MBA State Relations Committee Update State Highlights
In This Section
Advocacy News and Information From the Latest Issue of the MBA State Relations Committee Update
Indiana Approves Law Enabling Remote and Electronic Notarial Acts: Governor Eric Holcomb signed SB 372 which allows Indiana to join Virginia, Montana, Texas and Nevada in permitting remote online notarizations (RON). This is the first state in 2018 to enact such legislation and it was passed with only one nay vote across both chambers. It was also enacted shortly after the release of the National Association of Secretaries of State's Revised National Electronic Notarization Standards. A coalition of members from MBA and the American Land Title Association (ALTA) worked together with the Indiana MBA to seek enactment of this new law, which embraces the MBA-ALTA model bill for RON released last December. Moreover, Section 61 of the law requires the Indiana Secretary of State to promulgate new RON rules, and Section 63 includes a new Chapter of Indiana statute for Remote Notarial Acts. This provision states that the new RON law will apply after June 30, 2019. SB 372 embraces the needs of a changing landscape that increasingly necessitates the use of online, mobile and other electronic means to serve consumers.
National Association of Secretaries of State Approve Remote Online Notarization Standards: At their Annual Meeting in Washington, D.C., the National Association of Secretaries of State (NASS) took a big step to drive uniformity across states in the adoption of remote online notarization (RON) when the NASS Remote Electronic Notarization Task Force met to review and affirm draft RON standards. The group had developed its original in-person, electronic notarization standards in 2006 and the Task Force began meeting two years ago to update them. The Task Force's addendum to the NASS in-person electronic notarization standards to accommodate RON were adopted and can be viewed here. Ahead of the meeting, MBA and the American Land Title Association (ALTA) wrote to the co-chairs expressing support for their proposal. Both associations believe the NASS standards will provide strong consumer protections for all users of this technology, as well as help mitigate risks when bringing this new technology to the marketplace. Moreover, the NASS standards are consistent with the MBA-ALTA model state legislation to permit RON, which can be reviewed here along with other RON campaign materials.
Streamlined Advertisement Disclosures Bill Advances with Help of MAA Call to Action: A bill to streamline advertising disclosures in Illinois was approved by the State Senate's Financial Institutions Committee on Wednesday. SB 2615 received the support of a Mortgage Action Alliance members in Illinois ahead of the vote, because the bill embraces an MBA initiative to create uniform requirements among the states. Currently, state licensing disclosures for print and electronic advertising are not achieving their intended objective of informing consumers, because they convey little useful information. In fact, when advertisements from companies licensed in multiple states appear in print or on television, the preponderance of different state licensing disclosures render them collectively invisible or meaningless to consumers. MBA has urged states to instead require companies display just their unique NMLS identifier and the web address of the consumer facing pages of the NMLS system, or www.nmlsConsumerAccess.org. NMLS Consumer Access is a fully searchable website that allows the public to view information concerning state-licensed companies, branches, and individuals licensed and registered through NMLS. The bill now goes to the Senate floor and if ultimately enacted into law it could serve as a vehicle for other states to emulate.
CSBS Delays the Release of NMLS 2.0 to Q2 2019: The Conference of State Bank Supervisors (CSBS) recently announced they will delay the launch of NMLS 2.0 to the second quarter of 2019. The update to the National Multistate Licensing System (NMLS) was originally slated to launch in September 2018. Tim Doyle, Vice President of Policy stated in the release, "As SRR staff has monitored the progress of NMLS 2.0 development, we determined there were too many risks to being able to confidently deliver a high-quality product by September 2018. As a result, the SRR Board of Managers decided on a new target for the launch of NMLS 2.0, to be sometime in the second quarter of 2019." The NMLS 2.0 delay will likely push back the scheduled update to the Mortgage Call Report (MCR). CSBS' proposed changes to the MCR are currently out for public comment. The official request for public comment can be found on the NMLS Resource Center.