"Same notarization on both docs but the seal had been previously copied onto the page rather than an original stamp being affixed."

In CT I use a self-inking seal that is reproducible when photocopying or sending a documentcopy via fax.  The law doesn't require me to even use a seal.

BUT NEVER have I heard of a notary public anywhere  who whited out original signatures, cut-and-pasted a photocopy of his/her seal, copied the "clean" signature page  and then told the parties to re-sign the document.  I wonder if this is the notary's signature or someone else reproduced the seal and then "copied" the notary's signature rather than having the parties involved go back to the same notary and re-sign the document.

Did your underwriter mean, "The 'intent is clear' that the parties want to commit fraud?"