Detroit’s Quicken Loans, using the Clear Sign eClosing platform from Detroit FinTech company Nexsys Technologies, has become the first mortgage lender in Michigan to complete the mortgage process using remote online notarization, known as RON.
In a RON eClosing, the consumer and the notary perform a mortgage closing digitally from separate locations using the internet and an audio/video connection. The fully digital process eliminates the need for the traditional pen-and-paper-intensive closing process. Currently, 22 U.S. states permit RON eClosings.
“What’s most exciting for me are the possibilities that this new technology opens for homebuyers and those looking to refinance here in our home state,” says Jay Farner, CEO of Quicken Loans. “Imagine a homebuyer who is halfway across the country on a vacation or business trip being able to close the mortgage for their family home, or a busy nurse who only has a very short time window that doesn’t allow them to leave their workplace. I can’t wait to see all the ways we continue to make the mortgage experience easier for our clients in Michigan and throughout the country.”
Michigan’s first RON eClosing was a refinance transaction for a metro Detroit homeowner that was completed by Quicken Loans. Amrock Inc., a Detroit-based national provider of title insurance, property valuations, and settlement services, was the title and closing agent for the mortgage. The notary who completed the closing was Amrock’s Julie Felts, the first electronic/remote notary to be approved and registered by the state of Michigan.
“Michigan took proactive measures to allow both eNotarization and remote online notarization in December 2018, and Nexsys worked closely with the Secretary of State in getting our platform fully approved to accept closings,” says Michael Lyon, executive vice president of Nexsys Technologies. “We are proud and humbled that Clear Sign was the first eClosing platform to close a RON transaction in Michigan. This was particularly important to us, since it’s our home state. Now we’re setting our sights on neighboring states and won’t slow down until all our clients have the ability to close their mortgage from anywhere, anytime.”
Michiganders who work with Quicken Loans and choose Amrock as their title company can close their mortgage with a RON eClosing if their refinance loan meets eligibility requirements. RON eClosings are expected to be available for purchase loans in the state in 2020.
There are three types of eClosings: hybrid, in-person electronic notarization (IPEN), and RON. In a hybrid eClosing, the consumer and the notary meet to complete a mortgage closing with both traditionally and digitally signed documents. An IPEN eClosing is very similar to the hybrid process, but has no pen-signed paperwork. The signing agent meets with the consumer face to face and all documents are signed digitally on a tablet or laptop. Depending upon state legislation, consumers in any state can work with Quicken Loans, Amrock, and Nexsys to complete an eClosing. The type of eClosing available to them, however, is dependent upon individual state legislation.
Nexsys launched Clear Sign in April 2019. Since then, more than 60,000 mortgages have been eClosed using Clear Sign, making it among the top eClosing platform based on Mortgage Electronic Registration System registered notes. The platform accommodates all three types of eClosings, making it a versatile platform for lenders who want to start with hybrid eClosings, but may eventually offer RON or IPEN transactions.
In addition to Clear Sign, Nexsys created Clear HOI, a platform that provides lenders and insurers a way to instantly and accurately verify coverage, resulting in improved closing times and processing costs. Nexsys’ first tool, Clear Path, brings together insurance, appraisal, and closing documents in one location where they can be accessed by all who need them during the mortgage closing process.