|
HOUSING RESOURCES FOR SINGLE MOTHER
National Notary Association Issues
Consumer Tips to Protect Against Mortgage
Fraud
by
www.NationalNotary.org
Running Low? How Would You Like FREE* Gasoline for One Year?
Buying a house
is usually one of the most joyous purchases
in a person's life. With the increased
risks of mortgage fraud, this ebullient
moment can quickly be offset by the
national-wide problem with mortgage fraud.
Through the first nine months of 2004,
mortgage companies and banks have reported
more than 12,100 instances of suspicious
activity compared with only 4,220 in 2001.
(Source:
<http://asia.news.yahoo.com/040917/ap/d855h7ig0.html>)
Due to the
five-fold increase in mortgage fraud over
the past three years, the National Notary
Association (NNA) has been asked by the
Federal Bureau of Investigation (FBI) to
inform their mortgage fraud investigators on
the Notary's role in deterring, detecting,
and prosecuting forgery and other forms of
identity crimes.
FBI and NNA collaborate on the heels of FBI
warning that mortgage fraud has become
"epidemic"
Los Angeles,
California (October 20, 2004)
-In
response to a five-fold increase in mortgage
fraud over the past three years, the Federal
Bureau of Investigation has asked the
National Notary Association (NNA) to inform
all FBI mortgage fraud investigators on the
role of the Notary Public in deterring,
detecting, and prosecuting forgery and other
forms of identity crimes. To assist with
the FBI's consumer protection efforts, the
NNA has also published a list of "Tips
to Protect Yourself From Mortgage Fraud at
Closing."
The tips alert consumers to areas
susceptible to mortgage fraud.
Mortgage fraud
has become a significant problem nationwide,
and has the potential to rival the country's
S&L crisis of the 1980's, according to
Assistant FBI Director Chris Swecker, who
heads the FBI's Criminal Division in
Washington D.C. (source:
http://www.cnn.com/2004/LAW/09/17/mortgage.fraud/)
Notarization is an effective weapon against
mortgage fraud because it verifies identity,
proves willingness and awareness on the part
of the signer, authenticates signatures, and
creates an auditable evidence trail for
prosecution. In addition, the notarial seal
is an authenticating tool that is used by
law enforcement in detecting cases of
document tampering.
The NNA, the
nation's leading professional organization
dedicated to the promotion and support of
Notaries, has issued a five-page document
which has been distributed to every FBI
officer in the field. The document
describes the use of notarization in
document authentication. The document also
reminds officers that notarizations are
readily available to law enforcement
agencies as part of ongoing criminal
investigations.
"We view our
NNA notaries as 'Guardians of Property
Rights' because they are uniquely suited to
protect consumers and businesses from fraud
through their roles as professional identity
screeners and impartial witnesses" said Tim
Reiniger, Executive Director of the NNA.
"Our Notaries are trained and have access to
the most up to date information on proper
documentation and witnessing. Working with
a Notary gives a consumer the security and
peace of mind that his/her property and
identity rights are being protected."
The NNA is
often called on to explain and promote
Notarial Best Practices to industry and law
enforcement. The NNA's "Model Notary Act"
has formed the basis of Notarial laws and
statutes across the country. More
information on the role of the Notary in
protecting against mortgage fraud, including
the NNA's Model Notary Act and consumer
alert warning "Tips
to Protect Yourself From Mortgage Fraud at
Closing"
can be found on the NNA's website at
www.NationalNotary.org.
TIPS TO PROTECT YOURSELF FROM MORTGAGE FRAUD
AT CLOSING
1) Start on the right foot. Make sure
the name on your application matches the
name on your primary form of
identification. The notarization at the
closing table may be delayed, and possibly
denied, if these names don't match.
2) Know and understand the terms of
your mortgage. Bring all your loan
information with you to the closing so that
you can compare the list of loan terms, the
loan type and the interest rate information
on the documents with the loan terms that
you agreed to when the documents were
drawn.
3) Be prepared. Don't assume that
your lender has captured all of your
personal information accurately. Check your
application information against the final
loan documents to ensure that the
information is correct and complete.
4) Never sign any loan documents that
contain blanks. The documents should not be
notarized if there are blanks. Blanks in
your document make you vulnerable to fraud.
5) Know your right of rescission
period and if it applies to your loan. If
you have a rescission period you will have
three days in which to cancel the deal.
Understand that if you exercise your right
to rescind, there may be other risks you
hadn't anticipated, like losing your locked
in mortgage rate.
6) Know what you're signing. The
Notary's role is to be an impartial,
third-party witness. Notaries know very
little about the contents of your loan
package and will not be able to answer
questions related to the specifics of your
loan. If you have any concerns about your
loan, these should be clarified with your
loan officer before you sign your documents.
7) Make sure that you and your Notary
are in the same room at the same time when
the document is being signed. You must
appear in person in front of a Notary to
have your signature notarized, even if the
documents have been exchanged electronically
throughout the process.
8) Work only with a Notary who can
communicate directly with you in your own
language. Do not depend on an interpreter
who may have a motive for misrepresenting
the document. Ask for a bilingual Notary if
you speak a language other than English.
9) Use a professional Notary who has
been trained by the National Notary
Association and keeps current on important
developments in fraud prevention and
detection through NNA membership. It is
risky to rely on an untrained Notary.
|
