The Mortgage Bankers Association announced MISMO, the Mortgage Industry Standards Maintenance Organization, is looking into online notarizations to establish an industry standard.
While online notarizations are still relatively new to the industry, Notarize helped bring them to the forefront.
Notarize worked with United Wholesale Mortgage to execute the first remote notarization back in August, marking the first of what will likely be many more.
According to United Wholesale Mortgage President and CEO Mat Ishbia, this will soon become the standard way of doing closings.
The new solution allows borrowers to Facetime or Skype with the notary, making it the first e-closing borrowers can complete remotely, with a notary not having to physically be present.
As this type of notarization grows, the MBA is seeking to create a list of best practices to better unite the industry.
MISMO explained that over the past few years, several states have approved laws that allow the use of a remote, online notary in situations in which it is not convenient for consumers to be located in the same place.
Given the need for consistency across the country, MISMO said it has prioritized an initiative to develop standards for electronic and online notary actions.
The new initiative should 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.
The new Online Notary Workgroup will be responsible for creating a set of industry standards for the use of electronic and online notaries.
“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, Simplifile. “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.”
Along the same lines, earlier this week, the MBA announced it is requesting feedback from the mortgage industry on its new closing instruction industry standards.
The MBA explained the new closing standards will be designed to improve communication and avoid delays during the closing process.