Many notaries think that a signing error is no big deal that can be easily fixed by going out to the borrower’s house again. After all, if the signing mistake is fixed, everything is great, right? Think again!
When a notary forgets to acknowledge a document, or collect an additional form of ID from the borrower, or print a legal size page on letter sized paper, the costs to the lender and signing agency are significant.
Let’s go through a common scenario where a notary error occurs and then backtrack to compute the true cost of the error. Let’s say that a notary doesn’t get all the signatures required from the borrower on a specific document, and that document also has to be notarized. The notary then ships the completed docs back to the lender.
The lender receives the completed loan package and a processor begins to review each document. When the omission is identified, it is flagged in the system and an internal compliance team is notified, or the signing vendor is notified directly. The signing company gets in touch with the notary to fix the document in question. The document is fixed and the original is shipped back, but not before the lender has to send out a new shipping label (Estimated Cost: $15-$20).
While is is going on, the signing company is tracking the issue, logging updates, communicating with the borrower, notary, and lender (Estimated Cost: $5). At the lender, there may be up to three people involved in emails regarding this issue (Estimated Cost: $5). Each mistake like this chips off a little piece of the signing companies trust and goodwill with the lender (Estimated Cost: $5). If enough of these mistakes occur, the lender will stop using the signing company altogether resulting in a total loss of revenue. So each notary signing error carries with it an inestimable amount of potential loss.
As you can see from the scenario above, time is money and shipping costs money. Notary signing vendors have a duty to carry out a signing correctly the first time around, to prevent these hidden costs of a signing mistake.