Notary Loan Signing Agent Duties
Notary publics are authorized loan closing agents. These people can perform mortgage closings and secured loan closings and can act as witnesses to legal transactions. Notary publics are given embossed stamps used to authorize legal paperwork. During a loan closing, a notary public has a very specific set of duties.
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Identification
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During a mortgage closing, the first step is to verify the identity of the borrower(s). Usually a notary public must see two forms of identification--often a state-issued ID card, such as a driver's license, and a credit card. A photo ID must be presented to the notary public so that he can confirm that the borrower is actually the person listed on the loan documents. The notary then fills in the ID paperwork confirming this step.
Reviewing Documents
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The notary public must review all mortgage and secured loan paperwork prior to sitting down with the borrowers. She is looking for any red flags--such as blank spaces--that might delegitimize the closing. She is also looking to make sure the lender printing the documents did not misspell any words. Last, the notary public must be familiar with the loan type before she commits to closing the loan.
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Mortgage
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The notary public's main role in a secured loan closing is to witness the signing of the mortgage or Deed of Trust. When the borrowers get to this document, they will have to understand that the loan they are taking out is attached to their property, and the lender reserves the right to seize that property if the borrower defaults. Once signed by borrowers and the notary public, the notary public then uses his stamp to emboss the mortgage, confirming it as legal.
Recission
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In some states, a recission period is required. This is a period of time--normally three days--in which a borrower reserves the right to cancel the loan. This is also called a "cooling off" period. This gives the borrower ample time to review the closing documents with trusted advisers and friends. The notary public must witness the signing and sign the recission notice at closing.
Warning
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Beware any notary public who is good friends with a lender. The purpose of the notary public is to have a third-party agent in the loan closing who will honestly explain the documents and honestly answer questions. Any notary public working on behalf of the lender will intrinsically protect the lender's interests--which in some cases spells trouble for borrowers.
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