All loan signing agents are notaries but not all notaries are loan signing agents. In this blog learn more about the differences between a loan signing agent and a Notary public. There are almost 4.4 million notaries present in the United States. But how are they different from one another,and their roles vary vastly from one another.
Here’s a clear look on discussing how they differ from one another.
What is a loan Signing Agent or an LSA?
Notaries or LSA’s provide essential services for legal transactions. A LSA is a notary who has taken additional training specifically for taking care of real estate and loan documents. Although they do perform a few basic duties as a notary service. They go a step further by guiding borrowers through complex loan packages.
These packages often include mortgage documents, refinancing documents, and also closing disclosures. Loan signing agents ensure that all documents are properly signed,dated and are up to the mark before they are returned to the titled companies or the lenders.
Who is a Notary Public?
A notary public is a state commissioned official authorised to verify identities, witness signatures and help in deterring fraud. The role is pretty straight, make the person sign the document who they claim to be and sign willingly.
Notaries happen to go through a lot of documents, affidavits, power of attorney forms and also other simple agreements. The scope of work is generally limited to just verifying and applying the seal.
What is the key difference between LSA and Notary?
As it was being discussed previously on the blog all signing agents are notaries but not all notaries are LSA’s. A notary’s role is quite general so they are required to handle many types of documents. LSA however only specialises on focusing loan and mortgage paperworks, which is more detailed and information sensitive.
Like notaries, LSA’s cannot offer legal advice or explain the document in detail. Their only role is to assist in the final stage of the loan by ensuring documents are properly signed and handled properly. Since they deal with private financial information, LSA’s must pass background checks every year so as to protect their clients better.
Like notaries, LSA’s cannot offer legal advice or explain the document in detail. Their only role is to assist in the final stage of the loan by ensuring documents are properly signed and handled properly. Since they deal with private financial information, LSA’s must pass background checks every year so as to protect their clients better.
How Loan Signing Agents Take Notarization Online
During Pandemic, in person requests declined while the demand for real estate grew. This led to a sharp rise of Remote Online Notarization. As more states allow it more, online notarization has become a long term solution rather than a temporary fix.
Loan Signing Agents or LSA’s who are authorised for RON meet with their borrowers through secure platforms on the internet. From identity verification to signing the entire process takes place online. This removes all the need of hard copying or meeting in person. Making the process faster and convenient.
Here the some key benefits of RON
Peak Efficiency : Borrowers can sign documents from the comfort of their home, avoiding travel and scheduling issues.
Enhanced Security : Digital tools are better in verification than just manual checks. They are less faulty. Thus helping in reducing fraud.
Less Errors: Online platforms also help in preventing real time mistakes such as missing out information and signatures.
Conclusion
Although the foundation of LSA’s and notaries are that of the same, their roles serve different needs of the public. Notaries and LSA’s have their very specific lanes especially LSA’s who deal in the matter of finance. With the rise of RON, the services have become convenient, secure and efficient. Whether in person or online, having the right professional ensures a smooth experience.
