Based on information we received from the Illinois Secretary of State’s Office, we believe that a mortgage loan originator may explain loan documents to a borrower and notarize the borrower’s signature on the same documents.

The Illinois Notary Public Act now provides that “no notary public shall be authorized to explain, certify, or verify the contents of any document,” with an exception for notaries who are attorneys. This prohibition would appear to prevent a loan originator from explaining documents they had prepared for a loan closing if they also would be notarizing signatures on those documents.

However, when we posed this question to the Office of the General Counsel for the Illinois Secretary of State, we were advised that in this example, the loan originator serves two roles in the transaction — as a loan originator and as a notary. In their “capacity as a notary, they are merely acknowledging the signatures,” while in their capacity as a mortgage loan originator, “they have an obligation to ensure the information in the loan documents is fully understood (as best they can).”

We were further advised that “this provision is intended for Notaries who don’t have any specialized knowledge or information about the document or the transaction,” (i.e. when someone brings in a document to have it notarized). In the example of a loan officer notarizing documents at a loan closing, “since the Notary is also the loan officer, he/she can explain and probably has an obligation to explain the document in the course of his/her employment as a loan officer, which is separate from his/her role and duty as a Notary Public.” Based on this explanation from the Secretary of State’s office, we do not believe that a mortgage loan originator who explains loan documents in the course of their employment would be prohibited from notarizing the same documents.

Additionally, we requested that the Illinois Secretary of State update the Notary Services Index and FAQs on their website to add this guidance. We were advised that their office would consider doing so, and we will update this Q&A if such information is posted.

For resources related to our guidance, please see:

• Illinois Notary Public Act, 5 ILCS 312/6-104(k) (“No notary public shall be authorized to explain, certify, or verify the contents of any document; however, this prohibition shall not prohibit an attorney, who is also a notary public, from performing notarial acts for any document prepared by that attorney.”)