March 19, 2025
By Hannah Chen, Founder & CEO of Loan Signing Solutions
One of the biggest frustrations in the loan signing industry is this: when a borrower refuses to sign a loan, the notary is often the first to be blamed.
Lenders, brokers, and title or escrow officers are quick to point fingers at the signing agent, assuming the notary must have done something wrong. As a result, notaries are frequently denied payment, despite the time and money spent on printing documents and traveling to the appointment. Many notaries find themselves fighting to get paid, waiting for months, or simply never receiving payment at all.
But let’s step back and ask—is it really the notary’s fault? Or is there a bigger issue at play? In my experience, borrower refusals usually stem from miscommunication, poor preparation by lenders and escrow officers, or notaries overstepping their role. Let’s take a closer look at who is really responsible when a borrower refuses to sign—and how we can fix the problem.
1. The Biggest Culprit: Lack of Preparation by the Lender
From my years in this industry, I can confidently say that the number one reason a borrower refuses to sign is due to the lender—not the notary.
Many loan officers fail to fully explain the loan details to their borrowers before the signing appointment. Borrowers show up to the signing table confused, unaware of their loan terms, and sometimes even shocked by unexpected fees, rates, or payment structures.
A particularly common issue arises when there are multiple borrowers on the loan. Often, only one borrower has been communicating with the lender, while the others are left completely in the dark until they sit down to sign the documents. Imagine being a co-borrower who hasn’t been involved in the discussions, only to see unexpected terms at the last minute. It’s no surprise that confusion and refusals happen in these situations.
A well-prepared borrower should already understand the interest rate, loan amount, closing costs, monthly payments, and any changes to their mortgage before they even meet the notary. But that’s the lender’s responsibility—not the notary’s.
If a loan officer fails to do their job properly, it’s unfair for notaries to suffer the consequences.
2. Escrow & Title Officers Hiring the Wrong Notaries
The second major reason for signing failures falls on escrow and title officers—especially those who:
Use signing services that prioritize quantity over quality, hiring unqualified notaries.
Hire notaries based on personal relationships rather than skill and experience.
I am not saying that every escrow officer hires bad notaries, but let’s be honest—it happens. Some escrow officers don’t verify whether the notary they hire is truly qualified. They might hire someone they know personally, a friend, or someone from a mass-signing service that assigns notaries randomly with little vetting.
When this happens, who is really at fault when a borrower refuses to sign because of confusion or mistakes?
The unqualified signing agent?
Or the escrow officer who knowingly hired them?
At Loan Signing Solutions, we take this issue seriously. We do not hire just anyone with a notary commission. We make sure that every notary we work with is vetted, trained, and held to professional standards. Unlike mass-signing services that assign jobs to any available notary, we carefully track the performance of our signing agents and provide mentorship for newer notaries to ensure they are fully prepared.
If an escrow officer chooses to hire an unqualified notary, they share responsibility for a failed signing.
3. Notaries Who Overstep Their Role
While many notaries are unfairly blamed for borrower refusals, there is one type of notary who truly causes problems—the “too professional” notary.
These notaries go beyond their role and:
Give financial advice to borrowers.
Discuss mortgage terms in detail, sometimes confusing or even scaring the borrower.
Brag about their experience as a former loan officer or title officer.
These notaries think they are helping, but in reality, they cause more harm than good.
I’ve seen this happen far too often. Some notaries believe their prior experience in the mortgage industry makes them more knowledgeable than the loan officer, so they start offering opinions, questioning fees, or telling borrowers to think twice before signing.
Frankly, these notaries are the worst. They overstep their role, cause unnecessary fear and doubt, and directly contribute to signing refusals.
Let’s be clear—a notary signing agent’s job is simple:
Witness the signing of loan documents.
Notarize the necessary documents.
Return the documents to the appropriate party.
Nothing more. If a borrower has questions about their loan, the notary should direct them to the lender or escrow officer. Notaries are NOT financial advisors.
At Loan Signing Solutions, we actively track the performance of our signing agents to ensure this does not happen. We weed out these “know-it-all” notaries so they do not mislead borrowers or damage transactions.
So, Who’s Really to Blame When a Borrower Refuses to Sign?
When a borrower refuses to sign, it is rarely the notary’s fault. More often than not, it is due to:
Lack of preparation by the lender.
Escrow officers hiring unqualified notaries.
Notaries who overstep their role and create doubt.
Yet, who suffers the most? The notary. Not only do they not get paid, but they often lose time and money on printing and travel.
This is why hiring the right signing service matters.
At Loan Signing Solutions, we believe in quality over quantity. We only hire experienced, professional notaries and offer mentorship to ensure every notary is fully prepared. We track performance, remove underperforming notaries, and ensure that every closing is handled with professionalism.
When it comes to the last step in the mortgage closing process, don’t risk the entire transaction by cutting corners.
Choose Loan Signing Solutions—the signing service that hires only the best, tracks performance, and ensures every borrower has a smooth and professional closing experience.
By Hannah Chen