Congress Should Modernize Notarization for Homebuyers & Other Americans
The past two years have dramatically altered our perception of the role of technology in our lives. As the demand for social distancing increased, so did our dependence on technology to connect us with loved ones, medical professionals, educators, and more. And just like other sectors, the real estate industry — which traditionally conducted business face-to-face – found ways to adapt.
During the COVID-19 pandemic, the homebuying process became increasingly digital. Many states also passed legislation that allowed for virtual signing of documents through remote online notarization (RON). This gave many homebuyers and homeowners in these states the opportunity to virtually close on their new house or refinance their mortgage without needing to visit a notary in-person.
Despite the progress individual states have made to increase access to remote notarizations, 8 states still do not have permanent law authorizing RON. Now more than ever, it is time for Congress to make RON a permanent option for homeowners and homebuyers nationwide.
There is good reason to believe that 2022 may be the year the SECURE Notarization Act, a bill that would permit every notary in the country to securely notarize documents remotely, finally gets passed into law. Just two weeks ago, the House of Representatives approved the bill with overwhelming support.
It’s hard to believe that just a few years ago, only a handful of states permitted virtual real estate closings, due to out-of-date notarial laws. With the advent of RON, however, homeowners and homebuyers were able to conduct the entire notarization process online through secure authentication methods. RON drastically improved the entire notarization process – allowing for flexible scheduling and increased convenience.
The SECURE Notarization Act has 128 bipartisan cosponsors in the House, and the Senate companion has 11 across both parties — and supporting the SECURE Notarization Act is common sense. The national framework established by this bill would complement existing state laws, allowing states the flexibility and freedom to implement their own RON standards, while at the same time ensuring consumer protections.
Beyond real estate transactions, notarizations are also required for other critical documents like powers of attorney and advance health care directives. Particularly for military personnel, RON is a game changer. For example, thanks to RON, one homebuyer stationed overseas in South Korea was able to close on his dream home despite being nearly 7,000 miles away. Closing on the home would have been impossible without this option.
From Congressional hearings to doctor’s visits, the COVID-19 pandemic taught us that an in-person experience is not always necessary. It is up to Congress to ensure that all Americans have access to safe and efficient innovations that make our lives safer and easier. Now is the time for the notarization process to finally enter the 21st century, and for the Senate to follow the House in passing the SECURE Notarization Act.
Diane Tomb is the CEO of the American Land Title Association.
Victoria Espinel is the President & CEO of BSA | The Software Alliance.
Jim Nussle is the President and CEO of the Credit Union National Association.
Ed DeMarco is the President of the Housing Policy Council.
Rebeca Romero Rainey is the President and CEO of the Independent Community Bankers of America.
Robert D. Broeksmit is the President and CEO of the Mortgage Bankers Association.
B. Dan Berger is the President and CEO of the National Association of Federally-Insured Credit Unions.
Jerry Howard is the CEO of the National Association of Home Builders.
Kevin Mayeux is the CEO of the National Association of Insurance and Financial Advisors.
Leslie Rouda Smith is the President of the National Association of REALTORS.
