Part Two: Your Guide to Remote Online Notarization in 2020

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LenderClose has created a comprehensive, four-part guide to Remote Online Notarization (RON) – an important piece of the digital lending toolkit – covering topics including what RON is, how it works, implementing RON, and an overview of RON technology itself. This is the second in the series and provides an overview of RON.

The call for digitization of lending services was happening long before the world was rocked by the COVID-19 pandemic. The pace and scale of digital adoption varied widely among financial institutions – that is, until stay-at-home guidelines and social distancing became a universal reality almost overnight.

Accelerated digitization is now a must for every credit union and community bank for financial institutions that want to maintain responsive and seamless lending services during a global pandemic and well beyond.

Also: Check out our glossary of lending terminology.

Make sure to read Part OnePart Three, and Part Four of our four-part guide!

HOW RON WORKS

How is the audio-video acknowledgement of the signer’s verification collected and stored?

In a RON transaction, the audio-video of the notarial act is recorded and stored in the cloud.

Once all signers have joined the session, the notary public begins the recording for the notarial act. The notary public then asks signers to comply with the following:

  • Look into the camera so the face of each signer is clear.

  • Announce their first and last name.

  • Present their IDs on camera for the notary to validate.

  • Confirm with each person what they will be signing during the notary session.

How is the digital certificate of the signers collected and stored?

Each signer has a unique eSignature ID. Once the session is completed, the executed documents are securely transmitted via API into the LenderClose platform with a unique bar-code and a session ID number. The digital certificates are date and timed-stamped. The technology also logs the IP address of each signer.

How is the digital certificate of the signers collected and stored?

The notary stamp is a digital stamp applied by the notary at a click of a button during the notary session.

Where are recorded videos stored and for how long?

Video sessions for the notarial act are stored securely in the cloud and can be accessed by the notary public appointed to the transaction at any time. Records are saved indefinitely.

How does the borrower use RON?

Once a home equity or mortgage loan is clear-to-close, lending staff can schedule a date and time convenient for the borrower(s) to join a RON session.

RON works with most internet browsers on a computer, smartphone or tablet. An internet connection is required, as RON takes place in a live video conference session. 

The session is controlled by the notary public. Attendees simply need access to a computer, smartphone or tablet with audio and video capabilities. 

The process is the same as the physical notary process, however, it moves to an environment where the borrower and witness and/or any additional required party meet in a virtual environment:

  • Document(s) that need to be signed electronically or notarized are uploaded by the lender or notary public into the session in a PDF format. 

  • Proof of identity is validated using knowledge-based authentication (KBA) or other state requirements.  

  • The borrower is connected with a commissioned notary public through live video to confirm identity (usually a valid state driver’s license). 

  • Notarized documents are then captured and provided to the lender with the option to securely share with the borrower for download, save or share.

Are the signer activities tracked during the RON session? (For example, when signers execute each signature on the documents?)

Yes, each signer’s activity is tracked along with their IP address. A unique eSignature ID is attached to the overall session ID.

What is included in the eNotary certification post for each RON session?

An eJournal is maintained that contains the following:

  • Date/time of each RON session scheduled and executed

  • Type of documents executed (file name)

  • Unique session ID

  • Notary public name

  • Notarial act type

  • Date and time stamp on the documents executed

  • Notary public commission number

  • Notary public commissioned state

  • Notary public commission expiration date

  • Type of notarization (remote or in-person)

  • Total of pages uploaded for execution

  • Each signer(s)’ first and last name

  • Each signer(s)’ email address

  • Each signer(s)’ ID validation result

  • Each signer(s)’ address as it appears on the government issued ID

  • Each signer(s)’ IP address during the session

  • Each signer(s)’ unique signature ID that is connected to the overall unique session ID

  • Each signer(s)’ date of execution

  • Date and time the eJournal entry is created by the technology

  • IP address where session was created from

  • Session creation date/time

  • Recording of the notarial act

Learn more about the LenderClose RON technology by signing up for a demo or contacting us today!

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