The National Mortgage Settlement

Services for Real Estate Pros with Scanlon Signing Services
The recent $25 billion National Mortgage Settlement is likely to have a significant impact on the entire mortgage industry as well as law firms, document processing companies and notaries. For companies, the terms target the kinds of policies and practices that created the "robo-signing" assembly lines. For notaries and there supervisors, the settlement terms focus on the need to comply with state notary laws and obtain adequate training to carry out there duties. In October 2010, a coalition of state attorneys general and federal agencies launched an investigation of the financial industry following revelations the "robo-signing" affidavits were being used in foreclosure proceedings around the country. In february, five major banks reached an agreement with state and federal officials not only to pay $25 billion in relief to homeowners who were improperly foreclosed on but also to change the way they deal with mortgage documents. The terms of the settlement require banks to provide state-specific training for all empolyees who regularly prepare or execute forecloser-related documents. The banks also are required to keep records of all forclosure-related notarizations performed on there behalf. Banks who violate the reform terms can face stiff penalties (up to $5 million for repeat offenders) In the end this means we must not ignore notarial laws. Signers must personally appear before the notary with proper identification and all notarizations must adhere to state laws.
Lisa Scanlon, CSA

Comments (3)

Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ

Thanks for update on National Morgage settlement.  Good info to pass on to clients.

May 15, 2012 01:20 AM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

I would hope that we are not ignoring notary rules and laws.

May 15, 2012 01:35 AM
KanDo Organization
The KanDo Organization LLC - Tulsa, OK
Helping you find more time in your life!

The National Mortgage Settlement is one of many things I become concerned about because the State of Oklahoma has no real training for Notaries Public.  In addition, there are laws passed under various statutes in Oklahoma that impact Notaries, but unless one is inclined to research, they are not obvious.

I try to keep my state legislators apprised of the areas in which lack of understanding of the duties of a Notary Public can have a negative impact if the service is not performed correctly.  In this way, it is my hope that eventually the profession will be given the weight it deserves by attorneys, bankers, legislators and the general public.  The Commission is to do more than just stamp a piece of paper.

May 31, 2012 03:59 AM