E-Closing in New Jersey – Is Your Head Spinning Yet?
There are so many moving parts to the new E-Mortgage and E-Closing world, that we thought we would share a quick glossary of terms:
RIN: Remote Ink-signed Notarization
Notaries perform notarial acts on paper documents delivered to the signer in advance. The “in-person” notarial act or witnessing occurs using video conference technology, a process Fannie Mae has labeled “remote ink-signed notarization” (RIN). In general, RINs use solutions such as GoToMeeting, Microsoft Teams, WebEx, or Zoom to satisfy the requirement that a document signer personally appear before a Notary. The Notary verifies the identity of the signer based on existing state Notary laws or by methods specified in the temporary order. Paper documents are signed in pen and ink and then returned to the notary via overnight mail or hand delivery. Upon receipt, the notary then affixes his or her stamp/seal and signature to the original loan documents.
RON: Remote Online Notarization
RONs, by contrast, typically use a dedicated platform that integrates in one system a video conference capability, multi-factor methods for verifying the identity of the signer that uniquely apply to remote online notarizations, and an electronic signing room that presents the electronic document in real time for signing using electronic signatures by the document signer and Notary.
Recent emergency legislation signed by Governor Murphy is still being interpreted by County Clerks and Title Underwriters to determine whether its RIN, RON or permits a hybrid electronic signature by the borrower and ink signature of the notary.
DOB: Date of Birth
Just one component of KBA required for Remote Online Notarization
KBA: Knowledge Based Authentication (Static & Dynamic)
Series of unique questions designed to verify a signer’s identity. A copy of a driver’s license on Zoom is not enough. Purchasers may literally be asked about contents in their wallet.
SS#: Social Security Number
Another key requirement for KBA but not always required
TIN: Tax Identification Number
Along with U.S. credit, some foreign nationals can sign remotely if they also have a US TIN
POA: Power of Attorney
Some lenders allow a disinterested 3rd party, such as a title company staff attorney, to be designated as AGENT via RON so that AGENT can execute documents on behalf of the absent borrower. See details from Fannie Mae below.
CAR: Yes, it is what is looks like…. But have your borrowers be ready because among the test questions that make up Knowledge Based Authentication, they may have to remember the color of their first car! Settlement Professionals might want to conduct these tests a day or two before remote signing to ensure answers can be recalled.
More Information Regarding E-Closing Terms
Notarization and Power of Attorney info from Fannie Mae
RIN: Per Fannie Mae, a Job Aid for COVID-19 Temporary Flexibilities
For the purposes of illustration only, a typical RIN may be as follows:
- the paper closing package is delivered to the borrower,
- the notary examines a government-issued photo identification using the audio-video technology,
- the notary uses the audio-visual technology to witness the borrower ink sign the document,
- the borrower returns the document to the notary (via postal mail, delivery service, or in person), and
- upon receipt of the package, the notary physically applies his/her notarial seal or stamp to the loan documents. A RIN can be distinguished from a “remote online notarization” or “RON” in which the notarial documents are being signed and tamper-sealed electronically, with the notarial seal being applied electronically.
Thank you for allowing Two Rivers Title to be your go-to source for E-Information!