January 4, 2022
2021 was yet another progressive year in the consumer lending and real estate industries. Nine states enacted permanent remote online notarization (RON) laws, including New Hampshire, Illinois, and New Jersey, and Ginnie Mae approved the use of eSign and RON in connection with loan modification agreements.
To further add to the forward momentum, on Wednesday, December 22, New York Governor Kathy Hochul signed Senate Bill 1780C , making the Empire State the 38th state to approve a permanent RON law.
The decision to permit electronic notarization makes mortgage closings, loan modifications, and other legal and financial transactions more accessible and convenient for customers, lenders, lawyers, and loan servicers in the State of New York. In addition, this is a meaningful step towards digital transformation and adoption in the larger mortgage, real estate, and financial spaces.
Before the Governor signed Senate Bill 1780C, the state had previously approved an emergency measure that authorized the temporary use of RON, RIN, and video conference authorization. The legislation just signed into law mirrors, in many ways, laws already in effect in the majority of states across the country and gives the New York Secretary of State significant regulatory authority over its implementation. Notably, the new legislation eliminates what had been the temporary nature of electronic notarization and establishes RON going forward as a permanent option for businesses, notaries, and customers who wish to take full advantage.
Below are the most significant provisions of the recently signed New York RON legislation.
At the pandemic's start, New York issued a temporary RON ordinance. However, with the recent approval of Senate Bill 1780C, RON transactions will become permanent in the Empire State beginning June 30, 2022.
Until the new law officially becomes effective, all state-commissioned notaries can continue to notarize documents via RON technology, like Stavvy.
The permanent RON law will take effect on June 30, 2022. Until then, the state will extend the emergency measure so that notaries can continue to perform notarizations remotely.
RON has several advantages over traditional, in-person, pen-to-paper notarization. For those who wish to implement RON into their workflow, below are four potential benefits.
COVID-19 initially pushed RON into the spotlight and exposed consumers’ desire for remote online transactions. Now, nearly two years later, this new legislation makes New York the 38th state to pass a permanent RON law in the United States. With the majority of states within the US taking steps to enact the permanent RON laws, all 50 states may eventually approve and implement RON and authorize a fully digital mortgage lending and servicing experience.
For New York lenders, loan servicers, and lawyers interested in digitizing their workflows, streamlining their business, and keeping up with consumer preferences, now is the perfect time to invest in RON technology.
To learn more about Stavvy’s certified MISMO® compliant platform and RON capabilities, schedule a one-on-one demo with a member of our team.
To learn more about RON and its many benefits, check out our Complete Guide to Remote Online Notarization.
DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.