DES MOINES, Iowa –An Iowa credit union has become the first in the state’s history to use remote online notarizations (RONs) to close a mortgage loan.
The loan was closed by Collins Community Credit Union in conjunction with fintech LenderClose and was made possible by the company’s newly launched RON solution. It was also made possible by an Iowa State Public Health Emergency Declaration, which suspended the requirement for a notary to be physically present for the signing of real estate loan documents, furthering legalization of RON in the state.
“We’re extremely proud to be a part of this historic moment, especially because of the innovation’s ability to help borrowers during a really critical time of unprecedented financial and lifestyle hardships,” said Stefanie Rupert, Collins Community Credit Union president and CEO, in a statement. “Our members expect us to live out our values, one of which is that our members matter more than their money. It’s our intention to always consider the person behind the transaction, and that is precisely what LenderClose helped us achieve today. We look forward to scaling this out to the rest of our borrower membership over the next several weeks and months.”
The member whose loan was first to close through the RON process was Kerra Martin.
Other CUs Adding Program
According to LenderClose, the RON solution for mortgage closings is expanding to several other credit unions, including Community Choice Credit Union, Serve Credit Union and Financial Plus Credit Union.
“Iowa’s credit union industry was proud to advocate for remote notarization during the 2019 legislative session with other strong collaborators like LenderClose,” said Murray Williams, president and CEO of the Iowa Credit Union League, in a statement. “While we knew at the time that some Iowans had barriers to visiting their credit union in person, none of us could have imagined the current situation. We thank Governor Kim Reynolds for the swift action that enables credit unions to harness the power of technology to help Iowans buy homes and refinance mortgages in a manner that is safe during this difficult time.”
Expansion Across U.S.
LenderClose cited data from the Mortgage Bankers Association showing 23 U.S. states have enacted RON legislation. More than 30 RON bills were introduced in more than 20 state legislatures during 2019.
LenderClose said remote online notarization enables online notarization of documents using audio and video technology. Documents are shared electronically, and both the signing and notary processes occur face-to-face in a virtual environment.