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Backdating - Why Notaries Must Just Say NO!

Any notary that does loan signings will eventually be asked to backdate. There are several possible reasons for the request, such as the loan docs were not ready on time the previous day, resulting in the borrower possibly losing his rate lock, or even the simple matter that the lender wants to count the loan as closed for the end of month business. Whatever the reason, it is fraud and a notary is bound by his oath of office not to participate in such a practice.

The function of a notary is to serve as an impartial witness to a transaction. The notary requires personal appearance of the signer and positively identifies that person according to laws of his state. The notarial certificate provides a legal record of the date and type of notarization, and certifies that all required procedures were observed. If a notary backdates, he is committing a fraudulent act and is at risk for losing his notary commission, being criminally prosecuted, and sued. A reputable notary will never engage in this practice for any price.

Posted by Linda de Bree on 01/05/2008 07:04 AM

Comments (14)

backdating requests

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14 Comments on Backdating - Why Notaries Must Just Say NO!

JAN

2008

It sound like that would be illegal. A notary is license so, why jeopardize for any reason.

Linda

This is such an important issue that you raise. The backdating of documents has become "business as usual" in virtually every title company and law office. It's expected and anticipated for the sake of convenience.

Notaries are responsible for maintaining the integrity of court records. Any intentional misrepresentation is a criminal act.

JAN

2008

Renee - You're right that backdating notary certificates is illegal. I don't know why any notary would jeopardize his or her notary commission and risk criminal prosecution.

Ed - Yes, I'm afraid you're right about the "business as usual" scenario. Thanks for your comments!

JAN

2008

If by chance someone does backdate - it can also make the document null and void - good for you to always take the higher road

JAN

2008

Linda,

I just stopped by to see who you are (saw your face on "members online now") and came by to welcome you to Active Rain!

Mike in Tucson

Thesa - Good point on the null and void issue! Amazingly, many brokers, L/O's, TC's and lenders must not be concerned about it, based on their continued requests - I'm sure they know it's wrong and illegal.

Mike - Thanks! I'm fairly new here and am just getting started!

JAN

2008

As someone who used to do notary signings all the time, I can't count the number of times I was asked to do that! It is fraud and I won't do it, sorry! Good for you to stand up and say no.

FEB

2008

Linda, I just received a call the other day from a loan officer who wanted me to do a signing in my area. I was all excited but then he hit me with, "well, the documents needed to have been signed yesterday do you feel comfortable with this?" I told him no and thank you for calling.

The nerve of this guy who didn't know me from Adam to ask me to do something illegal. Nope, it wasn't going to happen.

APR

2008

I'm impressed with the integrity displayed by notaries on this site. If a notary doesn't have integrity, he or she they should resign their commission.

LaShon - Good display of character.

I have been a notary in CA for 6 years and I have been asked to backdate loan docs. I have also been asked to back date documents that have nothing to do with real estate.

Who knows why I was asked to notarize what kind of document? I just said no!

http://www.joanbergstromnotarypublic.com

JUL

2008

I wrote a blog about this back in Sept 07, and I am still to this day interested in the very few title companies comments, and still NOT ONE mortgage broker would stand up and say this should not be tolerated. Sad! I see the only lender/broker commenting on your blog, was just saying hello since you were online at the same time as him, nothing in support of this illegal practice. I wish other states would adapt CA's policy to ASK for back-dating is illegal. To the best of my knowledge, they are the only state that has that law. Shame!

PS: My blog was: http://www.activerain.com/blogsview/193083/Calling-all-mortgage-brokers

JUL

2008

Hi Ronald,

Thanks for your comments, and yes it is troubling that the title companies and mortgage brokers are A-OK with this practice. I was asked again just the other day to backdate. A title company that I have worked for periodically over the last year or two contacted me about a loan I had closed the week before. Seems the lender had a new employee working on the package, and she had mis-spelled the name of the lender on several of the docs. They wanted me to return and resign corrected docs with the original dates. When I said no can do - it's backdating, they said, well no it's really just a correction. Nope, when you bring a fresh document and the signer signs it again on a different day, it really is backdating and is illegal.

I'm not sure what they ended up doing to correct the lender's error (couldn't they have used the Correction Agreement with Limited POA?), but I did get paid for the work I did so I am happy and can rest easy knowing that I was not a party to fraud.

JUL

2008

Linda, you are ABSOLUTELY correct! I had a similar argument about two years ago, and they ended up sending a different notary to do it & back-date - I warned them it was a felony. I reported it, and his commission is listed as Hold. I presume that means suspended, but normally it states Active, and his does not. I am a very detailed person, and he put up a smoke-screen defense (really didn't answer the charge) and with all the details I provided - copies of documents, what I & he notarized, details of exact dates and times I was at the house, phone calls the following Monday, EVERYTHING, left little to be disputed.

SEP

2008

Several months later, my blog about this is my 2nd most viewed blog, and still only 8 title/escrow companies, and 1 mortgage broker/ LO. With that much in the way of visits, and only 9 standing up against the illegal practice saddens me!

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