RON/ E-Closing.

The ESIGN Act passed in 2000 to enforce the viability of electronically signed documents. However, the industry as a whole has been slow in adapting to technology. But that all may be changing very soon.

With the emergence of online mortgage solutions and the increasing availability of technology to simplify the process of finding a home for purchase, the title insurance industry may be on the fast track to online integration.

In the next year, there will be a major shift toward electronic closings, or e-closings. The legislation is being proposed and adopted all over the country to make way for a faster and more secure way to close real estate transactions.

Can I close remotely now via e-closing?

Four Points Title & Escrow is up to date with the latest software to provide an online closing for our clients. However, there a few changes we will need to see in our industry. Legislation in many states doesn’t explicitly state that the use of a video notary is acceptable, nor provide parameters for the security portal in a virtual settlement environment. Virginia, Montana, and Texas allow the use of video notary, and thus certified notaries from these sates are an option for e-closings.

The biggest setback is on the lending side. The Note and Deed of Trust are essentially the two most important mortgage documents that the borrower signs. Some mortgage lenders have already established an “E-Note” and “E-Vault” platform and are capable of closing your entire loan electronically. Essentially, the E-Note allows for the Note to be enforceable when electronically signed, and the E-Vault stores the E-Note.

Mortgage lenders are diligently working to transition to e-closings, and it will be no surprise to see a major influx of e-closings. We’re also keeping an eye on e-closing legislation.

If you have any questions regarding the e-closing process, please feel free to contact us.