Monday, October 10, 2016

Lack of Progress / Electronic Mortgages (Why the Heck Does it Matter?????)

The reason the topic of electronic mortgages (a.k.a. paperless mortgages) matters to notaries is this--it will be a long time before remote notarizations get here.  

Lenders want them to be comfortable like situations where unicorns frolic and paperless mortgage lenders recline in baby blue easy chairs underneath pink and yellow cotton candy trees.

That's carrying it to an extreme, of course.

Maybe the unicorns won't be real...maybe they are of the Ty Beanie Baby type...but, the point is this:

Before lenders are comfortable with webcam-based, online remote notarial acts, they've got to get REALLY comfortable with electronic signatures and electronic notarizations!

Several states have had laws in place for years to satisfy the need for eMortgages, eSignatures, eRecording, and eNotarizations. So, why is it so blasted hard to move forward into eBliss?

For a long time, I thought the problem was notaries.

No--for once, notaries are not the problem. 
Sure, we might have tried to drag our feet to keep it old school, stamping paper with ink, but we probably did very little to slow it down.

Not before this point, anyhow...not based on what I am reading now.

My sources say we could have put on P.F. Fliers,  greased the skids, and tried to pull electronic notarization forward and not gotten any farther than we are today.

The Paperless Mortgage Dream

The dream of a paperless mortgage swirled around in the great minds of the mortgage, title, and recording industries.  Those business sectors that were drowning in paper--that's where it all began.

They prepared for it, created standards for it...they created terms and discussed the:  eMortgages, eSignatures, eRecording, eNotarization, eVaults and so on.  And, that's where it seems to have a beautiful dream that hasn't gotten much traction.

Aside from notaries public, there are several other segments of the mortgage, title, and recording industries involved--the stakeholders.  They they have a great deal at stake, so to speak, just like notaries do.

Want to read something 
more fun?  Try 

Believe me.  Many stakeholders, other than notaries, have their issues with electronic mortgages.

Low demand for electronic or paperless mortgages is a problem.

Actually,  low demand by consumers plus the fact that stakeholders have reservations they aren't overcoming produced roadblocks to eProgress.

Just a side thought, but I'd bet if the demand was there, we'd all have our marching orders and be scurrying to do what needed to be done, or be banished. 

As a notary, you may wonder "Why is that even a problem?"  

It's not a problem to

But, no one is really asking our opinions, are they?

It won't be a problem, until it's a problem!!

We're not going to get an opportunity to weigh in, unless we know what's happening and are poised and ready to throw a little weight when it's time.

Knowing what's happening with notary technology is key to being able to position ourselves where we have to be in 2017, 2020 or 2026.

So, that's why I keep pushing and nosing around.

I'm that camel.

I'm looking under the edge of the tent at every opportunity.

Can't turn back time--we can do this. 

This is not about thwarting eEfforts.

We need to be ready to meet the technological requirements of our time.  Notary signing agents can meet the challenges of the big stakeholders, if we need to.  In fact, I think we've been more ready than some of our partners in the lending and signing game.

I'm not in favor of stopping progress toward the future.  Just because "the old way" worked in the past doesn't mean it is the best for the future.  I have used this analogy more than once, but it rings so darn true:

I think how wonderful that indoor plumbing must have been for my ancestors.

Not one of them said:

Outhouses have worked for 2,000 years and there's 
no reason to do all this fancy plumbing work.

No one said "There wasn't any indoor plumbing in the Bible and we don't need indoor plumbing now."

Stay focused on staying relevant!

For goodness sake don't get sidetracked by illogical backward thinking.  "It has worked for 2,000 years..."

This topic is too long to cover in one article.  

Tomorrow, I will start  listing stakeholders, their issues by sector, and why they are slow to join the inevitable march toward electronic notarization, paperless mortgages, and ultimately, remote notarization.

Don't miss a post! Follow along by email!