What is remote online notarization (RON)?

By definition, remote online notarization (RON) is the electronic notarization of a document.?

The title and settlement industry is based on long-standing ways of doing business but RON offers an easier, more secure, streamlined way to collaborate. Overcoming the status quo is a tall hurdle – but RON can make it possible for you and your colleagues to simplify workflows, saving time and money.

This article will explore the history of RON in the mortgage industry, common types of eNotarization, and questions to ask yourself about your title and settlement business before going RON.

The History of RON?

“Going RON” is not an entirely new concept in the title and settlement industry. This hot-button topic has been discussed for nearly 10 years, before gaining significant traction during the height of the COVID-19 pandemic.?

Due to the electronic nature of the notarization, RON empowers title agents to perform closings from anywhere with WiFi. In fact, we recently connected with a title and settlement agent who closed a deal with a customer signing from the beach. How great is that??

If the beach is the starting point, the options are limitless. With RON, the world is quite literally your title and settlement office.

RON Use in Title & Settlement

For many title and settlement agents, RON began as a temporary fix in a pandemic world, but today its benefits can be seen as long-term game-changers for the industry.

If you are still warming up to RON and its benefits, you may ask: “What makes RON use different from traditional or hybrid notarizations? And why should I make the shift?”

It’s true that there are other electronic tools for closings that you’ve likely heard of, or used – but RON is a fully-digital process from start to finish. Let’s take a closer look at these hybrid-digital notarization methods, and how they differ from RON.

Remote ink-signed notarization: During the pandemic, several states temporarily allowed remote ink-signed notarization (or RIN) as an alternative to RON. Similar to RON, the notarization process takes place over an audio-video platform. However, unlike RON, the signer must physically ink documents while the notary witnesses the wet-signature via a live, real-time video. Signers must then overnight, fax, or scan and email the ink-signed documents to the notary, so they can complete the ink notarization and provide the documents to the lender and title and settlement agent.

In-person electronic notarization or eNotarization: Similar to RON, in-person electronic notarization (IPEN) or eNotarization involves documents that are notarized electronically. The notarial seal, signature, or certificate is created and attached to an electronic record and stored in an electronic format. However, in most cases with eNotarization/IPEN, the signer must physically be present with the notary.

While these hybrid offerings provide quick solutions to “paper problems,” RON is the best solution for a fully digital process. RON is changing the foundational fibers of the mortgage industry, creating a unique set of benefits for you and your customers.

Will RON Improve Closings?

So, how do you know if RON is an appropriate business decision for you and your team? Start by asking yourself these three questions:

1. How do you currently prepare your closing documents? If you are already using electronic closing tools, adding in RON is a logical, and easy-to-implement, next step. If you still work primarily with physical paper for closings, RON may not fit into your workflow right now.
2. Where is your homeowner physically located? Where your homeowner lives and is able to drive for a closing, plays a role in the need for RON. With gas prices rising, and the headaches inherent to in-person meetings, RON serves as an alternative, allowing homeowners access to closing from anywhere with a Wi-Fi connection.?
3. How and when will the notarial seal be applied? RON technology enables real-time application of the notarial seal, speeding up the closing process. RON allows simultaneous digital signatures and notarial seal application during the closing.

Check out our blog post on RON questions and answers for a more in-depth explanation.?

What are the Business Benefits of RON?

In case you are not completely convinced that RON is the way to go for your title and settlement needs, here are some of the clear-cut business benefits of RON:

1. An all-around better customer experience
2. Reduces the chance of errors
3. A more secure way to work
4. Saves time and money and increases productivity
5. Reduces paper and saves trees

So, are you ready to take your eclosings to a new level with RON? Download our eBook on getting started with RON.