you, so this first introduction should be very short and easy). You've probably already spoken with them on the phone, so you're just adding a face to a name for them.

Let the borrower lead you to the area in which to conduct the signing. If appropriate, you might suggest the use of a table (such as in the kitchen) as a good place to set up. While you are setting up, ask the borrower to produce his/her form of identification that will be used for the signings.

After you have set up, look at the identification that the borrower produced and verify its legitimacy. Do not hand it back, but keep it available by setting it aside on the table. Don't let it get mixed in with the documents, but keep it close at hand. Open your journal and place it by the borrower's identification.

Explain to the borrower that your purpose is to witness his/her signature and administer any oaths or affirmations that are necessary to notarize the documents pertinent to the loan. Hand the borrower a pen (an extra that you have brought with you) and ask him/her to sign exactly as the name appears on the documents.

Go over each individual document pointing out key facts only. Let the borrower know that if any additional questions arise regarding the contents of the documents themselves, the borrower can contact the lender at anytime. Make sure the borrower signs where appropriate, as appropriate (exactly as the name appears), and initials where appropriate, as appropriate (with the same initials as the name appears). Complete the notary journal accordingly.

Sometimes the borrower must provide copies of certain supporting documents that the NSA must include with the loan document package and return to the lender. If you had prior contact with the borrower before the loan signing appointment, you would've taken the opportunity to discuss this requirement, in essence reminding the borrower of his/her responsibility to provide the photocopies of the required documents.

If the borrower has forgotten in the interim to make the photocopies, you must let the borrower know that if you take the originals, you cannot guarantee their safe return. Perhaps the borrower can have a non-signer go to the nearest copy center and make the necessary copies while you and the borrower continue with the rest of the signing; or you may follow the borrower to the nearest copy center and take the copies with you at the end of the appointment.

Before closing the appointment, take a few moments to go over the documents once again to ensure that all documents have been signed and executed properly. Once you are satisfied that all is in order, present the borrower with his/her copies of the loan documents and return the identification handed to you at the beginning of the appointment.

(Borrower's copies are not signed or notarized. They are usually included in the loan package for the NSA to leave with the borrower at the conclusion of the appointment upon the Notary's departure. Do not give the borrower the copies at the beginning of the appointment – wait until the appointment is at its end. This way, they remain totally separate and do not get mixed in with the originals by accident and do not cause a distraction.

If the borrower's copies are missing, you should contact the lender or signing service immediately. If you are requested to make copies for the borrower, you should expect to be reimbursed. Sometimes the lender will ask you to tell the borrower that his or her copies will be sent under separate cover.)

Make sure to pack up all of the signed documents in an orderly manner and thank the borrower for his/her time.

When you get back to your car, call the lender or signing service giving them status of the completion and any information applicable to the return of the documents.

Summarizing The Process

• A borrower requests a loan;
• The lender approves the borrower's request;
• The lender prepares the loan documents and contacts a signing service to request a Notary Signing Agent (or the lender contacts an NSA directly); and the signing service contacts a Notary Signing Agent (remember, if they can't reach you, they will contact another agent on their list);
• The company faxes an appointment confirmation sheet to the NSA (if an appointment has been scheduled, the details will be listed; or the NSA may be requested to contact the borrower and set up the appointment);
• The NSA contacts the borrower and either sets up the appointment or confirms the pre-set appointment;
• The NSA contacts the signing service or the lender to confirm the appointment time;
• The company sends the NSA the loan documents (typically either by fax, email or messenger service);
• The NSA scans the documents to make sure all is in order and complete;
• The NSA affixes signature tabs where applicable;
• The borrower and the NSA meet at the intended appointment;
• The NSA establishes the borrower's identity;
• The NSA goes over the documents with the borrower, pointing out a few key facts (only those facts that are printed in the documents, such as the term of the loan, the interest rate, the monthly payments, length of the loan, etc.);
• The NSA witnesses the document signing and initials where appropriate (making sure all names are signed exactly as they appear on the document and dates are written correctly);
• The NSA completes the notary journal;
• The NSA re-scans the document for completion;
• After leaving the appointment, the NSA calls the company to relay a status report and to provide the tracking number for the returning documents;
• The NSA drops the completed loan package off at the nearest drop-off box on the way to the next appointment, or at the end of the day, or through whatever means previously agreed upon; and
• At the end of the day, the NSA prepares the appropriate billing invoices, completes the mileage log and any other recordkeeping.

Invoicing

In the Loan Signing Agreement example provided earlier, you can see how the form itself serves as the Notary's invoice. The Notary Signing Agent completes the form according to instructions.

Many companies prefer that the NSA invoice the company directly. Some prefer an invoice on a per signing basis and others prefer monthly invoicing.

Many computer software programs contain invoice templates that can be customized to suit your needs and your client's needs. These are very useful as they allow electronic transmission of invoices, rather than dealing with paper invoices. Whatever type of invoice you choose to use, make sure that it is acceptable to your client and that it provides the information required in properly identifying the transaction.

When In Doubt…Ask, Ask, Ask

Never be hesitant to call the lender or signing company you are working with if you have any questions whatsoever. I guarantee you, they would rather have you call and ask than to make a mistake. Mistakes cost everyone time and money and jobs. If you continually make mistakes, the company will not want to use your services. If you're working for a lender, they will no longer call you and you'll lose jobs. If you're working for a signing service, you'll lose jobs because your mistakes reflect on them. So, in the eyes of the lender, it's the signing company who has made the mistake. The lender will stop using the signing company and the signing company will stop using you.

But remember - be smart in your inquiries. Don't "bug" the company to death and don't continually ask the same questions. Always be professional. If you're unfamiliar with a particular document you can call the company and say, "I'm sorry to bother you with this, but there is a document included in this package that I am not familiar with. I need to discuss it with you so that I'm sure not to make any mistakes." Now that is something they will appreciate. A verbal exchange such as this shows you are conscientious and on top of the task.

When the lender or signing company hires you to perform a signing, they will tell you when to expect the documents. If you do not receive the documents at the time they gave you, don't just "assume" that they're just a little late. Call the company and tell them that the package did not arrive as expected. Remember that you're dealing in a market where interest rates fluctuate every day. One day can make the difference in every document's statistics.

If you cannot make an appointment, you must notify the company immediately. This, too, can make or break a successful loan transaction. The company will have to find a replacement for your services – not always an easy task at the last minute; hence the reason why Notary Signing Agents make more money for last minute signings.