Real estate closings can now happen remotely in most states, a shift that has shifted much of life online during the pandemic. Mortgage lenders are urging other states to join in, though lawmakers have reservations.
Today, 43 states have laws permitting permanent remote online notarization, which is the basis for virtual shutdowns, up from 22 at the start of the pandemic, according to the National Notary Association. Seven remaining states, including California, Connecticut, Georgia, Mississippi and South Carolina, have not enacted such legislation, although bills in Delaware, Massachusetts and Washington D.C. are about to become law.
During a remote lockdown, home buyers video conference with lenders, lawyers and notaries verifying identities. Documents are electronically signed.
In a slowing housing market, mortgage lenders say they are prioritizing new technology-assisted processes, including virtual closings.
“It’s really not a technological limitation; we now have all the technology to allow you to do a fully digital shutdown. It’s really the legal innovation that needs to happen,” said
Brian Woodring, CIO of Detroit-based Rocket Mortgage.
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chief information officer of Detroit-based Rocket Mortgage LLC.
California lawmakers have been working to enact legislation that would allow online remote notarial services. A bill was passed by the state assembly this year, but bottlenecks remain that slow progress in the state senate.
