People often mix up notary signing agents vs notary public. The United States has about 4.4 million notaries, but only a small number work as loan signing agents. Both professionals verify documents, but loan signing agents can notarize specialized loan documents like mortgages and refinancing agreements. A standard notary public lacks this authority.
The earning potential sets these roles apart. Loan signing agents earn $50 to $200 per assignment. Some even charge up to $200 for complex transactions. This substantial pay difference exists because loan signing agents exclusively handle loan documents and need specialized training and certification. Loan signing agents must also pass strict yearly background checks to keep their credentials, since they handle sensitive financial information.
This piece breaks down these distinct roles, explains a notary signing agent’s duties, and helps you choose the right service. The information here will guide your decisions, whether you’re exploring a notary career or just need document services. For professional notary and loan signing services, visit PDX Signing.
What is a Notary Public and What Do They Do?
A notary public is a state-appointed official who witnesses document signings. They work as unbiased witnesses who verify documents and help prevent fraud. Their main goal involves proving the signer’s identity and making sure people sign documents willingly and knowingly.
Common documents notarized by notaries
Notaries handle legal documents of all types that need official verification:
- Acknowledgments for deeds, mortgages, and trusts
- Jurats were signers who swore to the truthfulness of the document’s contents
- Affidavits and depositions
- Powers of attorney for financial or healthcare decisions
- Real estate contracts and property deeds
- Loan documents for various transactions
The notary checks the signer’s identity through a government-issued photo ID. They watch as the person signs and then place their official seal or stamp on the document.
Legal limitations and responsibilities
Notaries must follow strict rules about what they can and cannot do. They must not:
- Perform notarial acts if the principal isn’t physically present
- Notarize documents where they have a direct financial interest
- Provide legal advice or document preparation services (unless also licensed as attorneys)
- Refuse service based on race, gender, religion, or nationality
- Notarize incomplete documents or documents with blank spaces
- Use correction fluid or allow document alterations
The law can hold notaries responsible for any misconduct or negligence that harms others.
Difference between a notary and a notary public
People often use these terms interchangeably, but there are subtle differences. “Notary” describes the general role or profession. “Notary public” refers to someone with an official commission to perform notarial acts. On top of that, it matters to know that in Latin American countries, a “notario publico” has much more legal power than U.S. notaries and usually works as an attorney. This is a vital difference, especially in states with large immigrant populations.
What is a Loan Signing Agent and How Are They Different?
Loan signing agents (LSAs) are specialized notaries who handle real estate transactions. These professionals have received extra training and certification to work with loan documents.
What does a notary signing agent do?
A loan signing agent makes the loan process official and helps get loans funded. They print loan documents, meet with signers to witness and notarize signatures, and return the completed paperwork. LSAs follow specific instructions from lenders or title companies. Their tasks include faxing documents and using special mailing services to return paperwork safely. LSAs go through yearly background checks because they see borrowers’ private financial information.
Real estate notary responsibilities
Notary signing agents protect buyers, sellers, and lenders from fraud in real estate deals. They spot and stop fraud by checking identities and making sure people sign documents willingly. These professionals do more than just notarize – they make sure loan documents are properly signed before being recorded in land records. Deeds, mortgages, deeds of trust, affidavits, and powers of attorney usually need notarization. LSAs must stay neutral throughout the process and never explain loan terms or answer questions about what’s in the documents.
Loan signing agent vs notary public: key differences
The main differences between these roles come down to expertise and what they can do:
- Training: LSAs need extra certification beyond a basic notary commission
- Industry knowledge: Signing agents know the ins and outs of loan documents and mortgage processes
- Document focus: Regular notaries work with many types of documents, while signing agents focus on loan paperwork
- Responsibility level: LSAs make sure documents are correctly executed and submitted on time, unlike regular notaries, who just verify identities and witness signatures
- Background checks: Loan signing agents must pass yearly screenings, but standard notaries don’t have to
So, while not all signing agents are notaries, not all notaries can work as signing agents.
Training, Certification, and Legal Requirements
The journey to become a notary public differs from becoming a loan signing agent. You need to be a notary first before you can become a signing agent.
Becoming a notary public: simple steps
You must meet some simple eligibility requirements to become a notary. These include being 18 or older, living legally in your state, and having a clean record without felony convictions. Each state has its process that usually needs:
- A completed application with fees ($20-$120 based on your state)
- State-approved education (21 states and DC require this)
- A state exam (26 states make this mandatory)
- Fingerprinting and background checks (states like California, Illinois, and Ohio need these)
- Your commission certificate
- Basic supplies (stamp, journal)
- Paperwork filing and an oath of office
Requirements vary significantly between states. Some states want detailed training, while others just need an application and a fee.
What is a loan signing agent certification?
Mortgage finance companies prefer r loan signing agent certification to meet the Consumer Financial Protection Bureau rules. This extra credential shows you are skilled at handling complex mortgage closings and has:
- Detailed training for loan document handling
- Training about preventing fraud
- Tests to prove you can handle real estate paperwork
- Learning about federal rules like TILA, RESPA, and GLBA
Most programs offer both training and testing. This helps signing agents build trust with their clients.
Background checks and compliance for LSAs
Loan signing agents handle sensitive financial data, so they face strict screening. The mortgage industry requires yearly background checks that look back ten years into federal, state, and county records. These checks look at:
- Your Social Security number
- Criminal history
- Driving records
- Sex offender registries
- Terrorist watchlist
A 25-point system determines if you qualify. Industry standards suggest LSAs should have at least $25,000 in errors and omissions insurance since claims against signing agents average around $14,000.
When to Use a Notary Public vs a Loan Signing Agent
Your choice between a notary public and a loan signing agent should match your document needs and how complex your transaction is. A clear understanding of their differences will help you save time and get your documents executed properly.
Simple legal documents vs real estate transactions
A regular notary public works well for simple legal documents like affidavits, powers of attorney, and standard contracts. These professionals check identities and witness signatures on documents. All the same, they face important limits—they can’t explain legal terms, offer legal advice, or prepare documents for signers.
Real estate transactions need specialized expertise. Lenders and title companies prefer working with Notary Signing Agents (NSAs) for loan closings that involve complex document packages with specific signing requirements. These transactions often contain sensitive financial details that require professionals who know mortgage documents and the closing process inside out.
Loan signing agent, Illinois, and state-specific rules
Illinois shows how state rules shape notarization needs. Any commissioned notary in Illinois can do signing agent work without extra licensing. The state might ask for attorney involvement in real estate closing transactions by custom or practice.
Illinois signing agents earn a median salary of $42,436, which reflects their specialized role. The law requires Illinois NSAs to keep a surety bond of $5,000-$30,000. While not required by law, E&O insurance makes sense for Illinois signing agents who handle sensitive financial documents.
Choosing the right service for your document type
Your document type will guide your final choice. Here’s a practical guide:
- Use a notary public for:
- Wills and trusts
- Affidavits
- Powers of attorney
- Business contracts
- Standard legal documents
- Use a loan signing agent for:
- Mortgage closings
- Refinance loans
- Home equity documents
- Real estate transactions
- Commercial loan documents
You’ll need a loan signing agent to handle loan documents and ensure everything meets requirements and gets properly notarized. Regular notaries work well for most other documents that need notarization.
Comparison Table
| Aspect | Notary Public | Loan Signing Agent |
| Core Role | An official appointed by the state government to act as an impartial witness | Specialized notary who handles real estate and loan documents |
| Specialization | General document verification and authentication | Specifically focused on loan and real estate transactions |
| Training Requirements | – Must be 18+ years old- State-approved education (in 21 states)- Pass state exam (in 26 states)- Initial commission | – All notary public requirements- Additional specialized certification- Loan document handling training- Federal regulations knowledge |
| Documents Handled | – Acknowledgments- Jurats- Affidavits- Powers of attorney- General contracts | – Mortgage documents- Refinancing agreements- Real estate transactions- Loan paperwork |
| Background Checks | A simple background check at the commission | Mandatory annual background screening |
| Typical Earnings | Not mentioned | $50-$200 per signing assignment |
| Main Responsibilities | – Verify signer identity– Witness signatures- Apply official seal- Prevent fraud | – Print loan documents- Meet with signers- Handle private financial information- Ensure proper document execution- Return completed paperwork |
| Insurance Requirements | Not mentioned | Recommended minimum $25,000 E&O insurance |
Conclusion
The difference between a loan signing agent and a notary public goes way beyond simple semantics. This piece explores how these two roles serve different purposes in the legal and financial world, even though they’re related.
Loan signing agents build their expertise on notary public certification. They go through specialized training and face stricter background checks because they handle sensitive financial information. Their specialized knowledge helps them earn $50 to $200 per assignment – this is a big deal as it means that they earn more than standard notary services.
Your document type should guide your choice of professional. A notary public is enough for regular legal documents like affidavits, powers of attorney, and standard contracts. You’ll need a loan signing agent’s expertise for real estate transactions, mortgage closings, and refinancing agreements.
Each state has its own rules that add complexity. Illinois lets any commissioned notary handle signing agent duties without extra licensing. Yet local practice often requires lawyers to be involved in real estate closings.
These differences matter whether you need documents notarized or want to pursue either career path. Both roles help our legal system by preventing fraud and making sure documents are authentic. Success depends on matching your needs with the right level of expertise. For professional notary and loan signing services, check out PDX Signing.
FAQs
Q1. What is the main difference between a notary public and a loan signing agent?
A notary public is a state-appointed official who verifies signatures on various legal documents, while a loan signing agent is a specialized notary who focuses specifically on handling real estate and loan documents.
Q2. How much can a loan signing agent typically earn per assignment?
Loan signing agents typically earn between $50 – $200 per assignment, depending on the complexity of the transaction.
Q3. Do loan signing agents require additional training beyond notary public certification?
Yes, loan signing agents need specialized certification in addition to notary public requirements. This includes training in loan document handling and knowledge of federal regulations related to real estate transactions.
Q4. When should I use a notary public versus a loan signing agent?
Use a notary public for general legal documents like affidavits, powers of attorney, and standard contracts. For real estate transactions, mortgage closings, and refinancing agreements, you should use a loan signing agent.
Q5. Are background checks more stringent for loan signing agents?
Yes, loan signing agents undergo mandatory annual background screenings due to their access to private financial information, while notary publics typically only have a basic background check at the time of commission.
