Regulatory relief expected to help borrowers close on loans faster and without risking further spread of COVID-19
Des Moines fintech LenderClose, which helps credit unions and community banks accelerate the real estate lending process, is hopeful that the decision to suspend the personal appearance requirement for loan document notarization in the state of Iowa will soon sweep the nation.
The move further paves the way for the legalization of remote online notarization (RON) in the state. In the spring of 2019, Iowa Governor Kim Reynolds signed Senate File 475 in favor of RON, but the bill carried with it an effective date of July 1, 2020. On Sunday, March 20, 2020, the governor’s office announced it had signed a State Public Health Emergency Declaration that, among many other actions, suspended the requirement for a notary to be physically present for the signing of real estate loan documents.
According to the Mortgage Bankers Association, 23 U.S. states have enacted RON legislation. More than 30 RON bills were introduced in more than 20 state legislatures during 2019.
Omar Jordan, a long-time advocate for lifting regulatory restrictions on RON and the CEO of LenderClose said, “Not only does this regulatory relief make it easier for the most vulnerable among us to conduct important financial transactions, it brings much-needed technology to the mortgage and home equity lending process. This allows lending to become a true ‘at-your-fingertips’ experience. Additionally, it puts people-centric lenders on much more solid footing to compete for increased loan business in the wake of the Fed’s efforts to protect the economy.”
Jordan encourages Iowa credit union and community bank lenders interested in accelerating RON at their institution to contact LenderClose immediately for participation in the fintech’s RON pilot program by visiting: https://www.lenderclose.com/contact/.
What is Remote Online Notarization?
Remote online notarization enables online notarization of documents using audio and video technology. Documents are shared electronically, and both the signing and notary processes occur face-to-face in a virtual environment. A series of rules and regulations, including those governing identity verification and video record keeping, maintain the integrity of notarization, protecting lenders and borrowers from fraud while dramatically accelerating the time it takes to complete a real estate transaction.
About LenderClose, Inc.
LenderClose is a proprietary, technology-focused lending platform that injects speed and efficiency into the lending process, greatly enhancing the borrowing experience. Based in Des Moines, Iowa, the rapidly-growing company is focused on helping credit unions and community banks keep lending local through innovative workflows and process automation. Obsessive about the end-user experience, LenderClose developers work closely with client users to continuously iterate the platform, generating elegant interactions for both lenders and borrowers across the entire lending journey. To learn more, visit lenderclose.com.
