An electronic signature, identity verification, audio-visual and electronic notarial journal, and record-keeping technologies are used in the process of having a state-licensed notary public notarize a document remotely.
A notary public’s convenience is a plus in a world that wants to embrace efficient and accurate ways of doing things. Below are the advantages of using remote online notarization instead of traditional methods.
What is a remote online notarization (RON) service?
An electronic signature, identity verification, audio-visual and electronic notarial journal, and record-keeping technologies are used in the RON process to notarize a document remotely. Using these tools, notaries may notarize documents safely and efficiently while saving time and money for all parties involved. It is possible for the notary public and the person to draw a signature on the document to perform a notarial act using their mobile devices rather than meeting in person at a notary office.. This is possible in states where RON services are allowed by law.
What are the most important factors to consider before RON?
There has been an increase in the states allowing the use of RON since the outbreak of the COVID-19 epidemic. While each state’s qualification for RON varies somewhat, the following requirements are included in the majority of laws:
- State licensing of notary publics
- Communications technology that combines audio and video
- Verification of government-issued identification by use of credential analysis technology
- Use of e-signature and e-signature seals
- Records, electronic logging (audit trails), and storage rely heavily on this technology.
- Confidentiality in the use of personal information
Why is remote notarization necessary?
The mortgage and financial services businesses and their clients stand to gain even more from the widespread use of remote online notarization after COVID-19. RON has several notable advantages, such as:
- Improved all-round customer experience
Clients were previously required to seek and arrange a notary public to witness their signatures before RON transactions become eligible. Despite its importance, this time-consuming activity isn’t usually convenient and may lead to irritation and long delays. You can schedule E-Notarization appointments online and expect quicker transaction timeframes, including accelerated mortgage closing and loan cash distribution. Purpose-built technology also makes it possible for all parties involved in a house purchase to work together digitally from the time of application through closing, making the process smoother and less stressful for everyone involved.
- Eliminates errors
Although paper is a tried-and-true manual technique, it is not error-proof. Minor errors, such as omitting a checkbox or signature, may cause a transaction to take longer and cost organizations money and effort to fix. Missing fields, such as signatures, checkboxes, and initials, are less likely to occur in a state-approved and MISMO®-certified platform since they are identified in the system, allowing for rapid action and avoiding expensive delays.
- A more secure method of doing business
In a traditional notarization, a notary public must personally verify the signer’s identity using a picture ID or passport. RON uses Knowledge-based authentication and credential analysis to make notarization more secure.
Authenticating someone’s identification in a digital platform using knowledge-based authentication, or KBA requires the user to answer a series of secret or “out-of-the-wallet” questions. If you want to verify the authenticity of a government-issued picture ID, credential analysis typically necessitates the use of third-party software or vendor assistance.
- Increases productivity and saves money
Customers, lenders, and title firms all benefit from a RON qualified transaction. As a result of avoiding travel and mistakes, RON enables higher operational efficiency, which directly affects turnaround times and the ultimate cost to settle a loan.
- Saves trees by cutting down on the use of paper
There are a lot of documents involved in most financial transactions—including loan origination, closing, and loss mitigation. RON reduces costs and mistakes and, most significantly, saves countless trees from the paper mill by eliminating the industry’s dependence on paper.
The typical mortgage loan file has an estimated 280 pages of documentation, according to FreeandClear, a company that helps customers understand and manage the mortgage process. Multiplying this figure by the annual average number of mortgages handled yields a staggering annual paper consumption of nearly a billion pages. It’s possible to reduce environmental footprint even if a percentage of mortgages are held using RON, which might have an excellent long-term influence on our planet.
Is it safe and lawful to use RON technology?
The norms regulating notarization are constantly changing, much as those controlling electronic signatures, as new technologies develop. RON is gaining use in the United States to notarize papers as a safe and straightforward method. For instance, New York has already authorized remote online notarization among other states. When it comes to this procedure, you must learn about the complexities and speak with legal advice in your area if you have any questions or concerns.
After learning about the advantages of utilizing RON, you may choose to use it for your team’s notarization needs. Ensure the vendor you are considering is reliable, satisfies your state’s legal standards, and adheres to notarization best practices before making a final decision.
