MISMO Releases Final Remote Online Notarization Standards
MISMO®, the mortgage industry standards organization, released its finalized Remote Online Notarization standards. The RON standards allow the use of audio-visual communication devices to notarize documents in a virtual online environment.
“MISMO’s RON standards allow for a fast and convenient closing experience for digital mortgage closings, while ensuring consistent implementation of RON laws across all 50 states,” said Rick Hill, Executive Vice President of MISMO and Vice President of Technology with the Mortgage Bankers Association.
The RON standards have been thoroughly reviewed by a wide range of organizations and industry participants, and are ready for broad use across the entire residential mortgage industry.
Last month, MISMO’s RON standards were released for a 15-day public comment period following an approved update on precluding the storage of personally identifiable information (https://www.mba.org/2019-press-releases/july/mismo%C2%AE-approves-new-remote-online-notarization-standards). Based on industry feedback received during the comment period, the finalized standards now state that credential analysis procedures and technology are widely accepted as identity proofing processes, and MISMO also supports efforts to explore and permit other types of analysis and authentication.
MISMO created RON standards to promote consistency across mortgage industry practices and state regulations. In the interest of furthering adoption of RON and to encourage consistency in related state regulation, the standards are free to the public and do not require a license fee to use them. Standards include credential analysis, borrower identification, capturing and maintaining a recording of the notary process electronically, audio and video requirements, record storage and audit trails.
MISMO’s RON standards support was developed by MBA and the American Land Title Association, which multiple U.S. states are now using to enact RON laws in their jurisdictions. Furthermore, some states that have already enacted RON legislation used draft versions of the MISMO RON standards to implement their state law. For more information about the MBA-ALTA State Model RON Bill, click https://www.mba.org/audience/state-legislative-and-regulatory-resource-center/remote-online-notarization.
For more information about MISMO’s RON standards or to download them, visit: http://www.mismo.org/standards-and-resources/emortgage-specifications/remote-online-notarization-standards.
Release and use of MISMO standards, including the MISMO RON standards, are governed by the MISMO Intellectual Property Rights Policy. For more information on the policy, click https://www.mba.org/audience/state-legislative-and-regulatory-resource-center/remote-online-notarization.
Industry participants who have comments or questions about the new RON standards may contact MISMO at info@mismo.org.
About MISMO
The Mortgage Industry Standards Maintenance Organization (MISMO) is the standards development organization for the residential and commercial finance industry. Today, MISMO standards are accepted and deployed by every type of entity involved in creating mortgages, and they are required by most regulators, housing agencies and GSEs that govern the exchange of information. Use of MISMO’s 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.
