New updates to West Virginia Notary Laws Update on June 17th.
The bill focuses on remote online notarizations (RON) and remote ink notarial acts (RIN).
Read MoreFederal Judge Bans Eviction Moratorium
A federal judge in Washington DC struck down the national eviction moratorium across the country on Wednesday.
U.S. District Judge Dabney L. Fiedrich of the District of Columbia ruled that the CDC does not have the authority to create and enforce a law regarding evictions. In other words, it is outside of their purview.
A federal judge ruled Wednesday that the Centers for Disease Control and Prevention lacked the legal authority to impose a national eviction moratorium during the COVID-19 pandemic. The ruling could potentially impact millions of households that have fallen behind on rent.
Fast Company
Challenge Incoming
The Department of Justice has indicated that they plan to appeal the ruling. They have now appealed the ruling. The Biden administration has said that they are reviewing the ruling and considering their options in regard to the ruling.
The Justice Department has asked the judge to put a stay on the ruling while the appeals process plays out. No response has been given on whether or not the stay will be granted. The judge has now temporarily stayed the ruling.
The Biden administration has indicated it is attempting to pass a 50 billion dollar relief package for renters and landlords. During the moratorium it was declared that back rent would be owed when the moratorium was lifted, though no good process has been set forward, and industry analysts have indicated it will be very difficult to collect back rent for those who could not afford it, or used their stimulus funds for other expenditures.
State and Local Impact
The federal order will not preempt certain eviction moratoriums at the state and local levels.
But, expect more appeals to be filed in those locales based on this ruling. Though a complete list of local and state regulations regarding the eviction moratorium is outside our purview, one of the states whose moratorium will stand is New York.
The ruling will not affect New York’s laws because they are more stringent than the federal measure, said Sen. Brian Kavanagh, D-Manhattan, who sponsored the moratorium legislation in the Senate. “It doesn’t have any direct effect at all,” he said.
Democrat and Chronicle
The Argument for the Moratorium
Proponents of the eviction moratorium are varied.
Some say that any evictions will make the Covid crisis worse, making the virus easier to spread. They assert that is why the CDC has the authority to enforce the moratorium as it affects public health.
Others assert that during a time of crisis it is unethical to allow evictions. Many of them believe that a rental property is an investment, and that the landlords chose to take that risk.
The more fringe proponents believe that rent is unethical altogether.
The Argument Against the Moratorium
For those who support ending the moratorium, they say that while renters have been provided stimulus, landlords have not. And there have been no provisions enforcing renters to use any of the money from stimulus checks or the expanded unemployment to pay rent.
Some landlords have been hit harder than others. Most have been willing to work with renters to get through the pandemic by updating leases or allowing renters to pay what they can afford. Others have stated they have tenants that are abusing the eviction moratorium altogether, with no plan to pay rent, or use any of the stimulus funds to pay rent.
Regarding the investment argument, landlords have asserted that the moratorium goes beyond simply opening up their risk in investment. They say that if the units are empty, then that is the risk they take in the investment. But, since the renters are allowed to stay in the properties, the landlords are forced to pay additional losses that fall outside of what their investment should entail.
It should be noted that some areas and leases require the landlord to also pay utilities and other costs, and they should not be forced to do so, as many landlords find themselves in the same financial predicament of their renters. Their have been a number of court allowed evictions across the country for abuse of this. In one, tenants ran up $2,000 of utility costs in a single month to spite the landlord.
The Job Market and Unemployment
As the economy has rebounded, many employers are looking for workers. Local business owners we have spoken with say they have job openings they cannot get applicants for.
Others have indicated that the few applicants they have had, have no interest in the job. That they have basically asserted in job interviews they are only doing so to meet unemployment requirements.
While we’ll admit that some of this is anecdotal, the job problem is very real.
The coronavirus pandemic forced many businesses to close their doors and turn away customers and employees, but as many of those businesses and restaurants begin to reopen, they are looking for employees to fill available positions as they keep up with increased demand for their goods and services.
CBS 4, Miami
The Effects for Notaries
This was always going to boil over at some point.
For notaries, better or worse, this will result in a large amount of foreclosures across the country. After those foreclosures will come a lot of property sales, most likely much larger than the amount normally seen.
This can be seen as a financial positive for notaries.
This may be slightly tempered by the drastic increase in the price of properties during the crisis. Some economists have argued that Covid has created a bubble in the housing market. One that may lead to another crash in housing prices.
An earlier end to the moratorium, while still popping the bubble, may do so before it gets too large. Most of us remember in 2007 the bubble was too large and left many homeowners under water, compounding the crisis.
Whatever way you personally feel about this situation, it is something that will have a large effect on the notary industry.
Your Nationwide Notary Signing Service
Increase your efficiency and bottom line with Sunshine’s Mobile Notary Services and Online Notary Services. Sunshine is always there when you need us.
Or Call us at (727) 817-0000
The New Notary Rules
We stand again in a revolution, but what are the new notary rules?
- Are we in the new wild west?
- Are the bars set today going to be the bars of tomorrow?
- Will the laws be consistent, or are we going to need to pull our hair out figuring every minute change?
The New Mobile Office
As times change and mobile notaries look towards a new hybrid model, what does the new mobile office look like? Mobile notaries already know how to do business on the go, so what is needed to maximize efficiency in the online era?
How do we do so under the new notary model?
Much Stays the Same
The more things change, the more things stay the same.
Alphonse Karr – French Novelist
We still want to do business on the go, if possible. We all want to maximize our business efficiency, as well as profit. And we all would like to do so with the least amount of hassle.
So where do we start?
We all want to still maximize our gas efficiency by taking several simple steps. And we’d like to keep some semblance of a mobile office.
What’s in the New Mobile Office?
You may not have much of a change at all.
Most of us already have our laptops. Some of us already have vehicles with internet, though you don’t have to have a vehicle with internet as long as you have a recent smart phone. The fact is, most of us already have everything we need.
If your vehicle does not have wi-fi (mine does not), you can set your phone up as a mobile hot spot and connect directly to it. Of course, if it does, you can just connect directly to it.
Keep it Quiet
The biggest issue we may run into if we want to do a remote signing on the go is noise. It won’t do you any good if you are drowned out by traffic, trains, parades or just loud areas.
So the big question will be how you track down quiet areas within the route(s) you would normally take for your business. Hopefully a quiet place you won’t get interrupted in during your signing, be it a security guard or anyone else.
This may even be a place that is only quiet part of the day, but we may be looking at places like:
- Parks where you have an out of the way area.
- A quiet portion of a large parking lot, or maybe one at night where security won’t be there to interrupt.
- A rest area.
- Where your current mobile signing is. People are used to contractors doing computer work before or after a job.
- A friend or family’s home.
- Or anywhere else you can find that is nice and quiet.
New Equipment
With any new venture comes new equipment. A mobile office for online signings may not require much, but there are a few things you may want to look at.
- Drop Cloth or Background – If we are in a vehicle, we may not want to advertise it. So we may want to use a drop cloth, or maybe a background that is a little prettier, behind us. Make it look like we are in a closed office, or maybe a beach in Hawaii.
- New Light – If you end up doing a signing in the evening, or you surround yourself with a drop cloth, you are probably going to want to look into a light. Vehicle or laptop lights are great, but they tend to not provide that nice bright and even light you would have in an office. With LEDs, lights don’t use up much energy, so you can easily get one or two that will make the mobile office look like a static one.
- Noise Cancelling Microphone or Headset – Let’s face it. This goes beyond mobile. Have we ever met any kind of office that is perfectly quiet all the time? Client communication is key. Ideally, we’d like them to understand us, and vice versa, just as well as if we were in person. Even a face to face at Starbucks. So a noise cancelling microphone or headset may be the best way to keep out unwanted noise. Just realize if you are twenty feet from the train tracks it won’t do much help.
Recently we were asked if we really should go mobile for online signings. And the answer was simple.
I may prefer to do a signing in the office, but I prefer money more than that.
Your Nationwide Notary Signing Service
Increase your efficiency and bottom line with Sunshine’s Mobile Notary Services and Online Notary Services. Sunshine is always there when you need us.
Or Call us at (727) 817-0000
Mortgage Rates Rise as Lenders Attempt to Limit New Applications
Mortgage rates are starting to rise as lenders try to stem new applications.
Lenders have been swamped with new applications as low interest rates have led to rising home prices and, more importantly, applications.
Why Slow Apps?
While low interest rates have kept the real estate engine moving during the COVID era, some lenders were already finding the low interest rates untenable.
A couple of large lenders had already capped applications based on loan size, while instead focusing on things like fulfilling PPP (Payroll Protection Program) loans. One large lender we know of stopped fulfilling home loans under two million dollars.
Other lenders stepped forward to fill the gap, but growing numbers of lenders are growing wary of the large number of loans at such low rates.
The Bustling Housing Market
As millions have lost work and thousands of businesses have failed, the housing market has helped to buoy the economy.
The massive drop in rates has led to large gains in home prices in most markets, while refinancing has opened the door for lower payments during a time when many need them.
But, long term forecasts are more uncertain. The last thing the industry wants to see is a market with declining prices as we move forward. And let’s face it, neither do buyers, especially after so many were left under water for so long after the real estate crash of 2007.
How Far Will Rates Rise?
Right now we are seeing rates rise between a quarter and a half a point. But, some analysts see this continuing as lenders try to make loans more profitable, hedging their bets from the low interest rates.
Refinance rates are a little more stable, but higher rates appear to be on the horizon. Business outlets like Fox Business are starting to advise those looking to refinance to do so sooner than later.
Has This Affected Notaries?
In some cases, yes. Between the busy market and some notaries sitting out signings due to the pestilence, there has been a notary squeeze for some.
Online signings have (very) slowly started to creep in, but quickly changing rules, no national standard, and work from home have all complicated the situation.
While work from home has been a blessing for many, large institutions are running into issues with training. In an industry where a single typo on a 40 page doc can wreck a transaction, training employees to exacting standards in all 50 states is onerous.
Especially when you are training tens of thousands of them.
If we’ve learned anything in the last year it is to expect the unexpected. Notary demand will remain strong, though.
Your Nationwide Notary Signing Service
Increase your efficiency and bottom line with Sunshine’s Mobile Notary Services and Online Notary Services. Sunshine is always there when you need us.
Or Call us at (727) 817-0000
The New Notary Model
The world changes, we change with it. So, how does the notary create a new model for their business?
The Remote Revolution?
As a notary, and a small business owner, a large change in the landscape requires a change in business model.
Fortunately, as of now, it appears we have some time. Industry forecasts are now predicting remote notarizations to double by 2025, from 2020 numbers. That is not exactly the revolution many were expecting.
Make no mistake, it is coming. But, there will be bumps in the road. Webcams aren’t eyes, and it is bound to cause problems.
IDs can be tough enough. There may be a real push to require RealID for remote transactions. Originally intended for airline flights and sensitive government facilities, the requirements for it are already expanding.
The Mobile Revolution
Don’t forget, you’ve already been part of one revolution!
Mobile Notarization transformed an industry that had been static for hundreds of years. It completely changed the game. No longer did you have to travel to the notary, the notary traveled to you!
This not only allowed greater flexibility for those needing documents notarized, but opened a flood gate for a new generation of notaries. Notaries who now had the opportunity to make more money than their predecessors.
It even saved businesses that needed notaries money, as they were now able to streamline their process and increase their productivity.
What seemed at first glance to some to be a hassle ended up being a win win for everyone.
Remote Opportunities
It is easy to look at a situation and find negatives. It is another entirely to find the positives.
When many of us look at our industry, we think of mortgages. And rightfully so. It is the main source of income for not only notaries, but also notary services such as ourselves.
And it is easy to find ways the remote revolution may cost us. From full virtual closings to things like hybrid signings, it is normal to have some qualms.
But, so did notaries during the mobile revolution. And in the end, the reservations held were let go as the industry blossomed into a new era. One of both freedom for the notary, as well as the customer.
Those of us ready to re-tool our belt will find ways to thrive in a growing marketplace.
New Opportunities Mean New Income
Right now there are still a lot of signings that are static. And even more that never happen, as people just cross their fingers and hope it will all be well.
But, with the proper marketing and business development, the ease of online signings will bring new signing opportunities to the fold.
More competitive pricing will continue to squeeze static notaries, who are bound to onerous fees they can charge in most states. This is a big reason the mobile notary revolution happened and it helped notaries make more money.
Individuals commonly forego getting documents notarized that they should. From simple hold harmless agreements, private loans or IOUs among family members, and even simple agreements between neighbors for things like easement access.
And too often these people get bitten in the rear. Because they find the current process either too onerous or too expensive.
But, remote signings will make this both easier and price competitive.
Diversification Protects You
We say it all the time. Diversify, diversify, diversify.
We can’t tell you how many comments we’ve received over the years about us accepting more types of signings than mortgages. More types of signings than our competitors.
Why would you do that? It is stupid to accept signings that pay less then others. Why waste my time?
But, that is a large part of what made Sunshine Signing into who we are today. Diversification has allowed us to grow stronger even when an industry wanes.
While others floundered during the real estate crash in 2007, we ended up thriving because our business was not solely reliant on new mortgages and refinances. And while others faltered, when the market rebounded, we were able to acquire more business in that sector.
As the old adage says, “Don’t put all of your eggs in one basket.”.
Remote Notarization is Diversification
Even after the mobile revolution, static notaries still stand. And even after the remote revolution occurs, mobile notaries will do the same.
So, the question we need to ask ourselves is this?
How do I add robust online services to my existing mobile notary business?
- How do I capitalize on the slate of new signings?
- How do I make myself mobile and online at the same time?
- How do I turn this into an opportunity to make more money?
These are just a few questions we need to ask before we prepare our business for a new world.
And we will talk more about these topics in upcoming articles.
For example, what does the new mobile office look like?
Hybrid Closing and the Notary
The hybrid closing is something a few notaries are starting to be affected by.
As the move to online closings takes baby steps, the hybrid closing is a new trend to take a look at.
Are they the future of the industry, or just a stop gap on the way. With the slower than projected growth of remote online notarizations (we’ll have more on that soon), hybrids are starting to emerge.
What is a Hybrid Closing?
A hybrid closing is one in which part of the closing is done remotely, while another part is performed in person.
The banks are looking towards them as a way to split the work done in the closing.
So here is how it works.
A closing package is composed of several files that need to be notarized. They can all be done in person, but they don’t have to.
For example, in attorney states, under the temporary rules in place, some closings are now being done with some docs remotely, while other documents that require an attorney are done in person.
New York state is the leader in this right now, but it is still in its infancy.
Will This Only Affect Certain States?
Truthfully, right now we are not sure. We only know that a few of the large lending institutions are giving it a try. Only the future holds how much of this will potentially affect the industry.
We do know that lenders put more weight behind certain documents than others. The law in many states does as well. So, those documents are being split under the hybrid closing model.
Since the laws right now are so disconnected across the country, and many are only temporary because of COVID, it is tough to tell where this will spread to.
Does That Mean Two Notaries for One Closing?
For some closings, yes.
And we think that the messiness of these closings will be one factor that decides the future of the hybrid closing model.
Are two notaries for one closing a good idea? A good part of us says it is not. One set of documents. Two notaries. A lot of room for error there.
What if you have an experienced and professional notary for one part of the transaction, and a not so good notary on the other end. It could potentially create a bit of chaos in a lot of ways.
However, that does not mean it will not happen.
If the rewards outweigh the risks, large lenders will follow.
Can the Same Notary do Both Parts of the Hybrid Closing?
There is no reason not.
As many of you know, we now offer online notaries. Some of you are already signed up with us for those services.
We all have to change with the times. And while online notarizations only represent a tiny fraction of our business right now, the fact is that they probably won’t several years from now.
Look, we all have to embrace and adapt to change. The notary industry, and every other thing in our life, is constantly changing. You either change with the times or get left in the dust.
Might it be our preference to find an online notary close to the physical part of the signing? We think so, but to be honest, it is too early to tell. We are looking at a very new and emerging topic here.
What Does This Mean for My Business?
In the short term, probably not much. But, we like to look ahead, and you should, too.
It is best to be out in front of the market. To be ready if and when the next trend comes down the pipeline. To be ready to jump on new trends before our competitors.
This is the best reason why performing a hybrid closing needs to be on your radar.
Your Nationwide Notary Signing Service
Increase your efficiency and bottom line with Sunshine’s Mobile Notary Services and Online Notary Services. Sunshine is always there when you need us.
Or Call us at (727) 817-0000
Covid and the Notary Gig
The work landscape is changing due to Covid and many are looking at a notary gig.
As more people look at returning to the workplace, many have realized they don’t want to go back. They’ve found the flexibility of working from home (probably why they are wanted back in the workplace) and found they prefer it.
Read MoreMassachusetts Supreme Court Affirms Market Rates
Don’t we all want market rates for our work? The Massachusetts Supreme Court has agreed.
Though this mainly affects static signings, almost every state has laws regulating the amount that may be charged for a notarization. Laws that when the average notary looks at the prices, it gives them the willies.
Notary pricing laws had a proper place and purpose. They ensured that everyone had access to notarize documents at a price that was reasonably affordable. The premise being that the need to the public outweighed the need to the notary.
So, the notary was allowed to charge a fair price and the signer knew they weren’t getting price gouged. A win-win as we like to call it.
A win-win at the time.
Market Rates Change with the Times
But, times move on. And the rates a notary could charge did not.
The notary was required to eat any new costs. The notary was held captive by inflation. None of these costs could be passed on to the consumer and work as a static notary went from a decent career to just a job, if one was lucky, which most are not.
Over time all the profit was gone and other businesses started to offer services as a loss leader. So, the corner store may offer notary services, or maybe a bank or other business. They weren’t making money. They were just getting people in the door.
Heck, we know all about that. Sunshine offers static notary services in our office in Hudson, Florida. And while they are here, they get to find out all about our other wonderful notary services.
Market Rates in Massachusetts
A Massachusetts notary had enough.
Massachusetts law was codified in 1836! How much inflation do you think has happened since then? Under most documents, he was only allowed to charge $1.50. That’s the price of a candy bar today! (and not even the king size)
State law bars notaries for charging more than $1.25 per document, but that he and his wife were charged $10 a document, so he wants his money back
Universal Hub
Now, was the $1.25 for every document? Or even correct? The court said it was not. That this was a misunderstanding of the law. One that needs to be fixed.
The important part here is the court affirmed the right of the notary to charge market values.
Why Have a Lawyer When You Can Have a Historian?
The rest of the case revolved around changes in society since 1836. Arguments over language. It appears common English spoke in the United States has evolved since then.
Go figure, huh?
So, once the historians had their say and explained to everyone what the law may have meant when they wrote it in 1836, the notary prevailed, even if the court said it was a misinterpretation.
A very important misinterpretation that took historians to attempt to parse. Note to lawmakers. If it takes a historian to tell you what a law may or may not mean, maybe it is time to update or scratch that law altogether.
It depends on what your definition of “is” is.
But, why don’t we instead focus on the important takeaway.
The Massachusetts Supreme Court ruled/affirmed that notaries may charge fair market prices.
New Notary Technology
So, why is this important to today’s mobile and online notaries? It does not affect the daily operations of your business.
Or does it?
Since mobile and online notaries offer services beyond notarization, prices charged are already at market price. Some might say that technology has helped us move on from 1836.
But, there are a couple of positive takeaways.
Mobile and online notaries are less likely to be subject to future draconian laws themselves. What if you were told you could only charge $25 for a mobile signing for the next 200 years?
Can anyone say conniption fit?
The other side is that it could make you more competitive in the market.
A Possible Market Rate Example
Why don’t we look at the corner store? They may now charge $20 for a document they used to charge, let’s say, $8 for.
You cannot compete with $8. You probably don’t even want to try, which is why you looked for more lucrative areas of the notary business to begin with.
But, at $20, you may be able to compete. It may give you access to a market you could not touch before. You offer convenience that cannot be matched, especially when you can charge competitive pricing.
And being more competitive in the market is never a bad thing.
Your Nationwide Notary Signing Service
Increase your efficiency and bottom line with Sunshine’s Mobile Notary Services and Online Notary Services. Sunshine is always there when you need us.
Or Call us at (727) 817-0000
In Person Notaries Still in High Demand
In person notaries are still in high demand, as demand exceeds supply months into the pandemic.
It may be a surprising find as the pandemic seemed to indicate a light speed move to online signings. But, the opposite has happened.
As in person notaries have declined, both mobile and static, the demand for them has increased as the housing market has come back to life.
The Big Banks Control Online Signings
The banks are known to be conservative and slow moving. I mean, who still uses faxes?
But, at the beginning of the year it seemed the move towards remote online notarizations was gaining steam. Steam that would change the industry.
Steam that might just replace in person notaries with online ones.
And while it seemed the pandemic would only accelerate that, it has actually slowed the process down, leaving high demand for in person notaries.
Why?
As the market rebounds from COVID-19 closures, one symptom of this inertia has emerged: lenders are being flooded with a rising volume of mortgage applications, and notary availability is at an all-time low.
National Mortgage News
A Rapidly Changing Marketplace
Let’s start by looking at work from home.
First the banks had to switch to work from home. This wasn’t an easy process, as larger banks had hundreds of thousands of employees to move. It was not easy. They had to do things like:
- Get supplies
- Train employees
- Expand IT operations and invest huge amounts in new equipment
- Adapt their culture to the new situation
- Find and perfect new technology use for meetings
- Route phone lines all over the place
- Ensure everyone had consistent internet access
Work from home was made to sound easy, but the effort involved was massive. Compounding that, with everyone working from home, as well as virtual schooling, many areas just did not have the internet backbone to handle it.
That seems to have leveled off now, but large ISPs took months investing in new infrastructure to meet the heightened demand.
A Change in Focus
These times have caused the banks to repeatedly have to change focus.
A great example are PPP loans.
With a housing slowdown, why not start making new government backed loans? It’s a no brainer.
But, there is always a downside.
Making the loans is one thing. Keeping up with every detail, not so easy. Of interest is the myriad of tax rules that have to be met. But, the loans had to be made quickly, so it created its own issues.
Mortgage professionals aren’t exactly IRS agents, so the training is intensive, and even then, in some cases, a mountain too high to climb in such a short time.
Collections Behind the Eight Ball
Along with the downturn obviously came a dent in revenue stream. From people who were unable to pay, people who were able to defer payments or interest, as well as a few who took advantage of the situation.
As the moratoriums expire the big banks have also started to shift to collections and foreclosures. There is no need to go into depth here, but the same pattern applies.
- More shifting of personnel
- More training, online (not ideal for many)
- A changing focus of company divisions.
Why Does this Increase Demand for In Person Notaries?
Simply put, most of the large banks have their hands full. And that has increased demand for in person notaries at a time when supply has waned as many notaries have shunned signings.
Notaries are in high demand but short supply. Data from April 2020, notaries not accepting signings for 15 or more days increased 1,225% compared to April 2019.
National Mortgage News
Efforts to look at online signings have dissipated as that attention has had to be focused into other areas.
It was already hard to look at online closings with the mish-mash of rules, both permanent and temporary, the massive amount of training and implementation into current processes.
And now the market has been focused into other areas.
In the long term, online closings are still inevitable in many markets. But, for the foreseeable future, the demand for in person notaries looks to remain quite healthy.
Your Nationwide Notary Signing Service
Increase your efficiency and bottom line with Sunshine’s Mobile Notary Services and Online Notary Services. Sunshine is always there when you need us.