Ever thought of closing a digital loan online? Well, you can now notarize your documents online, thanks to online notarization. Identity fraud is one common occurrence in lending practices. Once an identity fraudster accomplishes his deal, he can decide to move to a different state, leaving the lender with losses to incur. However, with a virtual notary, such crimes are minimal. You will no longer have to seek an attorney’s consent as the virtual process will offer you all the needed services in a single RON office.
As a lending company, digitally notarizing a document is a solution to shield you from fraudsters and poor executions. The various key security features including a video-recorded session give assurance with the person you are dealing with and act as evidence before a court of law. Virtual notaries are legal and authorized in various states by E-sign. Remote Online Notarization (RON) laws have made it possible for various states’ notaries to run remote notarization. The laws allow the notarized documents to be signed when the notary and the signer are geographically distanced
Components of Remote Online Notarization
RON has five basic components that make the lending process effective. They are:
- The process has to be conducted in real-time with constant video and audio feeds.
- A recording of the transaction is a MUST thing.
- The signed document cannot be altered without indicating evidence of modification.
- The ID software tool authenticates a mortgagor’s identity. The borrower is prompted to answer background-check questions promptly.
How Remote Online Notarization has improved lending?
Virtual notarizations are beneficial to both lenders and borrowers because of various reasons. You can close a loan virtually using RON laws in an office located in a specific state. A virtual office is not limited to the localities of that state. A lender in state X can close a loan for an asset located in state Y and the mortgagor is in state Z. The RON laws allow notaries to do out of state transactions. This means that the client in state Z where there are no laws allowing remote notarization can get a notary in state Y because the law applies across all states.
- RON minimizes the need for a power of attorney and gives the borrower control and allows him to stay engaged throughout the process. When the borrower is engaged, he learns about the various issues and recommendations involved.
- A virtual notary office relieves the lender and borrower agents the hustles of moving from one place to the other to close the desired lone in a physical location of a notary public’s office.
- Online notarization has reduced the expenses and time associated with mail closing. This includes the stamps and the transportation fee needed for the process.
- RON has increased efficiency in the signing process. As a mortgagor, you will not have to traverse different counties and different offices looking for a notary. A virtual notary office will offer you the necessary signatures and stamps at the comfort of your home. The single location will prevent you from endless walks to offices.
- When appropriate policies are followed, closing officers get closely supervised. This supervision deters you from fraudulent behaviors. RON’s security features will enable you to be fully engaged in the process, monitoring and supervising your loan closing officer.
- The audio-visual engagement between the involved parties gives the notary public a safe and secure environment, conducive for his work. The notary public is free from pressure resulting from stakeholders and borrowers who are likely to force him to bend the rules.
- RON allows the notary public to authenticate and analyze a borrower, thanks to the availability of tracking software that validates the personal information the mortgagor has provided. The validity of information shields the notary from identity fraud.
- Contrary to the use of physical IDs which are susceptible to wear and tear and are likely to be outdated when the borrower changes their identity or decides to relocate to a different state, remote online notarization’s database-driven identity have increased security.
- When done efficiently, RON laws make lending effective and safe, offering lenders supplementary scalability.
RON is steadily gaining popularity in the mortgage business. This online notarization has enhanced lending making it an easy, safe, and smooth business process. Various states that have embraced the laws have made it convenient for borrowers. Suppose you are thinking of getting a remote online notarization for our lending business. In that case, it is recommended that you consult with a professional virtual notary to help advise you on the way forward. Both the lender and the mortgagor are saved on time and financial expenses, thanks to the elimination of to and fro trips of the parties’ agents.
Give your lending business a boost by contacting an online notarization expert. For more information, you can request an online appointment and get assistance.