When did you all decide it was OKAY to send a notary signing agent to the borrower in lieu of a mortgage originator?
Take a lesson from the title world. It ain’t a good idea.
These so-called “RESPA signings” fly under the radar of licensing and regulators and outside of the normal scope of reps and warranties.
It’s the fast track to cheapening the role of mortgage professionals in the name of economic rationality.
In the title biz, it facilitated entree of remote companies into local markets and disintermediated lots of independent agents. Substitute mortgage brokers and you see what I mean.
Large agents got the brilliant idea that they could save money by firing their closing staff and using NSAs. Substitute mortgage originator and you see what I mean.
Consumers in a closing or mortgage application situation expect a professional who can answer questions and who has significant knowledge.
Now, I know that there are a relatively small percentage of NSAs who have experience and knowledge. I argue that they should decide what business they are in and embrace it. You want to work in the title business? Get a license. You want to work in the mortgage business? Get a license. Step up to the freakin plate like the rest of us.
Sending a body with a notary seal to the door of a consumer is a cheap substitute for a qualified professional.
Real estate agents should keep their eye on this trend as I predict you are next.
Notaries are the human facilitators of commodity style providers. They are inexpensive and they are numerous. It’s the kind of competition you don’t expect. Eyes open.
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{ 7 comments… read them below or add one }
Professionalism costs money and Americans are cheap at times. It goes back to the addage, you get what you pay for.
Unfortunately, those borrowing these days do not even realize how much a mortgage plays into the overall financial plan and how wrong decisions lead to very costly mistakes over time. So, cutting costs where they can may seem logical.
Then again, it could be that those mortgage brokers want these people to handle the closing because they are afaid the truth behind the transaction may come out. Hmmm. Makes you wonder why LOS would use a service that easily reflects negatively on their professionalism.
What really gets me in this new trend to send the notary out to take the mortgage application. There’s nothing to notarize! When does this sinking into the crappiness void ever stop?
It won’t stop until someone loses an eye, or in this case, their home.
Back when I was an LO, I attended every closing except two. They were out of state. I can’t even imagine letting someone else take an app.
Both of these events are too important to the process. Furthermore, they are the prime moments when a loan officer has selling opportunities.
No matter how competent a notory is, they will not “sell” the borrower. They will not ask for referals. They will give them a Best Buy experiance, and nothing more.
Great post Diane
Thanks, Todd.
I agree. Both moments are the stage on which you shine and lay the foundation for future referrals. This is where you demonstrate how great YOU are and afterall, that’s really what YOU are selling.
Presuming you are not a creep or predator, you should WANT to face the consumer and confirm they have the right product and make changes, if necessary. This is where the MEETING OF THE MINDS takes place.
Thank you Diane for allowing me to know what you really think about NSA’s. I’ll be sure to post your blog for all to read on NotRot.
Hi, Desktop: Thank you. I welcome the opportunity to discuss this issue again.
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