No Copies for the Borrower - What about the RTC?

Through NAMELESS Signing Service.com (for whom I do continue to work for a fee less than my usual base) NAMELESS Title sends me jobs. These are usually sub-prime lender loans.

If they are overnight docs, they send one original only - no copy, but usually they are email docs. I get $25 for the edocs. For $25, I always assume 2 copies need to be printed. The instructions say to print one copy only and that the title company will send the copy of the signed copy post signing.

I have a problem with this practice. I have decided that the way to handle this is to make the copies on my own dime or don't take any more of the NAMELESS Title signings through NAMELESS SIGNING COMPANY . If I need to make an extra copy of the package, I will do so--at my own expense. I have advised NAMELESS SIGNING COMPANY of this.

NAMELESS SIGNING SERVICE is a good outfit even if they pay lower than my normal fee. I have queried them about the following and have advised them that in my opinion they are setting up the signing appointment to fail.
-What if the signer or the notary errs on the DOT? There is no extra copy to fix the error.
-What if the signer will not sign because they have no copy to review?
-Isn't this taking away the benefit of the Right to Cancel? How can the notary point to it and say the borrower can change their mind?

NAMELESS SIGNING SERVICE has kind of mumbled that maybe I should make a copy of the "important" documents but I am not required to. To which I queried back, why not the whole package? How am I, a mere notary, supposed to decide what is important and what is not?

Personally, I feel this is an unethical, if not illegal, practice being perpetrated upon sub-prime lending borrowers by title companies who are doing all they can to avoid rescissions. I'd say that 90% of the time, title companies do not get paid when a deal falls through.

This no copy scenario tells me that some title companies are barely making a profit, or they would not be pulling a stupid stunt like this.

There are probably one or two people up the ladder who are getting a good bit of profit off the top, but these will fold up one day and leave signing services like NAMELESS SIGNING SERVICE holding the bag. I think even NAMELESS Title Companymay see some branch closings. And, has NAMELESS SIGNING SERVICE been charging enough to stay afloat if that happens? Can they pay their notaries? We'll see. I don't think they can. Not when they are taking certain jobs for $25 to $50 over what they pay notaries and doing such a large volume at the same time.

The last NAMELESS SIGNING SERVICE for NAMELESS Title I did was through NAMELESS Funding. The loan was the very worst I have ever seen. It was an ARM with a prepayment penalty within two years. The scumbag LO called during the signing and advised the borrower not to worry, he'd have them out of it in one year. You betcha. nd, the borrower will pay around $4500 in prepayment fees. If I had not had a copy to leave them to read before I left, I could not have slept that night.

I also feel this practice is putting notaries into a bad position. Why?

(1) Many times the loan documents state that the copy has been provided. Yes, of course, I realize we are too stupid to read documents and interpret them. And, I also understand we are not to interpret law, but the consumer law is clear on the delivery of the copies. Texas Business and Commerce Code 39 addresses this. (I have copied and posted the section below. Scroll down to read.)

(2) It sets us up for a long closing that takes forever because the borrowers want to read every word. Then, they still may not sign without copies.

(3) It makes for bad relations between notaries and signing services. Notaries naturally feel it is their job to provide a copy and then they get upset with the signing service for not providing an edoc or copy fee post signing appointment or post fee agreement. The signing service cannot put another $25 onto a pre-negotiated fee and cut their own profit.

So, what's the answer?

For me, I will keep doing what I feel is right. Even if the title company does not want the copy to go, the signing service will be advised that I will make a copy. If that poses a problem, we are through doing business together.

I won't expect a title company or a signing service to support my beliefs on what I think is right. I'll only take these types of signings as long as I am willing to make the copy for free. When that is no longer possible, I will quit taking the assignments.

And, when too much of this kind of thing becomes the accepted way things are done, I will be gone.

I think there's more than one way to have self-employment. Signings are not the only way. I am not sure what the answer is just yet, but I feel confident about the future and my abilities. I truly believe that thinking out of the box is the key.

The guy who started a huge business with his condense milk did not hit his winning homerun until he was around 55-60 years old. Before Gail Borden started condensing milk which lead to "Borden's" as we know it today, he actually worked on a huge machine that would "walk" across Galveston Bay to transport people from the mainland to Galveston Island. He also tried making a hard biscuit type of thing to sustain enlisted men. The biscuit did not do well even though some thought it was ingenious.

Maybe the notary signing business is simply our "hard biscuit" and our condensed milk project is just around the corner!

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To read more about Gail Borden go here:
http://www.smithsonianmag.si.edu/smithsonian/issues99/sep99/object_sep99.html

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BUSINESS & COMMERCE CODE
CHAPTER 39. CANCELLATION OF CERTAIN CONSUMER TRANSACTIONS
Sec. 39.001. DEFINITIONS. In this chapter:
(1) "Consumer" means an individual who seeks or acquires real or personal property, services, money, or credit for personal, family, or household purposes.
(2) "Consumer transaction" means a transaction in which one or more of the parties is a consumer.
(3) "Merchant" means a party to a consumer transaction other than a consumer.
(4) ""Merchant's place of business" means a merchant's main or permanent branch office or local address. For a state or national bank or savings and loan association, the term includes any approved branch and any registered loan production office.
Added by Acts 1997, 75th Leg., ch. 1008, Sec. 3, eff. Sept. 1, 1997.
Sec. 39.002. APPLICABILITY OF CHAPTER. (a) This chapter applies only to a consumer transaction in which the merchant or the merchant's agent engages in a personal solicitation of a sale to the consumer at a place other than the merchant's place of business, and the consumer's agreement or offer to purchase is given to the merchant or the merchant's agent at a place other than the merchant's place of business:
(1) for the purchase of goods or services for consideration that exceeds $25 payable in installments or in cash; or
(2) for the purchase of real property for consideration that exceeds $100 payable in installments or in cash.
(b) Notwithstanding Subsection (a), this chapter does not apply to:
(1) a purchase of farm equipment;
(2) an insurance sale regulated by the Texas Department of Insurance;
(3) a sale of goods or services made:
(A) under a preexisting revolving charge account or retail charge agreement; or
(B) after negotiations between the parties at a business establishment at a fixed location where goods or services are offered or exhibited for sale; or
(4) a sale of real property if:
(A) the purchaser is represented by a licensed attorney;
(B) the transaction is negotiated by a licensed real estate broker; or
(C) the transaction is negotiated at a place other than the consumer's residence by the person who owns the property.
Added by Acts 1997, 75th Leg., ch. 1008, Sec. 3, eff. Sept. 1, 1997.
Sec. 39.003. CONSUMER'S RIGHT TO CANCEL. In addition to any other rights or remedies available, a consumer may cancel a consumer transaction to which this chapter applies not later than midnight of the third business day after the date the consumer signs an agreement or offer to purchase.
Added by Acts 1997, 75th Leg., ch. 1008, Sec. 3, eff. Sept. 1, 1997.
Sec. 39.004. NOTICE BY MERCHANT. (a) A merchant must provide a consumer with a complete receipt or copy of any contract pertaining to the consumer transaction at the time of its execution.
(b) The document provided under Subsection (a) must:
(1) be in the same language as that principally used in the oral sales presentation;
(2) show the date of the transaction;
(3) contain the name and address of the merchant; and
(4) contain in immediate proximity to the space reserved in the contract for the signature of the consumer, or on the front page of the receipt if a contract is not used, a statement in bold-faced type of a minimum size of 10 points in substantially the following form:
"YOU, THE BUYER, MAY CANCEL THIS TRANSACTION AT ANY TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DATE OF THIS TRANSACTION. SEE THE ATTACHED NOTICE OF CANCELLATION FORM FOR AN EXPLANATION OF THIS RIGHT."
(c) The merchant must attach to the document provided under Subsection (a) a completed notice of cancellation form in duplicate. The form must:
(1) be easily detachable;
(2) be in the same language as the document provided under Subsection (a); and
(3) contain the following information and statements in 10-point bold-faced type:
"NOTICE OF CANCELLATION
(enter date of transaction)
"YOU MAY CANCEL THIS TRANSACTION, WITHOUT ANY PENALTY OR OBLIGATION, WITHIN THREE BUSINESS DAYS FROM THE ABOVE DATE.
"IF YOU CANCEL, ANY PROPERTY TRADED IN, ANY PAYMENTS MADE BY YOU UNDER THE CONTRACT OR SALE, AND ANY NEGOTIABLE INSTRUMENT EXECUTED BY YOU WILL BE RETURNED WITHIN 10 BUSINESS DAYS FOLLOWING RECEIPT BY THE MERCHANT OF YOUR CANCELLATION NOTICE, AND ANY SECURITY INTEREST ARISING OUT OF THE TRANSACTION WILL BE CANCELLED.
"IF YOU CANCEL, YOU MUST MAKE AVAILABLE TO THE MERCHANT AT YOUR RESIDENCE, IN SUBSTANTIALLY AS GOOD CONDITION AS WHEN RECEIVED, ANY GOODS DELIVERED TO YOU UNDER THIS CONTRACT OR SALE; OR YOU MAY IF YOU WISH, COMPLY WITH THE INSTRUCTIONS OF THE MERCHANT REGARDING THE RETURN SHIPMENT OF THE GOODS AT THE MERCHANT'S EXPENSE AND RISK.
"IF YOU DO NOT AGREE TO RETURN THE GOODS TO THE MERCHANT OR IF THE MERCHANT DOES NOT PICK THEM UP WITHIN 20 DAYS OF THE DATE OF YOUR NOTICE OF CANCELLATION, YOU MAY RETAIN OR DISPOSE OF THE GOODS WITHOUT ANY FURTHER OBLIGATION.
"TO CANCEL THIS TRANSACTION, MAIL OR DELIVER A SIGNED AND DATED COPY OF THIS CANCELLATION NOTICE OR ANY OTHER WRITTEN NOTICE, OR SEND A TELEGRAM, TO (name of merchant), AT (address of merchant's place of business) NOT LATER THAN MIDNIGHT OF (date).
I HEREBY CANCEL THIS TRANSACTION.
(date)
(buyer's signature) "
(d) The use of the forms and notices of the right to cancel prescribed by the Federal Trade Commission's trade-regulation rule providing a cooling-off period for door-to-door sales constitutes compliance with this section.
(e) A consumer transaction in which the contract price does not exceed $200 complies with the notice requirements of this section if:
(1) the consumer may at any time cancel the order, refuse to accept delivery of the goods without incurring any obligation to pay for them, or return the goods to the merchant and receive a full refund of the amount the consumer has paid; and
(2) the consumer's right to cancel the order, refuse delivery, or return the goods without obligation or charge at any time is clearly and conspicuously set forth on the face or reverse side of the sales ticket.
Added by Acts 1997, 75th Leg., ch. 1008, Sec. 3, eff. Sept. 1, 1997.
Sec. 39.005. MERCHANT'S COMPENSATION. A merchant is not entitled to compensation for services performed under a consumer transaction if the consumer cancels the transaction under this chapter.
Added by Acts 1997, 75th Leg., ch. 1008, Sec. 3, eff. Sept. 1, 1997.
Sec. 39.006. RETENTION OF GOODS OR REAL PROPERTY. Until a merchant has complied with this chapter, a consumer with possession of goods or right or title to real property delivered by the merchant:
(1) may retain possession of the goods or right or title to the real property; and
(2) has a lien on the goods or real property to the extent of any recovery to which the consumer is entitled.
Added by Acts 1997, 75th Leg., ch. 1008, Sec. 3, eff. Sept. 1, 1997.
Sec. 39.007. DUTY OF CONSUMER. (a) Within a reasonable time after a cancellation under this chapter, the consumer on demand must tender to the merchant any goods or right or title to real property delivered by the merchant under the consumer transaction.
(b) The consumer is not obligated to tender goods at a place other than the consumer's residence.
(c) If the merchant fails to demand possession of the goods or the right or title to real property within a reasonable time after cancellation, the goods or real property become the property of the consumer without obligation to pay.
(d) Goods or real property in possession of the consumer are at the risk of the merchant, except that the consumer shall take reasonable care of the goods or the real property both before and for a reasonable time after cancellation.
(e) For purposes of this section, 20 days is presumed to be a reasonable time.
Added by Acts 1997, 75th Leg., ch. 1008, Sec. 3, eff. Sept. 1, 1997.
Sec. 39.008. VIOLATIONS. (a) A merchant may not:
(1) fail to include on both copies of the form described by Section 39.004(c):
(A) the name of the merchant;
(B) the address of the merchant's place of business;
(C) the date of the transaction; and
(D) a date not earlier than the third business day after the date of the transaction by which the consumer must give notice of cancellation;
(2) include in a contract or receipt pertaining to a consumer transaction a confession of judgment or a waiver of any of the rights to which the consumer is entitled under this chapter;
(3) at the time the consumer signs the contract or purchases the goods, services, or real property, fail to inform the consumer orally of the right to cancel the transaction;
(4) misrepresent in any manner the consumer's right to cancel;
(5) negotiate, transfer, sell, or assign any note or other evidence of indebtedness to a finance company or other third party before midnight of the fifth business day after the date the contract was signed or the goods or services were purchased;
(6) fail to notify the consumer before the end of the 10th business day after the date the merchant receives the notice of cancellation whether the merchant intends to repossess or to abandon any shipped or delivered goods; or
(7) fail or refuse to honor a valid cancellation under this chapter by a consumer and fail before the end of the 10th business day after the date the merchant receives the notice of cancellation to:
(A) refund all payments made under the contract or sale;
(B) return any goods or property traded in to the merchant in substantially the same condition as when received by the merchant;
(C) cancel and return any negotiable instrument executed by the consumer in connection with the contract of sale;
(D) take any action appropriate to terminate promptly any security interest created in the transaction; or
(E) restore improvements on real property to the same condition as when the merchant took title to or possession of the real property unless the consumer requests otherwise.
(b) A sale or contract entered into under a consumer transaction in violation of Subsection (a) is void.
(c) A merchant who violates a provision of this chapter is liable to the consumer for:
(1) any actual damages suffered by the consumer as a result of the violation;
(2) reasonable attorney's fees; and
(3) court costs.
(d) If the merchant fails to tender goods or property traded to the merchant in substantially the same condition as when received by the merchant, the consumer may elect to recover an amount equal to the trade-in allowance stated in the agreement.
(e) A violation of this chapter is a false, misleading, or deceptive act or practice as defined by Section 17.46(b). In addition to any remedy under this chapter, a remedy under Subchapter E, Chapter 17, is also available for a violation of this chapter.
Added by Acts 1997, 75th Leg., ch. 1008, Sec. 3, eff. Sept. 1, 1997.
Sec. 39.009. INJUNCTION. If the attorney general believes that a person is violating or about to violate this chapter, the attorney general may bring an action in the name of the state to restrain or enjoin the person from violating this chapter.
Added by Acts 1997, 75th Leg., ch. 1008, Sec. 3, eff. Sept. 1, 1997.

(Note: Thanks to a California notary “D” for bringing this section of the Tx. Bus. & Commerce Code to my attention.)