How does Remote Online Notarization (RON) work?
Remote online notarization (RON) is the action of executing a notarization online using audio-video technology such as a computer, tablet, or smartphone. Remote online notarizations enhance convenience, availability, and security compared to a traditional in-person notarization. Modern tools validate identity online, such as credential analysis and knowledge-based authentication, and apply a secure e-signature with thorough audit trails of the entire process.
Borrower preferences are changing.
Borrower preferences are changing. The past year saw demand for eClose technology soar from both a lender and consumer standpoint. A recent study conducted by ClosingCorp and STRATMOR found that the vast majority of borrowers surveyed were satisfied with their eClose experiences. Furthermore, the greater part of respondents expressed a preference for remote closings over in-person ceremonies going forward. Adoption of remote online notarization soared 547% in 2020, according to a survey of major vendors working in the RON space. In another survey, 82% of signers preferred to see in advance what documents they were going to encounter during a transaction.
How lenders can adapt and adopt.
While RON legislation will make remote notary eClosings (fully-digital experiences) possible, lenders, along with title & escrow businesses that are considering eClosings are placing their sights on some variation of digital closing such as hybrid or in-person digital closings. Today, 48 states and the District of Columbia have either passed a RON law or issued an executive order pertaining to remotely notarizing documents, some have done both, per the American Land Title Association. A fully digital experience will likely not fully replace the in-person closing experience for some time (or ever); however, agents seeking to remain competitive are finding ways to integrate technology for more transparent and efficient client and consumer experiences. For lenders operating in states that have either temporarily or permanently authorized RON, even without the presence of an eNote, and with nearly every major title underwriter now willing to ensure these transactions, RON is truly a 50-state solution despite the lack of permanent, nationwide RON legislation.
Winning with RON
Lenders adding RON to their eClose process stand to gain key advantages, including:
- Uniting all closing participants from different locations
- Online notary signing allows borrowers to quickly sign all closing documents while guided by a friendly notary
- Tamper-proof security and audit trails for compliance
- Seamless eNote registration and storage in eVault
Ultimately, lenders who integrate RON technology into their eClose strategy can improve borrower satisfaction, enable seamless collaboration between all closing participants, and streamline the entire closing stage from an operational standpoint.