Notary Notes Magazine - DEMO - (Page 1)

a bimonthly publication of the Pennsylvania Association of Notaries ISSN 1535-0835 June/July 2008 NOTARY NOTES INSIDE We are following the trend to reduce paper usage (thus saving trees, oxygenating the atmosphere, preserving the environment and keeping our publication out of landfills) by offering Notary Notes in electronic format. If you have called the PAN office with a question regarding a bond, there’s a good chance Diane Seitz, a customer service representative in the Bond Department, answered your question. Over the years, a number of notaries have casually revealed to us that they keep copies of their customers’ identification and the documents they notarize. An insurance company in Florida insists that any client who has a trampoline must obtain a notarized affidavit stating that the apparatus has been removed from the property. Otherwise, the homeowner’s insurance policy will be cancelled. Conscientious Notaries Can Help Prevent Mortgage Fraud ortgage fraud has dominated the news in recent months and no wonder. Losses from mortgage fraud will cost the real estate industry about $2.5 billion annually for the next several years. M Page 4 Page 5 Notarization of loan documents is an important aspect of the mortgage industry. Signing services contract with notaries to meet with borrowers in person and instruct them on where to sign and/or initial loan documents. According to James Ronan, a certified fraud examiner and vice president for industry relations at Interthinx, a California-based provider of automated fraud protection support tools, notaries verify that mortgage documents are signed according to the rules and regulations of the mortgage industry. Yet, more and more notaries are being drawn into mortgage fraud and risking their notarial commissions. In the past several years, some notaries were pressured to notarize documents without meeting the borrowers in person and verifying their identities and signatures. Other types of mortgage fraud, including identity theft, have led to lawsuits filed against notaries. How can conscientious notaries help prevent mortgage fraud? • Always have the signers appear in person before you. • Properly identify your customers. • Make sure the names on the document match the names on the identification presented to you. • Never notarize documents that have blank spaces. • Keep a close eye out for ID that has been tampered with. • Watch out for any suspicious behavior from your customer. • Stay informed by learning how to spot potential mortgage fraud. From Flips To Foreclosures: Definitions of Mortgage Fraud There are a number of ways criminals commit mortgage fraud. They include: Air loans—The criminal sets up different phone numbers to obtain loans and poses as a borrower, employer, appraiser and credit agency when the lender calls to verify information. Straw owner—To apply for a loan, the criminal pays a person, sometimes a friend or relative, for the use of his name and credit history. Straw buyers may be tricked into thinking they are investing in real estate that will be rented out, with the rental payments paying the mortgage. Appraisal fraud—A dishonest appraiser inflates the value of the property. When the seller gets the check at the closing for a bogus amount, he pays off the appraiser. Typically, the borrower doesn’t make any mortgage payments and the house goes into foreclosure. Fraud cont. on Page 2 Page 11 Page 13

Table of Contents Feed for the Digital Edition of Notary Notes Magazine - DEMO

Notary Notes Magazine - DEMO Contents From PAN’s Mailbox From the President’s Desk Notary Notes is Going Green PAN Can Help Member Businesses Complete All Appointment and Reappointment Tasks Before You Notarize CSR Handles a Wide Range of Customers’ Bond Questions PAN and Staples Work Together to Make it Easy for Members PAN Member Slowing Down (Well, Sort of) After 45 Years PA Recorder of Deeds Fees 2008 Notary 101: Protect Yourself Against Liability When Will You Need E&O? Sister of Mercy Appreciates PAN Attorney Knows Notary Law When it Comes to Venue To Keep or Not to Keep Copies Signing Up for Protection: Another Bill-and-Ralph Story Affidavits Spring Into Action Against Trampolines Pennsylvania Announces Notary Disciplinary Actions Help Us Prevent ID Theft The Electronic Notary: Electronic Notary Initiative Moving Slowly Seminar Schedules Know Your Forms: MV-44 Form MV-913 Revised for 2008 NASCAR Race Season Environmental Protection Publishes Final CARB Certification Regulations Old Editions of MV-4ST are Obsolete June 1

Notary Notes Magazine - DEMO

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