The adoption and implementation of remote online notarization (RON) received a tremendous boost during the COVID-19 pandemic. Buyers, sellers and title agents are looking to close transactions in the safest way possible. According to the American Land Title Association (ALTA), “Forty-eight states and the District of Columbia have either passed a RON law or issued an executive order pertaining to remotely notarizing documents. Some have done both.”
In December of 2020, ALTA reported that RON use had increased 547 percent during the year compared to 2019. If you are a “Star Trek” fan, the lightning-fast adoption of RON – as well as alternative remote closing methods such as Remote Ink-Signed Notarization (RIN) – has felt like the title industry has gone from cruising to warp speed in a nanosecond. It can even feel tempting to utter one of the show’s classic lines like “Beam me up, Scotty!” when thinking about such transformative change.
But let us back up a bit. As the automobile was invented and became a commonplace form of transportation, society built an accompanying infrastructure – including roads, highways, bridges and tunnels. The same is needed for RON. However, it takes time to develop secure and accessible technology that everyone can use. It requires effort to garner the acceptance of the county recorders who must be ready, willing and able to record native electronic instruments. Creating uniform laws to ensure interstate legal recognition and consumer confidence is also no easy matter.
Properly building out RON infrastructure necessitates the continuous collaboration of numerous parties, including individuals, industries and organizations. For example, MISMO, the Mortgage Industry Standards Maintenance Organization, has been working on standards concerning credential analysis, borrower identification, audio-visual requirements (including the recording of the electronic notarization process) and audit trails. PRIA, the Property Record Industry Association, has been developing national standards and best practices for the land records industry. ALTA and the Mortgage Bankers Association (MBA) have also joined forces to establish model RON legislation. Finally, there are numerous other stakeholders not identified here who have, and are, tirelessly working to enable the requisite RON infrastructure.
Currently, the federal Senate bill (SB) 3533, the Securing and Enabling Commerce Using Remote and Electronic Notarization Act of 2020 (otherwise known as the SECURE Notarization Act), is pending. If passed in 2021, the SECURE Notarization Act will permit RON across the nation and provide for minimum standards and interstate recognition. To track the progress of the SECURE Notarization Act, click on the link provided for SB 3533.
During this time of rapid transition, it is important to keep abreast of the latest RON developments, to “boldly go” forth and not end up like another classic science fiction show: “Lost in Space.”
Is your agency set up to close transactions using remote online notarization (RON)? If so, the American Land Title Association (ALTA) is encouraging you to let lenders know by updating your ALTA Registry listing.
“RON is in high demand and lenders are actively looking for title and settlement companies that can close their loans using this technology,” the association said in a recent post. “Being RON Ready could lead to new revenue during these difficult times.”
There is no cost to be included on the ALTA Registry.
Interest in digital closings is surging, and Alliant National is committed to making sure you stay ahead of the curve.
Today, we’re releasing to our
agents a new series of handbooks exploring the elements and principles of
digital closings.
Extensively researched and
content-rich, Alliant National’s Components
of a Digital Closing series demystifies the Digital Closing Process and its
five major components: eSign, eNotary, eNote/eVault, eRecording and
eCollaboration. Each handbook in this series explores one component. The
purpose of the component is briefly described and placed within the context of
the broader Digital Closing Process. Laws, regulations, technological
requirements and specific technologies are discussed where appropriate.
Remote Online
Notarization (RON) is a new form of notarization permitted in Florida as of
January 1, 2020.
Florida’s previous
notary laws required that the person signing certain legal documents and
persons signing as witnesses be in the same room, that is, physically present
with each another.
Florida’s new RON law
allows persons to be physically outside the presence of the Florida online
notary as long as the notary is located in Florida and all parties can see,
hear and communicate with each other via acceptable audio-video technology.
.
Although “in-person”
notarizations are still by far the norm, we will continue to see RON’s growth
and use as the real estate industry increasingly moves to electronic and
digital technology.
Moreover, in light of
the COVID-19 pandemic, RON will increasingly become a logical alternative and
preference as parties to a transaction do not have to be in others’ physical
presence.
It is important to
remember that a “traditional” Florida notary cannot simply begin acting as a
Florida online notary. Before acting as a Florida online notary, the notary
must be successfully registered as an online notary with the Florida Department
of State. This registration requires completion of a two-hour course, having certain
insurance policies in place, and selection of a “RON service provider” (the
technology company that provides the platform for the audio-video technology
and other required obligations such as an electronic journal).
The current major
impediment to RON is its slow acceptance by large institutional banks and
lenders. Other more “technology-minded” lenders are adopting RON at a faster
pace.
Despite the slow
acceptance by the lending industry, RON will be an important part of the
ongoing shift to handling real estate closings online digitally and
electronically. Once fully implemented, these practices will save agents time
and costs and be more convenient for all parties to a real estate transaction.
ALTA ONE is next week, October 22-25th at the
Fairmont Hotel in Austin, Texas. It’s an important event bringing together
leaders in the title industry to swap new ideas and business practices in
educational sessions that really work.
As always, there’s a lot of content! ALTA ONE will cover a range
of hot topics, so which sessions are a must-attend?
We enlisted the help of Nathan Marinchick, Director of Research
and Educational Programming at Alliant National, to help identify the top 10
education sessions you may want to place on your ALTA ONE dance card next week.
Wednesday, October 23, 2019
9:00 am – 10:00 am OMNI SESSION: THE POWER OF PURPOSE
ALTA’s
CEO, Diane Tomb, will share her vision for the coming year and what she sees as
the industry’s greatness opportunities and weaknesses. And Entrepreneur, author
and “ad man” Roy Spence will help ignite your “epiphany of purpose” during this
keynote — Have you found your purpose? What motivates you? What truly drives
your company? Discover and fulfill your purpose.
10:30 am – 11:30 am NOTABLE:
TEXAS TITLE AGENTS ARE ROCKING WITH RON
In 2018, Texas became the 3rd
state to permit remote online notarization. This session will provide a
first-hand perspective on implementing RON in your operation. As RON becomes
legal in your state you won’t want to miss this opportunity to learn from early
adopters.
1:00 pm – 1:30 pm ENGAGEMENT LAB: COMMERCIAL BUSINESS:
GETTING YOUR FEET WET WITHOUT SINKING THE BOAT
This lab is designed to demonstrate how your title and closing
skills and experience have given you a solid foundation to explore the world of
commercial real estate transactions with confidence.
2:00 pm – 3:00 pm NOTABLE: RESPA 411
This session will review the latest cases and enforcement
actions on RESPA, affiliated businesses, and marketing services agreements.
Come with your questions and discuss the latest trends in RESPA compliance. Experts
will address the future of the CFPB and enforcement actions.
3:30 pm – 4:00 pm ENGAGEMENT LAB: BUILDING A FLEXIBLE
WORKFORCE
Our industry is facing significant changes from a staffing standpoint. How do you face the challenges of finding new people when you have a retirement or just the everyday turnover? What does flexibility in your workforce look like and how can you successfully adapt your business to recruit and retain new staff through these changes? Join this lab to discuss these challenges and brainstorm solutions.
3:30 pm – 4:00 pm ENGAGEMENT LAB: CULTURE AUDIT WITH ALLIANT NATIONAL’S BOB GRUBB
Culture is central to the health of an organization. However,
it is often invisible to those in it, making it difficult to understand what
our culture is, and more importantly, what areas require improvement. This is
why a culture audit is a good idea. Join this lab to learn how this process
works and what to do with the results.
Thursday, October 24, 2019
8:45 am – 10:00 am OMNI SESSION: FROM THE DARK WEB TO WALLSTREET (SPONSORED BY INCENTER TECHNOLOGY)
Wire
Fraud keeps us up at night. Listen to two local law enforcement detectives
involved in a headline-making case in which money was stolen, then recovered,
through a wire fraud incident. Additionally, an Austin based Realtor will
discuss how unsuspecting clients can fall victim to wire fraud schemes. And Cybersecurity
is top-of-mind for all of us, whether we’re thinking about our professional or
personal lives. The director of cybersecurity for Morgan Stanley Wealth
Management and Investment Technology, Rachel Wilson, knows exactly the dangers
you face. Wilson will share her expertise on how best to protect your business
and avoid falling prey to scams and attacks.
10:30 am – 11:30 am NOTABLE: PROPOSED ALTA POLICY FORMS – WHAT’S COVERED, WHAT’S NOT?Title insurance is what we sell, so it’s imperative to know when coverages change. Hear from two ALTA Forms Committee experts about the proposed updates to the 2006 policies. You will be introduced to the new versions, know why changes were made, and what they mean for your business.
12:30 pm – 1:30 pm NOTABLE: THE
UNEXPECTED BENEFITS OF DIGITAL CLOSINGS
Often when we talk about digital closings,
we talk about what’s in it for the consumer or lender. But you should also
focus on the benefits that digital closing can bring to your operation. In this
session, learn how digital closing technology can change your workflow and
improve efficiency – while also providing the more convenient and prompt
closing your consumers and lenders want.
12:30 pm – 1:30 pm NOTABLE: 8 LEGIT WAYS TO MARKET YOUR CULTURE TO HUMANS UNDER 40
If you’re job searching and under the age of 40, you’re probably not going to get excited about a job that offers “competitive benefits” and a “standard work week” with “two weeks of paid vacation.” Sorry, title pros! The new wave of employees has different expectations and you do have to adapt and market your values differently. Take home 8 great ideas to attract talented employees for your business.
