Notary Signing Agents are beginning to see a new recordkeeping requirement at loan closings, as one financial institution applies a key regulatory standard arising out of the foreclosure crisis and housing market collapse to the origination of new loans.
At least one major lender has started requiring NSAs to complete a “notarial evidence” form with mortgage packages. The form includes a section to record the Notary’s name, commission number and expiration date, the names of all signers at the loan signing appointment and the method used to identify them, and the loan number. It also includes descriptions of each loan document notarized and the date, time and type of notarial act performed. The “notarial evidence” form is completed separate and apart from the NSA’s journal entries for the loan documents and sent in with the signed loan documents and other stipulations from the loan signing.
The historic National Mortgage Settlement reached in February between the government and five major banks servicing mortgages requires the banks to keep records of all notarial acts performed on foreclosure and other mortgage servicing documents. The “notarial evidence” form is the first evidence of the loan servicing reforms being extended to the origination side of the mortgage industry, a trend industry observers expected would take place.
An upcoming NNA webinar will take a look at the “notarial evidence” form in detail and how it will affect Signing Agents working with loan documents. Keep watching our Facebook page and webinar page for updates. Members of our Notary Signing Agent Section are also invited to discuss this issue at the Section LinkedIn discussion group.
