MISMO Seeks Input on Online Notary Standards
MISMO®, the Mortgage Industry Standards Maintenance Organization, invites mortgage industry participants to collaborate on developing new electronic and online notary standards and best practices for use within the mortgage process.
Over the past few years, several states have approved laws that allow use of a remote, online notary in situations in which it is not convenient for consumers to be located in the same place. Several other states are considering similar laws.
MISMO, recognizing the need for consistency across the country, has prioritized an initiative to develop standards for electronic and online notary actions. This will enable states to adopt consistent regulations for electronic and online notarization and permit lenders and other industry participants to quickly adopt new practices to meet consumer demands for convenience and to improve the overall consumer experience.
“Technology has advanced to the point where online notarizations are possible, but there is no consensus yet on how to conduct them,” said Mark Ladd, Vice President Regulatory and Industry Affairs with Simplifile, Provo, Utah. “By creating standards and best practices, MISMO seeks to create consistency in online notarizations from state to state. We look forward to collaborating with mortgage industry participants as well as state agencies and county recorders to develop common practices that ultimately make things easier for consumers.”
“MISMO provides a tremendous forum for mortgage industry collaboration and innovation,” said Rick Hill, Executive Vice President of MISMO and MBA Vice President of Industry Technology. “MISMO is in the best position to create remote, or online, notary standards and best practices ensuring consistency of practice and enhancing customer experience.”
The new Online Notary Workgroup will be responsible for creating a set of industry standards for use of electronic and online notaries, which may include credential analysis; borrower identification; and capturing and maintaining a recording of the notary process electronically. In addition to creating standards, the workgroup will develop best practices, implementation guides and other educational materials.
“Online notary has the potential to transform the consumer experience” said Nancy Pratt, Vice President of Business Relations and Government Affairs with Pavaso, Plano, Texas. “Just think about one example: A soldier or sailor is away serving his/her country while their spouse closes on a new home. With online notary, the service member can fully participate in the loan closing via audio/visual connection. The spouses can see each other and talk through any questions they may have.”
“MISMO has been collaborating for years to develop electronic mortgage standards” said Rachael Sokolowski, President of Magnolia Technologies, Seattle. “From SMART Docs® to online notary, standards developed by MISMO are enabling the mortgage industry to serve consumers in new innovative ways. Electronic notarization, whether in person or online, is one more step in the transformation of the consumer experience at the digital closing table.”
To participate in the effort, please send an email to info@mismo.org with “Join MISMO’s Online Notary Workgroup” in the subject line.
About MISMO
The Mortgage Industry Standards Maintenance Organization (MISMO) was created in 1999 to develop a common data language for the residential finance industry. Today, MISMO standards are accepted and deployed by every type of entity involved in creating mortgages and are required by most regulators, housing agencies and GSEs that govern exchange of information. Use of MISMO standards has been found to lower per loan costs, improve margins, reduce errors and speed up the loan process by reducing manual, paper-based processes. MISMO is managed by the Mortgage Bankers Association. For more information, visit www.mismo.org.
