It is serious enough that she could lose her notary commission.   

She has to be LICENSED or an attorney to mark up a binder.

And her EO would refuse to cover any loss or damages, since she is acting illegally.  And she's an independent contractor, not an employee of the agency/attorney/bank.  So she is NOT covered under their E & O - so she better have BIG cash reserves should she ever get sued.  

And yes, notaries get sued.  I got sued once because I was the notary closer for a title agency, refi, 3 day right of recission, etc etc.  Everything executed PERFECTLY.

THREE YEARS LATER, the borrower decided they didn't want the loan.  Of course, it was thrown out, but my own E&O had to defend me, even though I was just the notary and had nothing to do with the loan.   Their attorney simply threw in the kitchen sink as to anyone whose hands had touched the deal.

So she needs to immediately stop.  Our company does mobile closings in 44 states using notaries only.  I would NEVER ask one of my notaries to mark up a binder.  Their one and only job is to ID and sign. PERIOD

Good luck - and a side note, in NY, this would be considered a Witness Only closing where the title AGENT is only there to pick up $ and mark up a binder for their agency while a 3rd party (bank attorney usually) conducts the actual closing.    Most agents get paid for their time and also tipped for the Pick up and Mark up - like another $150-250 per pick up.

So, if she isn't earning that kind of money, her clients know they have an inexperienced sucker on their line.  Now that she knows the laws, she's in violation of them knowningly.  Then you move on to the LEGALITY of what she is doing.


Tell her to STOP or get title licensed and then she's no longer at risk, covered by no-one.to post a reply: login - or - register