Remote Notarization Becoming a Must-Have Offering?
Source: American Banker
Notarizing documents entirely over video was a matter of safety at the beginning of the pandemic, when people were eager to refinance their homes or take out loans but hesitant to congregate in person. Now, it’s about convenience and efficiency.
Remote online notarization, or RON, takes place entirely over audiovisual technology. The majority of states have permanent or temporary RON laws in place, many of which were enacted during the pandemic. Financial institutions have used it for closing and refinancing mortgages, closing other loans, private wealth management and more.
Consumers have become used to performing all kinds of secure transactions online during the pandemic, both for safety and convenience reasons. This makes adopting RON a key consideration for FIs, even in the absence of federal regulation.
With RON, the signer and notary will meet over video, where the notary verifies their identity before they sign documents electronically. The notary concludes the process with an electronic seal. Most RON platforms create an electronic journal entry and keep a recording of the RON event, according to the National Notary Association.
This practice is not to be confused with in-person electronic notary, or IPEN, where the parties gather in person but use electronic signatures and digital stamps to make the process smoother.
« Return to "VACUL Headlines" Go to main navigation