Posted by Richard Silver
(RicSilver) on May 2, 2008, 8:25 pm
207.200.116.197
ALERT: Proposed RESPA Rules Threaten Notary Signing Agents
May 1, 2008
Dear Notary,
The National Notary Association is calling upon all Notaries to mount opposition to a proposed real estate industry reform that, if approved, threatens the jobs of Notary Signing Agents across the country. The most powerful weapon we have in defeating it is your voice.
The U.S. Department of Housing and Urban Development (HUD) has proposed rules to clarify the Real Estate Settlement Procedures Act (RESPA), and is now seeking comment from everyone in the industry on how they may be improved. The proposal requires the person who is presiding over a signing appointment — as part of the closing process — to read aloud a prepared script to the borrower and explain it if the person has questions. HUD is proposing the closing script as a way to more thoroughly inform borrowers of the terms of their loans and explain settlement services costs.
Notaries, however, are prohibited by law from explaining the terms and conditions found in closing documents.
Though the NNA supports HUD’s desire to pass reforms in the name of consumer protection, one aspect of the proposal — the so-called “closing script” — could cripple Signing Agents’ ability to attend the signing appointment, notarize documents and act as a courier. If this federal rule is enacted, Notary Signing Agents could be barred from the table in every state, regardless of current statute or practice. That is why we’re asking you to help us fight the rules by sending your comments to HUD.
The NNA has prepared formal comments which have been sent to HUD. Please take a moment to read this document, and then send comments to the agency in your own words by the deadline of May 13. It’s important for comments to be unique since template responses are treated as one single response. Please touch on the following issues in your comments:
The closing script presents additional costs, delays and liability for everyone in the mortgage industry.
HUD should provide viable alternatives to the script that wouldn’t force any one group to shoulder this responsibility
If alternatives aren’t provided, the script should be eliminated
HUD strongly encourages people to submit comments electronically through the Federal eRulemaking Portal at www.regulations.gov. You must refer to “Docket No. FR-5180-P-01 and the title “Real Estate Settlement Procedures Act (RESPA)
roposed Rules To Simplify and Improve the Process of Obtaining Mortgages and Reduce Consumer Settlement Costs” on your submission.
The full 96-page proposed rule appearing in the Federal Register can be downloaded here
Thank you for supporting the NNA’s effort to preserve the jobs of Notaries across the nation.
Sincerely,
Timothy S. Reiniger
Executive Director
National Notary Association
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