At both the federal and state level, remote online notarization (RON) appears to be gaining momentum. But at the same time, the practice is also being scaled back as various states’ pandemic-related states of emergencies come to an end. We break down all the action here.

Federal RON action:

In mid-June, the SECURE Notarization Act — which would allow the use of RON nationwide — was re-introduced in the U.S. House, a month after being re-introduced in the Senate. The bipartisan bill was immediately hailed by a variety of industry groups, including the American Land Title Association (ALTA), Mortgage Bankers Association (MBA), and more.

At least one organization opposes the bill: the California League of Independent Notaries. CLIN is the most vocal opposition in California, a state that itself presented the most vocal opposition to the SECURE Act when it was first introduced last year at the start of the pandemic. That bill never made it out of committee.

The current Senate bill has been referred to the Judiciary Committee, while the House version has been referred to two committees: Judiciary, and Energy and Commerce. 

State RON action:

At least 38 states have permanent laws allowing remote notarization; 36 of them allow RON, while the remaining two only permit remote ink-signed notarization (RIN), in which notarization takes place over video but only with paper documents and wet signatures. New Jersey and Illinois became the latest states to enact RON, with bills signed just last week (however, some state laws, including theirs, have yet to take effect).

Meanwhile, states are beginning to end their pandemic-related states of emergencies, meaning state leaders have to decide whether to extend or end their temporary remote notarization orders.

New York ended its disaster declaration; almost immediately the New York Department of State updated its website to state that notaries can no longer perform their services remotely. Mississippi’s state of emergency is set to end Aug. 15, prompting the Land Title Association of Mississippi to post this tongue-in-cheek headline: “Bye Bye RON/RIN — We hardly knew ye.” 

Other states are opting to extend their temporary laws. Georgia officially ended its public health state of emergency on June 30, but Gov. Brian Kemp (R) signed an executive order to allow remote notarization to continue. Maine recently passed a law to allow remote notarizations until Jan. 1, 2023, while also laying the groundwork for permanent legislation: The new law directs the Secretary of State to conduct a study and develop recommendations for a permanent remote notary law.

What about RIN?

RIN gained popularity during the pandemic as a host of states allowed it on an emergency basis. Unlike RON, it hasn’t been seen as a permanent solution. Fannie Mae’s early-pandemic RIN guidance noted, “We do not expect these temporary governors’ executive orders and authorizations related to RIN to extend beyond the COVID-19 national emergency.”

However, in June, Fannie Mae updated its selling guide to announce minimum standards for RIN for loans issued on or after July 1, 2021. A few days later, Freddie Mac followed suit, while also clarifying that its RIN guidance requires multifactor authentication. The GSEs’ moves appear to acknowledge that RIN may be more permanent than initially expected.

Before the pandemic, two states — South Dakota and Montana — had permanent laws allowing RIN. Now another two states have joined them: Wyoming, which passed a law in February to allow both RON and RIN, and Alabama, which enacted a RIN-only law in April.

And don’t forget IPEN…

RON and RIN have received the bulk of the eNotary attention, but in-person eNotarization (IPEN) has also increased, as the states that passed permanent RON laws usually automatically allow IPEN as well.

However, over the last year another two states enacted permanent IPEN-only laws: Mississippi and South Carolina. The latter is notable because South Carolina was one of just two states (along with California) that, at the height of the pandemic, wouldn’t even pass a temporary order to allow remote notarization.

Mississippi and South Carolina borrowers may not be able to do a RON closing yet — but with IPEN they can now conduct a 100% paperless eClosing.

Related Content:

• Senators reintroduce bill to allow remote online notarizations nationwide (5/18/21)
• Should longtime RON-holdout California allow it? Secretary of State considers it (5/6/21)
• RON update: First new remote online notarization law of 2021 passes (2/12/2021)

DocMagic is teaming up with New Jersey-based Secure Insight to set up a training program on remote online notarization (RON) technology and processes. The move will establish a database of notaries who have been fully trained and certified on DocMagic’s industry-leading, 100% paperless Total eClose platform. The partnership combines DocMagic’s technology and Secure Insight’s unique database and individual training for notaries.

Amid rising demand for digital closings, lenders have a growing need to tap well-qualified eNotarization professionals who can ensure deals close smoothly and on time. This new certification program, which reaches the greatest number of notaries with a working knowledge of Total eClose, is poised to significantly move the adoption needle.

"Ultimately, this partnership creates a better RON process for lenders and borrowers alike, benefiting all users involved in the eClosing process," says Dominic Iannitti, president and CEO of DocMagic. "Lenders are operating at maximum capacity right now with an influx of mortgage applications that they must ultimately close on as efficiently as possible amid heavy loan volume. Our new certification process will ensure lenders that RON eClosings will be handled quickly and efficiently by a ready supply of proficient eNotaries.”

Secure Insight’s extensive national notary database can now be easily accessed to find notaries who are qualified to complete seamless, compliant eClosings using RON technology.

"One of the primary challenges in facilitating RON transactions is that lenders are hesitant to entrust the closing process with a notary that may be ill-equipped to effectively perform an eClose transaction," says Andrew Liput, CEO at Secure Insight. "Teaming with DocMagic allows us to identify properly licensed, experienced and trained professionals whom lenders will feel comfortable leveraging to perform the specialized functions surrounding these unique transactions.”

Related Content:

• RON update: First new remote online notarization law of 2021 passes (2/12/2021)
• Remote online notarization (RON) has several benefits beyond safety (10/22/2020)
• RON update: Remote online notarization sees forward momentum—and a setback (6/26/2020)

(Update: On Nov. 5, Michigan enacted HB6297, which confirms the validity of remote notarizations performed between April 30, 2020 and Jan. 1, 2021, and HB6296, which requires registers of deeds and financial institutions to accept electronic documents notarized during that same period. The state later extended the deadline for both laws to July 1, 2021.)

When the pandemic hit in March, Michigan already had a law on the books that allowed remote online notarization (RON) closings. But the state took it a step further when Gov. Gretchen Whitmer (D) declared a state of emergency and issued a series of executive orders, including one allowing the use of remote ink-signed notarization (RIN), a lower-tech alternative to RON.

"We conclude that the Governor lacked the authority to declare a 'state of emergency' or a 'state of disaster' … after April 30, 2020, on the basis of the COVID-19 pandemic," Justice Stephen J. Markman wrote.

The Oct. 2 ruling, plus a related ruling on Oct. 12, nullifies hundreds of Whitmer’s emergency orders, including the one that authorized RIN, which allows notaries and borrowers to use audiovisual technology to remotely notarize and ink-sign paper documents. 

“Hundreds, if not thousands, of mortgages have been recorded in Michigan since the start of the pandemic, many employing notarization processes approved by the nullified Executive Orders, and have been thereafter accepted for filing by county recorders,” noted an analysis by law firm Manatt, Phelps & Phillips, LLP. “Many [mortgages] may have been recorded using RIN or other procedures that were approved by order but not part of the statute itself.”

While the analysis found that RIN was likely legal up until Oct. 12, “borrowers and their lawyers will doubtless argue that mortgages submitted for recording in reliance on the emergency orders are somehow void, and lenders will doubtless be considering various potential fixes to avoid this otherwise likely line of collateral attack.”

To clear up any confusion, the authors urged the Michigan legislature “to move quickly to ensure the validity of mortgages recorded under the expanded procedures.”

While RIN closings have become more popular in recent months due to COVID-inspired social distancing guidelines, the mortgage industry's response has been mixed. Fannie Mae’s RIN guidance encouraged lenders to consider RIN only if RON wasn’t available, due to the RIN emergency orders being temporary.

“I see RIN as essentially using new technology to hold onto an old way of conducting notarizations. That seems oxymoronic,” said Gavin Ales, DocMagic’s Chief Compliance Officer. “It’s adding in extra steps when you don’t need to because you can conduct actual remote online notarizations using available software.”

Nonetheless, some states are still supporting RIN use during the pandemic. Minnesota, which also has a permanent RON law, recently passed legislation to temporarily allow RIN, while last week the governor of Tennessee—another state with a RON law—extended his executive order allowing RIN through the end of the year.

Permanent RON laws, meanwhile, are now on the books in 28 states. The latest state, Hawaii, passed its law on Sept 15, making it the sixth state to take action this year.

Related Content:

• Survey: Homebuyers adapt to eSignings, remote closings during pandemic (10/29/2020)
• Benefits of remote online notarization (RON) can't be overstated (10/22/2020)  
• RON vs. RIN (remote ink-signed notarization): What's the difference? (6/10/2020) 

DocMagic is joining forces with Simplifile, a document collaboration and eRecording provider, to create new process efficiencies that will further digitaize the closing process.

The two companies’ technologies—which include DocMagic’s 100% paperless Total eClose™ platform and Simplifile’s eEligibility data for eNotarization acceptance—are combining to facilitate eClosing usage, instantly qualify eNotarizations by county, and automatically eRecord documents post-closing.

“This integration further streamlines the post-closing process by extending the eClosing process to include county recordings,” said Dominic Iannitti, DocMagic’s president and CEO. “Our partnership with Simplifile provides their vast network of more than 39,000 settlement agents with easy access to DocMagic’s Total eClose™ services.” 

Using Simplifile, settlement agents can seamlessly connect to all of DocMagic’s eClose-enabled lenders in one place to exchange documents, data, and closing logistics.

Additionally, loan closings implemented through Total eClose™ can now be automatically routed to the agent for eClosing coordination, streamlining access to the Total eClose™ room. The digital lift continues beyond the closing table with integrated eRecording in participating counties. Those recorded documents and the title policy are then returned electronically, along with associated recording metadata, to the lender.

“Process consistency is key to driving eClosing adoption with lender closing teams and settlement agents, regardless of what percentage of loans qualify to be closed digitally or where individual loans fall on the digital spectrum,” said Paul Clifford, president of Simplifile. “The combination of DocMagic’s proven eClosing technology and Simplifile’s settlement agent network creates a powerful foundation that enables lenders to scale their digital mortgage efforts as jurisdictional, and investor requirements allow and capture every drop of efficiency and cost-savings possible.”  

Simplifile is a part of ICE Mortgage Services, which applies technology and high-capacity infrastructure to make the mortgage process electronic and more efficient.

Related Content:

• MortgageCountry closing loans in 13 days using DocMagic solutions (7/21/2020)
• 3 reasons why DocMagic's document generation solution is so fast (7/15/2020)
• DocMagic offers free verson of its eSign technology for non-mortgage uses (6/1/2020)

When the coronavirus pandemic hit, several states issued emergency orders to allow remote notarizations, joining 23 that already had permanent laws allowing remote online notarization (RON). A number of the stopgap measures, however, didn’t actually allow RON; instead they authorized a decidedly lower-tech alternative called remote ink-signed notarization (RIN).

Like RON, RIN allows notaries to use videoconferencing technology to notarize documents remotely, but it involves wet-signing paper documents instead of using eSign and eNotary. 

How a new lender found success amid the pandemic: Download the MortgageCountry case study

The RON vs. RIN dichotomy adds more confusion to the complex hodgepodge of state regulations. Some states allow RON, some allow RIN, and others allow both. Meanwhile the rules are constantly changing as some emergency orders expire and others get extended.

The Vermont Paradox

Vermont, for example, is in a unique position: It has a permanent RON law, yet at the moment only allows RIN. Though Vermont passed its law in 2018, RON hasn't been implemented because the Secretary of State still hasn't issued formal guidance for it.

But in late March, the Secretary of State did issue a temporary order to allow RIN for the next 180 days—while expressly clarifying that the rule doesn't allow “any form of electronic notarial acts or remote online notarization."

A survey taken in April by the American Land Title Association found that 21% of title and settlement companies respondents offered RON and another 16% provided RIN-style emergency video notarization using FaceTime or Skype. The agents that offered RON used it in 7% of their closings, while those that offered video notarizations used it in 22% of their closings. Fannie Mae and Freddie Mac each also released RIN guidance.

Here are some key differences between RON and RIN:

• Document Format: A RIN document is wet-signed on paper, while RON documents are almost always in an electronic format and are eSigned.
• Meeting Technology: For RIN, notaries and signers can use videoconferencing technology like WebEx, Skype, Zoom, and FaceTime to meet. RON requires a dedicated RON platform such as NotaryCam.
• Signatures: In a RIN, the signer wet-signs signs the document while the notary watches, and then emails, faxes, physically mails, or delivers the document to the notary. The notary then certifies and affixes their seal to it, and then returns the document to the signer. In a RON, the signer eSigns the document and the notary eSigns the notarial certificate and affixes an electronic seal.

There is another major difference: RIN is temporary, while RON, which had been gaining momentum even before the pandemic, is here to stay. When Fannie Mae released its RIN guidance, it pointedly noted that, “We do not expect these temporary governors’ executive orders and authorizations related to RIN to extend beyond the COVID-19 national emergency” and encouraged lenders to only consider RIN if RON wasn’t available.

“RIN is a temporary solution that is acceptable for now. It’s not a long-term solution because the GSEs won’t continue to accept this format,” said Chris Lewis, DocMagic’s Senior Account Executive for Enterprise Solutions. “RON eClosings will most likely usurp every other form of electronic notarization.”

Related Content:

• Webinar Recording: Road-Tested eClosing Strategies (5/27/2020)
• New support for power of attorney (POA) transactions amid COVID-19 (5/7/2020)
• Amid pandemic, states boost access to remote online notarization (RON) (4/17/2020)

DocMagic has improved the process for for settlement agents to link up with notary providers to complete an eNotarization—especially a remote online notarization (RON) that allows signers and notaries to meet in virtually. The change is crucial in the current COVID-19 climate.

The recent updates to DocMagic’s Settlement Agent Portal helps settlement service providers streamline the eSigning process for borrowers. These functions are part of DocMagic’s Total eClose™ platform, which provides a wide variety of digital eClosing experiences.

Settlement service providers can already use the Settlement Agent Portal to conduct a variety of transactions as part of the closing event. These transactions include adding additional participants (e.g. sellers and witnesses), adding and e-enabling title documents, and reviewing the closing document package to ensure all acknowledgeable annotations are present prior to eClosing.

Now, agents also can select their preferred eNotary Provider and eNotarization method: “In Person” or “Remote Online.”

To learn more about Remote Online Notarization (RON) in the age of COVID-19, sign up for our webinar on April 29.

Once they make their selection, the chosen notary will contact all of the closing package’s participants (borrowers, loan originators, settlement agencies, etc.) to inform them what technical requirements they need (such as browser support, video camera access, internet speed, etc.) in order to conduct the eNotarization. This pre-evaluation of the end users’ technical capabilities helps ensure a fluid eClosing process, especially if the closing will be conducted via RON, which requires specific audiovisual technology.

Another update expedites the final stages of the closing process. When it’s time to close, the agent simply clicks on the “Ready to Close” button, which triggers a notification to the selected notary provider that the package has been finalized. This notification allows the notary provider to contact all participants and prepare a notary for closing.

Those aren’t the only DocMagic improvements to the workflow. Other changes include:

• The Agent Portal’s Participants section has been re-designed to easily associate a notary for each signer and display each participant’s most recent status.
• The Agent Portal now gives the settlement agent access to inspect the generated package documents and add additional annotations if missing.
• When new documents that require notarization are added to the package, the settlement agent can add notary signatures and seals to those documents and assign them to a particular participant.

Settlement service providers play a crucial role in the closing process; with these changes, DocMagic hopes to make their workflow a little smoother.

Related Content:

• DocMagic Gets Lenders Started With eClosing (9/27/2019)

—Update (2/12/2021): RON update: First new remote online notarization law of 2021 passes
—Update (6/26/2020): RON update: Remote online notarization sees forward momentum—and a setback

With most people currently unable or unwilling to leave their homes, the ability to conduct remote online notarizations (RON) has become more necessary than ever—and state and federal officials are taking note.

Since the start of the COVID-19 outbreak, at least 27 states have taken steps to enable remote online notarizations, bringing the total number of states that presently authorize some form of RON—either through existing law or emergency action—to 42.

Some of the states that now allow RON via emergency action previously hadn’t permitted any form of eNotarization at all. Others had RON laws on the books that would have taken effect later this year, but those states opted to enable RON immediately instead of waiting. Some of the laws are limited in scope.

On top of that, a federal bill was proposed that would allow the practice nationwide.

To learn more about RON, including how to get started, sign up for a DocMagic webinar on April 29.

The flurry of action allows for much-needed notary services to continue at a time when notaries and signers need to maintain social distancing.

Since Virginia became the first state to allow it in 2011, RON has been a game changer in the mortgage industry. Remote online notarizations are simply more convenient, compliant, and secure. Additionally, RON integrates with DocMagic’s Total eClose™ platform to facilitate a 100 percent paperless eClosing.

Before the pandemic, most states already allowed eNotarizations, in which electronic documents are signed with an electronic signature. But in many cases, the signer still needed to physically appear before a notary (known as in-person eNotarization, or IPEN).

Not so with RON, which allows notaries and signers to complete an eNotarization by meeting in a virtual environment using audiovisual technology.

The momentum for RON had been growing even before the COVID-19 outbreak. In Florida, where RON has been in place since Jan. 1, DocMagic’s partner NotaryCam announced it saw a 100 percent month-over-month increase in RON closings.

In the early months of this year, record-low mortgage rates led to an uptick in lending action; according to CNBC, refinance applications were up more than 400 percent annually. Many of these moves would have been in limbo after the “shelter in place” orders came down if not for the increased access to RON.

Additionally, on March 18, U.S. Sens. Kevin Cramer (R-N.D.) and Mark Warner (D-Va.) proposed a bill to allow all licensed notaries in the country to perform RON, though the legislation still has a long road before passage becomes a reality.

Much of the recent action is temporary. Many states including Maine, Mississippi, and New Jersey, for example, are only allowing RON for the duration of the coronavirus emergency.

However, as the country reopens in a piecemeal manner, several of the states that temporarily increased RON access will likely consider making those changes permanent—especially after they see the benefits.

Related Content:

• DocMagic and NotaryCam Integrate to Eliminate Reliance on In-Person Notarizations for Paperless eClosings (9/8/2018)

NEWPORT BEACH, Calif., March, 25 2019—NotaryCam®, the leader in online notarization solutions, today announced that eMortgage pioneer Mid America Mortgage is now using the firm’s integration with DocMagic, Inc., the premier provider of fully-compliant loan document preparation, regulatory compliance and comprehensive eMortgage services, to conduct remote online notarizations (RONs) through DocMagic’s Total eClose™ platform. Mid America will leverage the integration throughout its retail, correspondent and wholesale channels.

“Since 2016, Mid America’s strategy has been ‘digital first.’ As a result, we have been able to condense our application-to-closing time down to just two weeks and our closing ceremony to 30 minutes or less with our digital mortgage product Click n’ Close,” said Mid America Owner and CEO Jeff Bode. “RON allows us to double down on our closing efficiency while also providing additional convenience to our customers. The addition of NotaryCam’s remote notary services through our established eClosing partner DocMagic enables us to extend the value we’ve experienced to date through our digital mortgage strategy.”

To date, NotaryCam has conducted more than 160,000 RON transactions for individuals located in all 50 states and 90 countries. Thanks to RON bills that have been passed by multiple states, Texas included, NotaryCam’s team of highly trained and experienced notaries are able to remotely eNotarize mortgage loan documents or other paperwork for individuals across the country using NotaryCam’s secure, easy-to-use platform. The system does not restrict the number of participants that can join a RON ceremony, allowing all relevant parties to participate in the transaction.

“Until recently, mortgage closings still required participants to physically congregate in a single location to complete the transaction. Today, RON enables lenders and settlement agents to eliminate the closing table without losing the personal connection of the closing ceremony,” said NotaryCam Founder and CEO Rick Triola. “The value of the convenience that RON provides cannot be overstated, and it would behoove mortgage and settlement professionals to incorporate RON into their existing closing process.”

Total eClose is DocMagic’s comprehensive end-to-end eClosing solution. The integration with NotaryCam, which was first announced in September 2018, allows Mid America Mortgage and Click n’ Close to eNotarize documents remotely using NotaryCam’s RON service, eliminating the need for home buyers and sellers to physically appear before a notary to wet-sign loan documents.

“We continue to focus on implementing seamless digital closing solutions for our customers,” stated Dominic Iannitti, president and CEO of DocMagic. “Mid America’s accelerated processes highlight the benefits DocMagic delivers for both lenders and borrowers. The added efficiency of NotaryCam’s RON solution is the logical next step and a key component to achieving 100% paperless eClosing transactions.”

MBA and ALTA are collaborating to make it easier for states to accept remote online notarizations

NEWPORT BEACH, Calif., Sept. 27, 2018—DocMagic, Inc., the premier provider of fully-compliant loan document preparation, regulatory compliance and comprehensive eMortgage services, and NotaryCam the leader in online notarization solutions, announced an integration that eliminates the need to wet-sign loan documents in the physical presence of a notary by allowing loan documents to be quickly and compliantly eNotarized online.

The integration works inside Total eClose™, DocMagic’s comprehensive end-to-end eClosing solution. It allows customers to initiate eNotarizations using NotaryCam’s remote service with just a few clicks, thus extending the convenience of a fully online eClosing experience through notarization – the final step in loan closing — without any hard stops or papering out.

“More and more states are permitting remote online notarization and as they do, we can expect to see consumer demand and expectation for remote eNotarizations to grow,” said Dominic Iannitti, president and CEO of DocMagic. “This integration allows DocMagic customers to meet consumer demand without any delays, which is a big part of our value proposition for all DocMagic products.”

The Mortgage Bankers Association has been collaborating with the American Land Title Association (ALTA) to prepare model legislation that would provide a framework for any state to adopt remote online notarization processes.

“Mortgage eClosings have progressed incrementally, and both DocMagic and NotaryCam have been pioneers and champions in the adoption the industry has achieved—so this integration is a natural fit,” said Rick Triola, founder and CEO of NotaryCam. “Our companies are very similar in what we deliver: the industry’s most flexible and customer-friendly experiences, backed by unfaltering accuracy, data integrity and compliance. We are looking forward to moving the industry forward, together.”

Prior to the addition of NotaryCam, DocMagic’s Total eClose solution supported eNotarizations by leveraging in-person notaries equipped with electronic notary signing technology, which it will continue to offer in addition to remote online notarizations, where permitted. Both DocMagic and NotaryCam are approved eMortgage technology vendors with the GSEs, having passed an extensive approval process.

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