As we approach the second decade of the 21st century, the American Notary office is more respected and professional than it has been since the founding of the National Notary Association in 1957; and the new roles opening up for Notaries have never been more numerous and promising.

But with this progress comes new challenges. New state laws, emerging technologies, challenging economic conditions and judicial mandates for professional standards of practice all add up to a world in which Notaries must be at their best — primarily by embracing the twin pillars of high standards of care and education.

As we enter this exciting and challenging time, The National Notary spoke with scores of Notaries, their employers and state Notary officials across the nation — in a variety of industries — to discover the central concerns on their minds, and the key issues affecting and influencing their professional lives today.

The questions were asked in open-ended fashion, with no categories or restrictions placed upon the responses. But, interestingly, the responses fell into five major categories. Despite the differences in state laws and procedural requirements, Notaries across the country, as well as the public officials responsible for supervising them, share the same concerns. This shared vision provides an important platform for action: commitment to accept responsibility to perform under the new standard of care. For Notaries, the result is protection from liability and demonstration of competence and quality which will ensure Notaries’ relevance and viability. For public officials, the result will be greater degree of protection from harm for the public. Of course, for the public, it means the peace of mind and confidence that their transactions and identities are safe. The answers, in the respondents’ own words, follow.

Our respondents strongly believe that, across the board, there is a nationwide need for Notaries to pursue education and professional development. From Colorado to Montana, Florida to Indiana, there are serious concerns about under-trained Notaries who do not understand basic principles of conduct, like requiring personal appearance, satisfactory evidence of identity and recordkeeping. Fortunately, it’s not the lack of opportunity for training that’s the problem, but rather that more Notaries need to take advantage of it.

Carol Salter of Longmont, Colorado, said she has attended countless Notary education seminars and, in all cases, has been astonished by the lack of basic knowledge shown by some Notaries who don’t realize they are breaking serious rules and putting the public and themselves at risk. She has noticed particular difficulties with Notaries who don’t understand how to handle differences in state laws.

“Some use rubber stamps; some use embossers. Some states allow you to perform marriages, some don’t. There is a huge lack of consistency that Notaries cannot necessarily fix, but they need to understand to operate professionally,” said Salter, who was honored as the NNA’s 2005 Notary of the Year. “I think it would be in the country’s best interest if we could standardize Notary rules across the board with meaningful legislation to prevent that inconsistency from state to state.”

In other areas, most Notaries want to do things the right way, but they simply just don’t know what that “way” is, said Lori Hamm, Notary compliance and training specialist with the Montana Secretary of State’s office.

“We were having a big problem with Notaries getting mixed messages on how to do their job from different sources — bosses, friends, co-workers,” she said. “We found a huge number of documents being notarized incorrectly.”

That was one of the primary reasons Montana enacted mandatory education for its Notaries this year, Hamm said. Prompted by the new law, local Notaries are eagerly enrolling in educational seminars and receiving valuable information and training. “Many tell us they wish the classes were longer!” she said.

“None of us are born with Notary genes. But the office of a Notary Public is very important and has incredible real-world implications. It can’t be done haphazardly or unprofessionally or without knowledge of its rules and requirements. It’s critically important you understand what you do and do it right,” Hamm added.

“It’s absolutely critical to go to continuing education and keep up with new developments in your business.” — Daniel Lewis, Carmel, Indiana

Closely following education issues in importance, the effect of the slumping national economy concerned many Notaries. But they also noted that with ingenuity and business acumen Notaries can find new opportunities and strengthen their bottom lines.

Notary Signing Agents (NSAs) are among those most seriously hit by the downturn and upheavals in the real estate industry. Daniel Lewis of Carmel, Indiana, said that banks in his area are not processing checks to Signing Agents as quickly as they used to, and that has devastated many local independent signing businesses.

“You can put a check into your account and it won’t clear for five days,” Lewis said. “It slows down the cash flow — I’ve seen it put some Notaries out of business.” Fortunately, he says, switching to direct deposit banking helps him avoid the cash-flow problems other local Notaries are suffering.

It also has gotten harder to find assignments, said Dany Victory, an experienced NSA in Los Angeles, California. Victory said that lenders have tightened their lending standards so much that it is limiting their mortgage business. “They were too lenient a few years ago, now I think they’ve gone too far in the other direction,” Victory said. To help offset the slowdown, Victory is diversifying. Instead of working exclusively with escrow officers as he used to, he’s offering his Notary services to local CPAs, attorneys and business managers.

While things are tough in Indiana, Lewis says he has remained successful by adapting to — and keeping up with — new developments in his profession, and taking the initiative by turning to teaching other Notaries. For example, when Indiana started requiring Signing Agents to take a title producer training class — costing from $350 to $700 — many Notaries were put out of business. Lewis trained as a title producer, developed his own curriculum and had it approved by the state so he could start teaching Notaries for more affordable rates.

“It’s absolutely critical to go to continuing education classes and keep up with new developments in your business,” he said. But, like Salter and Hamm, he thinks more basic education for Notaries is urgently needed.

“I’d love to see more classes in my state geared toward Notary basics,” he said. “There are around 1,000 Notaries in my county, and many aren’t educated. You’d be surprised by how many Notaries don’t know what an acknowledgment is.”

During this challenging time of high unemployment and fewer jobs, a commission can help Notaries strengthen their resume and set them apart from other candidates. Rich Saxelid with FDI Collateral Management in Sacramento, California, said it is highly beneficial for a job applicant to have a Notary commission.

“Having a Notary commission is definitely a plus for my firm — and for many others — when we look for prospective employees,” he said.

“In the legal field where notarization is relied upon regularly, it is always a plus when a job applicant holds a Notary commission,” said Keith Zimmet, a finance and commercial law attorney, and the managing shareholder at the Los Angeles-based Lewitt Hackman law firm. “Notaries play an important role in our firm and we rely on them to be professional and ethical when handling important legal documents.”

“I think it would be in the country’s best interest if we could standardize Notary rules across the board.” — Carol Salter, Longmont, Colorado

One thing Notaries are acutely aware of, however, is liability. Even the most scrupulous Notary can end up on the wrong side of a lawsuit, but one of the key strategies for protecting oneself — errors and omissions (E&O) insurance — also happens to be easy and relatively inexpensive.

E&O Insurance is different from a state-required Notary bond. Bonds protect the public from financial loss resulting from an improper official act, and the surety company that issues the bond, can seek reimbursement from the Notary if it pays out any damages. E&O insurance, on the other hand, protects the Notary and claims do not need to be paid back if the Notary is found liable for damages. Additionally, many E&O policies also include assisting the Notary with a legal defense and its cost, up to the policy limit.

“Notaries have always been liable for their actions,” said Wanda Bengoechea, a recently retired Notary from Carmichael, California. But that concern today is greater than ever. “Today, a $15,000 or $20,000 bond won’t come close to covering possible damages, which makes E&O insurance that much more valuable as one of the Notary’s protective tools.”

Bengoechea first became a Notary in 1961 and maintained her commission over the course of four decades, retiring only this year. She kept her commission because it was necessary for her work in the title industry. It also helped that she and her employers over the years trusted each other, especially because she adhered to best practices and professional standards of care — the Notary’s number one protection against liability. If an accusation of negligence had ever come up, she said, her employers believed in her integrity so much they would have backed her all the way to court.

However, many Notaries do not have the luxury of knowing their employers will stand by them if a mistake is made. That’s why Notaries should be proactive in protecting themselves by obtaining their own insurance, and asking their employers about the company’s insurance policies and what they will cover.

More than ever, Bengoechea says a two-way support structure should exist between Notaries and their bosses. Notaries have to follow high professional standards, but, in return, employers need to support their Notaries with education, insurance and sound ethical policies for notarizing at the workplace. Bengoechea says she was fortunate because her employers never asked her to do anything unethical.

The problem arises when an employer fails to support the need for Notary education, and declines to bear the costs. In such cases it remains incumbent upon the Notary to seek out the proper training alone. The only way to ensure you are following professional standards of care is through education and training.

The NNA has been contacted by thousands of Notaries who have come under pressure to bend or break rules in order to expedite a supervisor’s needs. One Notary even had to call for advice after being asked to perform an improper notarial act by a police officer!

Dishonest practices can’t succeed in today’s environment, says Bengoechea. “Notaries have to understand the hazards if they’re careless and don’t follow the law,” she said. “Learn the law and use it at all times. Best practices are the best defense against a lawsuit.”

Notaries aren’t the only ones being held to higher standards. Employers are also being sent a message: They are responsible for ensuring that the Notaries they employ to perform official acts for the public are properly trained and supervised.

For example, earlier this year, a Notary accused of skirting identity requirements ignited a legal battle between one of the world’s largest banks — Bank of America — and a southern Illinois man who claims the improper notarization cost him more than $64,000. An Illinois Appellate Court, ruling on the side of professional standards of practice to protect the public, has cleared the way for the victim to sue the bank and the Notary for damages.

In another recent case, called Vancura v. Katris, an appellate court held a national photocopy chain directly liable for the misconduct of a Notary employee because the business failed to properly train and supervise him — even though state law imposed no such requirement. The Notary also came under fire, and settled his portion of the case by paying $30,000 out of his own pocket.

“Companies need to have a process in place if Notaries have questions. Not only to educate and provide information, but to support Notaries if they do the right thing and someone challenges the notarization,” Bengoechea said.

“Companies need to … educate and provide information to support the Notary.” — Wanda Bengoechea, Carmichael, California

In recent years, the general public’s awareness of Notaries and their responsibilities has increased dramatically — a situation that has had both positive and negative effects on business, Notaries say.

“Public perception of us has changed for the better in recent years,” said Donna Armbrister, who has worked for eight years as a Notary in Cerritos, California. She has seen an increase in different types of documents requiring notarization, as well as a growing public concern about identity theft and forgery that is making signers more aware of just how important a Notary’s role is in preventing fraud.

At the same time, the public is expecting far more from Notaries, and there are many people who think that a Notary’s increased visibility means they have the authority to perform acts that are, in fact, prohibited by state law.

“People expect us to be like some kind of quasi-legal consultant, able to explain about signatures or give them legal advice, but we’re not lawyers,” Armbrister said. “I find myself having to explain a Notary’s limitations, but they say ‘You should know that.’”

Armbrister would like to see more efforts to educate the public about the role of Notaries so that signers don’t get frustrated trying to ask Notaries for services they can’t legally provide. “I think making resources available to the general public to teach them about Notaries would be quite helpful,” she said.

While the public’s perception of Notaries has changed, recent nationwide concerns over identity theft have many people wondering if they can trust the Notaries they go to for services, said Tanya Morrison, a Notary from Gainesville, Florida. “In the mortgage industry, more and more signers are asking for my identification as a Notary,” she said. “I think Notaries need to be prepared for these new concerns and these issues warrant attention.”

While very few states issue identification cards to Notaries, the NNA recommends keeping a copy of your commission certificate — or any other proof that you are a commissioned Notary — on hand to allay the concerns of signers.

“…Some people expect us to be like some kind of quasi-legal consultant, able to explain about signatures or give them legal advice, but we’re not lawyers.” — Donna Armbrister, Cerritos, California

While the economy has made things tougher in some ways for many Notaries, Morrison is excited about branching into new specialties — especially eNotarization.

“We’re not just witnessing signatures and taking oaths anymore,” she said. “The face of notarization is changing; I think that’s awesome. I think eNotarization is a very positive step. It’s moving us quickly toward a paperless society.”

Many Notaries Morrison knows are suffering from “techno-stress” or fear of adopting electronic technology in their work — something they will need to overcome. “I see Notaries losing opportunities because of this,” she said. “Companies are not only asking if we can receive documents by eMail, but also notarize them electronically. Those are things I see happening here in Florida.”

One former Notary who isn’t suffering from “techno-stress” is Bengoechea. The veteran retired California Notary said electronic documents and signatures are a fascinating change to the profession. “If I renewed my commission, I’d do so to try eNotarization,” she said.

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