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 "Remote Notarization" What are your thoughts?
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Lee-AR

Arkansas
598 Posts

Posted - 03/06/2019 :  09:00:33 AM  Show Profile  Reply with Quote
As many states seem to be climbing onboard (what I consider) a trainwreck-in-the-making, wondering what my peers think/believe/will do about buying a seat on this train.
As it seems the states already onboard are now engaged in tweaking it as the flaws begin to appear: Oh, where, exactly, is the Venue? Now seems to be moving toward 'where the notary is'. Wonder how well that will work if a lawsuit needs to be filed.
Is that CA lender with a KS borrower gonna like filing it in...oh, TX or VA or any of the number of states that have or will have 'remote notaries'???

I am reminded of an ill-advised law that my state passed because far too many notaries (sadly, mostly in local banks) erroneously believed that venue meant the county in which they were commissioned. This 'wrong venue' situation made it hard for Lenders to file Foreclosure lawsuits so they found someone in the state legislature who would help rectify this problem and a law was passed that stated "Venue is EITHER the notary's home/commission county OR where the notarization took place". When I contacted my state's SOS about this, they said 'PLEASE continue to show venue as where notarization took place'. Wonder if a Lender can file a Foreclosure suit in cyberspace--silly question.

Another concern: The liability of 'identifying a signer' when, in fact, the notary isn't actually doing that but is RELYING on a 3rd party doing 'knowledge based authentication' (in other words...junk data picked up from the internet). The 3rd party isn't liable, but the notary would be. Note: I tried to set up an SS acct online, but, they asked me about past addresses of places I never even set foot in (bad info) and so I got turned down. So much for knowledge based authentication.

And, last, but by no means least, is the fact that this capability is expensive and 'proof' must be maintained for a long time (at what expense???) This, by itself, seems to me to be a forgone conclusion that Lenders & Title Companies will NOT want to rely on an independent notary and all such business will go to a large corporation who, theoretically, will have the bucks and technical capabilities FOREVER (or until they go out of business--whichever comes first).

Your thoughts???

If you don't value your time and experience, nobody else will.
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