A Notary Signing Agent is a Notary who has been trained to handle loan documents. Lenders and title companies hire Signing Agents as independent contractors to assist in the last step of the loan process.
If you’ve ever purchased a home, refinanced a mortgage, or leased a new car, chances are you’ve worked with either a notary public or a loan signing agent. While they may seem similar on the surface, these two roles actually have some key differences
As real estate transactions and financial services become increasingly digital, understanding the distinction between notaries public and loan signing agents is more important than ever Read on to learn more about what each professional does, how they compare, and when you need one versus the other.
What is a Notary Public?
A notary public is an official authorized by the state to witness the signing of important documents and administer oaths There are over 4 million notaries in the United States today
The main role of a notary public is to:
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Verify the identity of the person signing a document. Notaries inspect ID cards and confirm identities.
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Witness the actual signature on the document. They observe and can attest that a signature is legitimate.
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Certify that the signing is voluntary. They make sure there is no coercion or fraud involved.
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Record details about the transaction. Notaries journal details like the date, names, and type of document.
Notaries public do not normally offer any kind of legal advice or counseling regarding documents. They simply confirm identities, witness signatures, and stamp documents with their notary seal.
Common documents that require a notary public include:
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Real estate paperwork – Deeds, mortgages, deeds of trust
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Financial documents – Loan agreements, promissory notes
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Estate planning – Wills, trusts, powers of attorney
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Affidavits and oaths
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Business agreements – Contracts, sales agreements
Becoming a notary generally involves passing a background check, taking a course, and passing an exam. Requirements vary by state. Many notaries offer mobile services, traveling directly to clients to notarize documents.
What is a Loan Signing Agent?
A loan signing agent (LSA) is a specialized type of notary public who focuses specifically on loan closings and mortgage documents. They facilitate and notarize the mountain of paperwork involved in closing real estate transactions and loans.
In addition to performing standard notary duties like verifying IDs and witnessing signatures, loan signing agents also:
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Explain complex mortgage documents to borrowers
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Ensure all documents comply with lender requirements
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Collect signatures on all documents
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Return signed loan packages to the lender
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Record mortgage documents with the county
Loan signing agents have expertise in navigating the intricate mortgage paperwork that accompanies real estate deals. They help ensure borrowers understand the fine print and that lenders receive fully executed loan documents.
LSAs undergo training on mortgage documentation above and beyond standard notary education. Many states also require loan signing agents to pass background checks and meet continuing education requirements yearly.
Key Differences Between Notary Publics and Loan Signing Agents
While all loan signing agents are notaries, not all notaries are LSAs. Here are some of the main differences:
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Expertise: Loan signing agents specialize exclusively in real estate and mortgage documents. Notaries public handle a wider variety of document types.
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Explanations: LSAs explain mortgage documents in detail to borrowers. Notaries simply witness signatures.
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Loan processes: Loan signing agents manage the entire loan document process end-to-end. Notaries fulfill just one piece of it.
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Regulations: Loan signing agents must meet extra certification and training requirements. Notary requirements are generally less extensive.
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Travel: Most loan signing agents offer mobile services and will meet borrowers at home or work. Some notaries also travel, but many require clients to come to them.
When Do You Need a Loan Signing Agent vs. a Notary Public?
Here are some quick rules of thumb on when each professional is best suited:
Use a loan signing agent for:
- Mortgage closings – Purchase, refinance, reverse mortgage
- Home equity loans or lines of credit
- Commercial real estate loans
Use a notary public for:
- Estate planning documents
- Affidavits and oaths
- Business agreements and contracts
- Legal disputes requiring affidavits
- Documents requiring just a witness signature
If you’re working on any mortgage-related real estate transaction, your best bet is to work with a specialized loan signing agent. They have the right expertise and qualifications to ensure a smooth closing.
For other agreements outside of mortgages, a standard notary public can verify signatures and identities on general documents.
Online Notarization Changes the Game
Advances in technology are transforming the notary and loan signing business. In many states, notaries and loan signing agents can now offer services remotely using online notarization.
With online notarization, the entire process takes place digitally:
- Documents are uploaded online and e-signed
- Signers validate identities via knowledge-based questions
- Webcams capture real-time audio-video of the signing
- The notary witnesses the signing and affixes an electronic stamp and signature
Online notarization allows clients to get documents notarized entirely online, without any need to meet in person. This makes life vastly easier for everyone involved.
For notaries and loan signing agents, technology eliminates the need to travel to physical signings. Online notarization expands access to their services for rural and mobility-limited clients.
As adoption of online notarization grows, expect eClosings and eSignings to become the norm across real estate and financial services. This technology provides convenience and security superior to paper-based processes.
Which Service Do You Need?
When embarking on a major financial transaction like a mortgage or business deal, take a minute to consider whether a notary public or loan signing agent best suits your needs.
Loan signing agents offer specialized expertise in real estate transactions that can help ensure everything goes smoothly. For non-mortgage documents, a standard notary public can provide the required signature verification quickly and conveniently.
And with online services, both notaries and loan signing agents can handle most transactions entirely remotely. As notarization goes digital, closings and signings are getting faster, easier, and more secure.
Whether you need a specialized LSA or a standard notary, be sure to find a reputable professional insured and authorized to operate in your state. They will ensure your important documents are executed legally, safely, and efficiently.
What do Notary Signing Agents do?
The responsibilities of a Notary Signing Agent generally include printing loan documents, meeting the signer and notarizing their signature, and quickly returning the documents for processing. NSAs are also responsible for following any additional instructions from the lender, title company or signing service that hires them for loan closing work. For example, an NSA may be asked to fax back documents right away or use a specific mailing service to return the paperwork safely.
Since Notary Signing Agents have access to private financial information about borrowers and are sent into their clients home, the mortgage finance industry requires all Signing Agents to undergo a background screening on an annual basis. This helps prevent mortgage fraud and ensures the consumers information is secure.
How do Signing Agents make money?
Notary Signing Agents are independent contractors and decide how much they charge for their signing services. As contractors, Signing Agents typically charge per assignment, ranging from below $100 to a couple of hundred dollars. The amount you make will be based on how many assignments you can complete in a day.
Other factors that affect the cost of an assignment is the contracting company, whether youre working for a lender or an escrow office, and their budget. In addition to the notarization fees set by state law, Signing Agents can also charge for courier services, which includes printing and delivering completed loan packages to the contracting company. All fees should be agreed to before the signing.
Notary Public vs Signing Agent aka Loan Signing Agent aka Notary Signing Agent! Quick Training!
FAQ
What type of notary makes the most money?
How much does a loan signing agent make in California?
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Annual Salary
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Hourly Wage
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Top Earners
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$78,952
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$38
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75th Percentile
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$69,100
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$33
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Average
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$54,283
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$26
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25th Percentile
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$41,400
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$20
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What is the difference between a loan signing agent and a notary public?
The difference between loan signing agents (LSA) and notary publics is that loan signing agents are explicitly trained and authorized to assist borrowers with loan and mortgage documents. In addition to notarization, an LSA is tasked with ensuring the documents are executed correctly and filed on time to secure the loan.
Why do you need a notary signing agent?
For example, during a home purchase, the notary loan signing agent would typically be present when the buyer signs the loan documents to help ensure the buyer understands the terms and conditions of the mortgage. Making sure that all loan documents are accurate and complete can help avoid hiccups during real estate transactions.
How does a notary sign a mortgage?
To do this, a notary signing agent will typically: Confirm all necessary mortgage documents are present. Check for any errors, such as incorrect names or figures. Ensure all required signatures, dates and initials are in place. Once the notary signing agent is satisfied that everything is in order, they’ll notarize the documents.
What is the difference between a signing agent and a notary?
Simply put: Notaries are there to verify identities and witness signatures; Signing agents are certified to walk borrowers through specific loan-signing documents. What Is a Notary Public? A notary public is a public officer constituted by law who is certified to witness and confirm the signing of legal documents.