Notary Bulletin

Deficient Bank Documents Over Loan Ownership Prove Beneficial For Borrowers In State Court

Deficient documentation over mortgage ownership is causing a mess for financial institutions in state courts and, as a result, borrowers in a number of states have won recent court rulings over foreclosure actions.

At issue is shoddy paperwork and practices that have muddied the water over which financial institution actually owns specific mortgages. In a recent foreclosure case in Alabama, the Court of Civil Appeals ruled in favor of a borrower when the lender could not provide documentation of ownership of the loan.

And in Nevada — a state that has been a hotbed of litigation in the foreclosure crisis — several cases have been found in favor of borrowers because financial institutions could not prove they actually owned the mortgages.

This raft of litigation has financial institutions working to ensure their Notary employees and supervisors adhere to proper notarial practices throughout the foreclosure process.

“More and more financial institutions are recognizing the importance of sound notarization in mortgage and real estate transactions,” said Chris Sturdivant, Business Development Executive at the National Notary Association. “By verifying the identity of signers, screening for willingness and awareness, and following all proper notarial procedures, companies will reduce their exposure to costly and disruptive lawsuits.”

Professional Sections

NSA and Small Business
Healthcare Professionals
Legal Professionals
Financial and Corporate Services
Immigration
International

Quiz: The Many Types Of Notarial Acts

Notaries perform many different duties for the public — and it’s easy to lose track of the different acts and what states they’re authorized in. Test your familiarity with common — and uncommon — notarial acts.

(A link to the correct answers is provided at the end of the quiz.)

Confronted with a tricky notarization? Unsure how to proceed? NNA members have unlimited access to our expertly trained Hotline counselors to help you with all of your notarial questions.

(888) 876-0827

Monday through Friday:
5 a.m. to 7 p.m. PST

Saturdays: 5 a.m. to 5 p.m. PST

© 2014 National Notary Association. All rights reserved . Privacy Statement . Copyright Statement
National Notary Foundation . Returns . About Us . Contact Us . Feedback