Michigan Hardest Hit Program - Day 1

Today was the first day of the Michigan Hardest Hit program. The program was designed to pay $5,000 to $10,000 toward the mortgages of up to 17,000 homeowners that are expected to qualify. It offers mortgage-payment assistance for those receiving unemployment benefits, funds for homeowners who have fallen behind on mortgage payments because of a temporary layoff or medical emergency, and matching funds for principal reductions for homeowners who can't afford mortgage payments because their income was cut. That's the good news. The bad news? The program is completely voluntary for lenders, and as of now major lenders such as Bank of America and Citibank have not committed to the program.

A list of participating lenders here.

Bernanke Urges Banks To Lend To Small Businesses - Think They'll Listen?

Speaking at a conference on small-business financing, Federal Reserve Chairman Ben Bernanke said that extending and increasing credit to sound small businesses is crucial to our economic recovery. The issue "should be front and center among our current policy challenges." Bernanke also believes that "we need to find ways to ensure that creditworthy borrowers have access to needed loans." I have a feeling that his words are falling on deaf ears.

HubSpot Blog, a wonderful blog I've just discovered about how to market your services on the Internet, just posted a FREE eBook called "2010 Online Marketing Blueprint: A Multimedia Guide to Growing Your Business Online." The 26 page eBook provides instructions, how to videos, and links to other resources. Topics include:

How to establish a keyword strategy

Tips for leveraging social media to promote content online

Search engine optimization (SEO) basics

Tips for converting website visitors into leads

Email marketing best practices

Important website metrics to measure and track visitors


The guide is full of great tips. You can view it online (there's a button underneath the eBook that allows you to view the guide full screen) or you can download it after providing contact information.

The Versatility Of A Notary Seal

Last night after a very late closing, I attempted to enter my house using the keypad on my attached garage. My code would not work. I tried 30 times with no success. Now normally this wouldn't be a problem. My car has a button that opens my garage door and my key chain has a key to my front door. Except my car is in the shop for repairs so no button and no key with me! Drats! Call to my best friend at 11 p.m., "did I give you a spare key to my house?" "No." Drive 20 minutes to my parent's house, no key either. Back to my house, try the pad 10 more times, no luck. My solution? I grabbed my notary seal from my bag and decided I was going to smash my garage window with it. Hey, it has a handle, it's metal, it would do the trick. As I fired myself up for the break in, I decided to try the keypad one last desperate time. To my complete shock, my garage door decided to open. Once inside, I was able to reset my code. Whew. Glad it didn't come to that, but good to know that there are other possible uses for a notary seal.

Back To The Beginning - Marketing 101

I believe that marketing your notary signing business is an ongoing process. I'm always keeping an eye out for opportunities to grow my services with other companies. But whether you're a signing agent, a mortgage broker, a title company, or a Realtor, you know it's been a challenge trying to stay afloat and stay busy in these difficult times. Like most others in this industry, my volume isn't what it once was.

So, I recently decided to go back to the beginning. When I started as a notary signing agent, marketing was a full-time job. I contacted hundreds of title companies and signing services, I listed my services anywhere that I could think of, I called, wrote, emailed, and knocked on any door I could to drum up business. I networked and I asked for referrals. But after about six months of heavy marketing, I was able to focus almost all of my time and energy on handling closings. For seven years, my marketing has been about maintenance. But for the last few months, I've felt the need to do more. If you've seen your business slow down as well, maybe my plan of attack can help you too.

For starters, I felt it was important to remind my current clients that I greatly appreciated their business. You can never go wrong with simple, personal, handwritten thank you cards. Every one of my clients called or emailed me to say thanks.

Next, I made sure to update and freshen up my profile at the different sites I list my signing business. Nothing says "out of business" more than a profile that hasn't been updated in a year.

Sometimes I'm so focused on this blog that I forget that it's also important to participate in other places. Working by yourself, working from your home, it becomes so easy to isolate yourself. Forums like those at Notary Rotary, 123 Notary, and Notary Cafe are great for networking, being a part of the community, and just making yourself visible. So, I've increased my activity a little at a few of these sites and will continue to do so. I encourage everyone to do the same.

Here in Michigan, many purchase closings are "split closings." The buyer and the seller are both represented at the closing table by their own title company. It can make for some, um, interesting challenges. But it's also an opportunity to shine in front of another title company. If the other closer is an employee of the title company, I'm extra motivated to make a great impression. And after the closing, I make it a point to find out if they ever use contract closers. This has recently provided me with an exciting potential lead (fingers crossed).

And if the other closer is also a contract closer, it can still be an opportunity. Most contract closers that handle these split closings are the cream of the crop. There's just too much potential for disaster with an inexperienced, unprepared closer. So it can be an outstanding learning tool to watch how other quality closers handle their signings. I feel like I'm always learning something. Conversely, I did recently have the misfortune of sitting across from a closer that was sadly and painfully over their head. In that case, I later contacted that title company to offer my services as a contract closer. And no, I would not and did not mention that I watched one of their closers go up in flames. It should NEVER be about anything except what you can do for them.

Next, I browsed the forums for companies that have gotten positive feedback or that are actively looking for notary signing agents. I signed up with about 10 new companies in the last three to four weeks (at MY fees). I also followed up with companies that I signed up with in the past that have never called me for a signing. Two have already used me.

Finally, in all the above cases, I made it a point to emphasize what I think is a unique selling point for using my services. The Michigan Notary Network. Not only did I offer my services as a notary signing agent, I also stressed the fact that if I wasn't available for a closing, I could provide them with the name of another experienced, quality signing agent in the Metro Detroit area that could. Florida, Texas, California, Wisconsin, and Ohio all have networks. If you aren't networking with other great closers in your area, you should.

So, does an effective marketing blitz work miracles? Maybe not, but I can tell you that last week was one of my best weeks of the year. I don't think that's a coincidence.

Senate Finally Passes Homebuyer Tax Credit Extension

Well, don't wait until the last minute or anything. The U.S. Senate finally passed an extension of the federal homebuyer tax credit. The bill now awaits President Obama's approval. If signed (and there's no reason to expect otherwise), the bill will extend the tax credit until September 30th, 2010. As it stands, buyers had to close by Wednesday to qualify. The credit only applies to those homebuyers who entered into their contract by April 30th, 2010.

The homebuyer credit had been tied to an extension of unemployment benefits, causing the bill to stall. Once the Senate agreed to split the bills, the credit passed by a unanimous voice vote.

Double Dipping Is Not Just Poor Manners

If you double dip your nacho chip at a party, that's a breach of etiquette. If you double dip on your Principal Residence Exemption, well, that's a breach of law. Over the last three years, more than 33,000 Michigan homeowners have been caught double dipping (Ms. Manners is aghast). State officials estimate that cheaters cost Michigan a tax shortfall of about $20 million per year. To qualify for the Michigan Principal Residence Exemption, a homeowner must:

Be a Michigan resident.

Own the home and live in it as a principal residence.

File an affidavit with the local assessor by May 1 of the tax year.

Not rent the property.

Not claim any other property as exempt.

Promise never to dunk their carrot stick back into the vegetable dip after taking a bite (OK, I made this one up. Just wanted to make sure you were paying attention).

In addition, a married couple must file separate income taxes and actually live apart most of the time in order for each to claim a homestead exemption.

How To Start A Signing Service (Or Maybe How NOT To Start A Signing Service)

There seems to be more than a few new signing services that have popped up lately. Maybe they've arrived to fill the void left by those that have gone out of business or stopped paying their signing agents. If you've recently started a signing service or plan on starting one, may I make a few suggestions?

What's in a Name? - It's amazing how many companies have the same or similar names. Maybe it would be wise to put some thought into the name and do some research. If Acme Signing Service, Acme Closers, Acme National, and Acme Notaries already exist, I'm thinking you probably shouldn't name your company Acme. Especially if one or more of the other companies has had payment or service issues.

A Capital Idea - If a signing agent does their job, they should get paid. They don't get paid only if you get paid, they don't get paid after you deal with whatever unexpected emergency has arisen, and they don't get paid only after they make a lot of noise. If you want to start a signing service, you should have sufficient starting capital to pay your signing agents.

Less is More - Do you want to scare off even the best signing agents? Then by all means, make your notary closers sign a seven page contract detailing every obligation they're required to meet (with of course no obligation on your end), every legal disclaimer possible, and every error that's going to get them punished, dumped, or flogged. Instead of having us sign that pseudo-legal contract that you lifted from another signing service, just take the time to find good closers that you can trust. Let's build a working relationship from the start instead of an adversarial relationship.

You Don't Know Me at All - You want documentation? Sure. E & O, bond, proof of commission? OK. Resume, references, background check? I've got that. But do you really know what you're getting? None of that tells you what you really need to know. A great closer is knowledgeable. A great closer is personable. A great closer is confident. A great closer knows how to connect with people. Do you really want to know if a closer will represent your company and your clients in a positive and professional manner? Call us. Talk to us. Ask us questions. Then maybe you'll know.

You Get What You Pay For - Anybody can be the cheapest. Do you really want to succeed in the long run? Then forget cheap. Low-ball signing services are failing. They're losing clients. They're struggling to pay their closers. Their reputations are damaged beyond repair. No decent closers will work for them. It's a losing model. Instead, be the best. Offer a quality service. Offer something that your competitors don't. Hire the best, pay a fair fee, be knowledgeable about the entire process, be available, communicate, be easy to work with, and above all have integrity.

Any other suggestions?

No More Mobile Office

When you spend a lot of your work day in your car, your car becomes your office. Maybe you check your emails or send text messages as you drive. Not smart, I know. Still, many of us do it. But starting later this week, if you text and drive or email and drive in Michigan, get ready to be ticketed. The Michigan ban on texting while driving takes effect Thursday, July 1st.

Another Record Low

Mortgage rates hit another low. The average rate for 30-year fixed loans fell to 4.69 percent, the lowest level on records dating to 1971.

$100 Million Mortgage Fraud Ring Busted

A Detroit crime ring has been accused of arranging approximately 500 fraudulent sales and loans totaling more than $100 million, in a scheme that the FBI calls "the largest mortgage fraud we have seen in terms of the number of properties that were involved and the money that was stolen."

The money was allegedly used to fund extravagant lifestyles, including hot rod cars, international travel, palace style homes, and a helicopter. The money was also supposedly used to fund the Choppers Lounge in Flint, Michigan and the Tryst Nightclub in Canton, Michigan (which happens to be right down the street).

That Would Be Nice

Earlier this year, thousands of people rushed to take advantage of the homebuyer credit, an $8,000 tax credit for first-time homebuyers and $6,500 credit for current homeowners buying a primary residence. But many who qualify might not close before the June 30th deadline (an estimated 55,000 to 75,000 according to the National Association of Realtors), meaning they could miss out on receiving credits worth thousands of dollars. Fortunately, Congress is considering an extension of the homebuyer credit.

Interstate Recognition Of Notarial Acts

On April 27th, 2010, the House of Representatives passed the Interstate Recognition of Notarial Acts bill of 2009. The bill requires any Federal or State court to recognize any notarization made by a notary public licensed by a State other than the State where the court is located when such notarization occurs in or affects interstate commerce. A similar bill was introduced in 2007. The original bill arose out of a Michigan court case where a trial court refused to accept an unauthenticated notarized document from another state. However, the Michigan Supreme Court subsequently overturned the ruling, stating that by law, the court should have accepted and given full faith and credit to the act of another state's official. That ruling made the 2007 act unnecessary.

The National Association of Secretaries of States strongly oppose this bill. NASS (rightfully I believe) argues that the act is unnecessary given that three existing acts (The Electronic Signatures in Global and National Commerce Act, The Uniform Electronic Transactions Act, and The Uniform Real Property Electronic Recording Act), combined with state notary laws, the Federal Rules of Evidence, and the Full Faith and Credit Clause already address these issues.

Simply put, current laws are already in place recognizing out of state notarial acts. There's no need to fix a problem that doesn't exist.

Things Must Be Tough For Some Notary Listing Sites

Notary signing agents have seen a blitz of emails recently from various notary listing sites. They tout themselves as being the best, or being different than other sites. Their marketing campaign consists of sending the same email over and over again, week after week, month after month (a special shout out to The Notary Phone Book, who sometimes email me several times a week, week after week, and completely ignore any requests to remove me from their email list). For a fee of $xx, you can list your services with them, where you'll proceed to get loads of business from title companies and signing services. Yeah, right.

Before investing your marketing dollars on these sites, do some research. Ask other notaries, read the forums, find out which sites really produce a return on your investment. Use Google to check common search terms and see if these sites come up on the first page or two. Check their Google rankings and Alexa rankings. Many of these sites make impressive claims, but offer no real value. Their sites are cheesy, produce little or no traffic (other than the curious peeks they get when they send out their spam emails), and are rarely, if ever, used by title companies or signing services.

The tried and true listing sites still produce the best results. For my money, Notary Rotary, 123 Notary, Go Get Notary, and (dare I say) the NNA's Signing Agent site have always given me the best return.

The New HUD Settlement Statement

By now, many of us are starting to see the new HUD-1 Settlement Statement for loans originating on or after January 1st, 2010. In order to provide borrowers with key documentation regarding their loan, the new HUD-1 includes information not previous provided on a Settlement Statement...

Continued at Go Get Notary...

10 Tips For Winning In A Bad Economy

by Mark Tewart

1 – Don’t Drink the Cool Aid
2 – You can’t cut your way to a profit
3 – Don’t cut your life line
4 – Dance with who brought you
5 – Make the bad news good
6 – Stop Boring Me to Death
7 – Go back to the basics
8 – Super-size it
9 – Create Multiple Orgasms
10 – Speed of the Boss, Speed of the Crew

Details

Senate Looks To Stop Deceptive Lending Practices

An amendment to the Wall Street reform bill passed on Wednesday. The amendment prohibits mortgage lenders and loan originators from receiving greater pay for pushing loans with higher interest rates (gee, that makes sense) and requires that borrower's actually have the ability to repay their loans (you mean, they don't already do that?).

Customer Service Hall Of Shame

MSN's yearly customer service hall of shame has just been released. As usual, many lenders make the list. As a matter of fact, 5 of the worst 10 are mortgage or credit card companies. Bank of America is at number 2 (not so surprising). At number 1? AOL. Who knew AOL still existed?

Historic Low Rates Coming To An End?

Mortgage rates climb to an 8 month high.

Who Says You Don't Need A Website?

Sort of strange to walk into a closing and see a picture and bio of yourself on the borrower's kitchen table (That's me on the left. Good looking guy, I know). But that's what happened today. The borrower wanted to know about the person coming to their house so they found my website and printed everything out. I've heard plenty of signing agents say that if a borrower asked to see their I.D. or other information about them, they would refuse. Sorry, I just don't understand that. A borrower has every right to know who I am and ask for verification before letting me through their front door. If having a website that offers some information about me and my services helps a borrower feel more comfortable, then it's worth it.