September 21, 2017
Mortgage Industry Organization Calls for Online Notarization Standards for Mortgage Documents
Some states have now passed laws to allow online notarization of important documents, even mortgage documents. Most of these laws were initially aimed at making it easier to get documents notarized when participants find it difficult to be in the same location together; for example, when a service member is on duty overseas. However, these laws are broadening and even more states are considering them.
This has prompted the Mortgage Industry Standards Maintenance Organization (MISMO) to call for the development of standards and best practices for electronic and online notarization for mortgage documents, or any documents related to the mortgage closing process.
According to a recent article in Mortgage Professional America Magazine, MISMO believes that standards are needed to create consistency across state lines in regard to electronic and online notarizations used for mortgages. Standards would also assist lenders and others in the mortgage industry to develop new practices to meet the consumer demand for convenience and better customer experiences.
What Would the Notarization Standards for Mortgage Documents Cover?
These new notarization standards would cover topics including:
- Credential analysis
- Borrower identification
- Capturing and maintaining a recording of the notary process electronically
MISMO is calling for a group of mortgage industry professionals to meet and work together to develop the new standards, as well as guidelines for how to implement them.
Lincoln Abstract & Settlement Services
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