Notarizing Mortgage Documents: The California Notary's Role

A real estate notary plays a critical role in the mortgage closing process, acting as an impartial witness during document signings. They ensure that all loan documents are properly executed and that the paperwork is correctly filed. To excel in this role, a notary must undergo rigorous training and adhere to ethical conduct regulations. They also help prevent fraud by verifying identities and authenticating signatures on legal documents. Notarization can add a layer of verification to important documents, such as the Truth in Lending Act (TILA) Disclosure, Loan Estimate and Closing Disclosure, and Compliance Agreement. When choosing a notary for mortgage closings, buyers typically have the option of selecting their own notary signing agent, using a lender-affiliated notary, or opting for an online notarization platform.

Notary Signing Agents (NSA)

A Notary Signing Agent (NSA) is a notary public who specializes in loan signings and is specifically trained in the facilitation of mortgage loan documents. They have a greater understanding of the documents and the wording used in loans, and can therefore ensure that the process runs smoothly and that there is less risk of error.

To become a Notary Signing Agent, one must first be commissioned as a notary public. After this, they can choose to undergo additional training in mortgage loans. This training is rigorous and specific to real estate industry standards, coupled with strict adherence to ethical conduct regulations set by state law enforcement agencies. Notary Signing Agents must also be knowledgeable about their state's notary laws and any applicable federal laws.

NSAs are responsible for printing loan documents, witnessing and verifying the loan signing, and then sending the signed, notarized documents to the lender, title company, or relevant party. They also play an important role in preventing real estate fraud by verifying the identities of the signers and confirming that the borrower is acting of their own free will and understands the contents of the documents they are signing. The signature of a Notary Signing Agent assures that there was no fraud or duress during the transaction.

Notary Signing Agents can charge more for their services than a stationary notary public due to the convenience of traveling to the client's location.

Online notarization

To use online notarization for mortgage documents, individuals can upload their documents, verify their identities, and connect with a certified notary through secure video conferencing. This process ensures that all parties involved are who they say they are and helps prevent fraud. It is important to note that Remote Online Notarization (RON) may not be available for real estate transactions in all states, so individuals should check their local legislation before opting for RON services.

When choosing an online notary service, it is essential to consider their experience and expertise in handling mortgage loan documents. Notary Signing Agents (NSAs) are notaries who specialize in loan signings and have a greater understanding of mortgage loan documents. They undergo additional training in mortgage loans, which reduces the risk of errors during the notarization process.

Additionally, individuals should be mindful of potential costs associated with online notarization. While online platforms offer convenience and flexibility, mobile notaries who travel to the client's location may charge higher fees than stationary notaries. These charges may vary depending on the state and the complexity of the services required.

Overall, online notarization provides a seamless and accessible option for individuals seeking to notarize their mortgage documents. With its user-friendly interface, round-the-clock availability, and secure video conferencing, online notarization streamlines the process of finalizing sensitive and crucial mortgage loan paperwork.

Mortgage notary's role

A mortgage notary, also known as a notary public or loan signing agent, is a crucial player in the real estate transaction process. They are responsible for verifying the identities of signers and ensuring that they are signing documents of their own free will and without coercion. This process is known as Remote Online Notarization (RON) and is not available for real estate transactions in every state.

Mortgage notaries act as impartial witnesses during document signings, ensuring that all parties involved are who they say they are and understand what they are signing. They also help prevent fraud by verifying the authenticity of signatures on legal documents and ensuring that paperwork is executed and filed correctly. In addition, they review requests from title companies, guide buyers through loan documents, and stamp their official seal on signed papers.

Mortgage notaries may also specialize in loan signings and are known as Notary Signing Agents (NSAs). They have a greater understanding of the documents and wording used in loans, reducing the risk of errors. NSAs must first be commissioned as notary publics and can then choose to undergo additional training in mortgage loans.

The cost of hiring a notary public can vary. Most states have "caps" on how much a notary can charge for their services. However, mobile notaries may charge more for the convenience of traveling to the client's location.

Notary fees

Most states in the US have "caps" on how much a notary can charge for their services. The fee for a simple notarization, such as affixing their official seal or stamp, is often set by the state and can range from $5 to $10 per signature notarized. This fee structure can vary, with some notaries charging a flat rate per document or per signature, while others may charge a higher fee for more complex or time-consuming tasks.

Mobile notaries, who travel to the client's location, usually charge a higher fee to cover their travel expenses. The travel fee may be a set amount or calculated based on the distance travelled. For example, a mobile notary may charge around $150 for their service, including travel, while a stationary notary may charge significantly less.

In addition to the notarization fee, notaries may charge for other services such as printing and shipping documents, guiding the signer through the process, and reviewing documentation. These additional services can increase the total cost of hiring a notary. It is important for clients to understand the breakdown of fees and agree on the total cost before engaging the services of a notary.

In some cases, the fees associated with notary services for mortgage documents may be shared between the bank and the customer. Recent amendments to laws in some jurisdictions, such as Law 5/2019 in Spain, stipulate that banks should contribute to or bear the cost of certain expenses, such as registration and notary fees, as they also benefit from these services.

Choosing a notary

When choosing a notary, it's important to select someone experienced and knowledgeable about the specific type of document you need to be notarized. In the case of mortgage documents, a Notary Signing Agent (NSA) or a mortgage notary is a good option. These individuals are specifically trained in mortgage loan documents and have a greater understanding of the terminology used in loans, reducing the risk of errors. They are also well-versed in real estate industry standards and ethical conduct regulations set by state law enforcement agencies.

You can find a notary public at your local bank, law office, or financial institution, many of which offer notary services free of charge. If you are purchasing a home, you can also opt to meet with the seller at an escrow/title office, which typically has commissioned notaries on-site to finalize mortgage documents. This option is often preferred for convenience.

Alternatively, you can hire a mobile notary, who will travel to your location. While this service may be more expensive, it can be worth it for the added convenience. When choosing a mobile notary, be sure to inquire about their experience and expertise in mortgage documents.

Regardless of the type of notary you choose, it is essential to ensure they are licensed and understand the notary public law in their state. This will help guarantee the accuracy and integrity of the notarization process.

Frequently asked questions