How one simple loan modification went sideways — and how to keep it from happening to you.

The Scenario

A notary completes a loan modification appointment, uploads scanbacks, and receives “OK to drop.” Hours later, the notary calls the company to admit that one signer didn’t have their ID at the table. The plan was for the signer to go home and text a picture of the ID afterward. The photo never arrives. Now the notary is concerned.

What went wrong? Plenty — and it’s more common than you’d think.

What Went Wrong (and Why It Matters)

1. No acceptable ID at the moment of notarization
   In nearly every U.S. jurisdiction, a notary must identify each signer when the notarization occurs. Identification after the fact (by photo, scan, email, or text) is not a lawful substitute for personal appearance + satisfactory evidence at the time of the act.
2. Proceeding anyway
   Uploading scans and seeking approval to ship implies all notarizations were properly completed. If a signer was not properly identified, those notarizations were not complete.
3. Attempting an after-the-fact “fix”
   A texted image cannot retroactively validate a notarization. If identity wasn’t established in the moment, the act should not have happened.
4. Late escalation
   Hours passed before the hiring company learned of a compliance issue. Early, transparent communication protects the borrower and the file.

The Consequences

• For the borrower: funding delays, redraws, potential lock expiration, frustration, and erosion of trust.
• For the lender/title/SS: operational rework, extra shipping/print costs, missed timelines, possible investor pushback.
• For the notary: fee reductions or clawbacks, removal from rotation, negative performance notes, regulatory complaints or discipline, and potential E&O coverage gaps for work not performed according to law.

What the Notary Should Have Done Instead

At the table – when ID is missing or unacceptable:

1. Stop. Do not notarize. You cannot proceed without satisfactory evidence of identity.
2. Call the hiring party immediately from the appointment. Document who you spoke with and the outcome.
3. Offer compliant options:
   • Reschedule when valid ID is present.
   • If your state allows credible witnesses, use them only when all statutory requirements are met (presence, knowledge, ID of the witnesses, recordkeeping, etc.).
   • If no lawful option exists, postpone and return instructions to the hiring party.
4. Journal accurately. Note that you could not proceed because the signer lacked acceptable ID; record who you contacted and any instructions received.
5. Secure the documents. If nothing was notarized, follow the company’s directions (return, hold, or destroy per policy). If some documents were notarized for other signers, mark what is complete vs. pending per instructions.

Prevention: Your Pre-Appointment Checklist

Use this checklist to avoid preventable ID surprises:

• Confirm all signers and IDs during your confirmation call/text. Ask each signer to physically locate and bring the exact, acceptable ID form(s) required (name, expiration, signatures, any jurisdiction-specific needs like “Real ID” not required but must be government-issued and current, etc.).
• Reconfirm at the door before you open the package: “Before we begin, I’ll need to see each signer’s valid, acceptable ID.”
• Name match check: Ensure ID name reasonably matches documents. Clarify AKA riders if present.
• Credible witness policy: Know in advance whether your state and the hiring party permit CWs and what the requirements are. Have a CW script and form ready if allowed.
• Escalation plan: Save the hiring party’s after-hours number. If something is off, you can reach someone quickly.
• Journal discipline: Start journaling immediately — even if you don’t proceed. Contemporaneous notes protect you.

Bottom Line

If valid, acceptable ID isn’t physically present at the time of notarization, the notarization does not happen. Stopping the appointment protects the borrower, the file, and your commission. The fastest way to keep a loan moving is to do it right the first time.