Closing Online Mortgages May Soon Become Legal Across the US: What You Need to Know


A recently introduced bill to the House of Representatives will allow all 50 states to use an online notary. (iStock)

Digital mortgage closings are on the rise, especially in 2020, after states issued household orders and many transactions had to be performed remotely. But while some states allow remote online notarization (RON) or the ability to close a home loan from any internet-connected device, other states do not.

Recently members of Congress introduced a new bill This would make remote notarization instantly legal in all 50 US states. Representatives Madeleine Dean, D-Penn., And Kelly Armstrong, RN.D., along with 31 other members of the House of Representatives, re-introduced the bipartisan Law on the Protection and Security of Trade Using Remote and Electronic (SECURE) Notarization of 2021, HR 3962

Obtaining a mortgage is now easier than ever as 2020 hastened the adoption of permission by a notary to perform remote notarization in many states on an individual basis. Virginia was the first state to pass the RON law in 2011, but other states have joined them years later, enacting many more laws in 2019 and 2020. If you are looking to buy a home and want to know what options you have, visit Credible to compare multiple lenders at the same time.


Currently, 29 states have some form of current standing legislation on RON which allows a notary to notarize documents on the Internet, and another 19 people introduce temporary permits to obtain RON in case of infection with COVID-19. In fact, remote notarization is prohibited in only two states: California and South Carolina.

“This approach to notarization is needed and in demand throughout the United States,” said Diane Tomb, CEO of the American Land Titles Association. said in a statement… “The Safe Notarization Act allows businesses and consumers to carry out important documents through two-way audiovisual communications.

“Current requirements for a signatory to be physically present in front of a notary are often impractical and sometimes impossible due to social distancing restrictions caused by the COVID-19 pandemic, as well as other obstacles to personal signing, such as military service abroad and time constraints, – said Tomb.

Formerly Senators Kevin Kramer, M.D., and Mark Warner, Virginia, re-introduced Safe Notarization Act 2021 in the Senate on May 13, 2021.

Since many states allow remote closing of real estate, closing a mortgage is much easier than ever before, as many home buyers may be asked to simply use an online notary to notarize documents and close their home loan. Visit Credible to start comparing home loan options and determining the interest rate.


According to poll from ALTA

Online notarization companies like Notarize have also seen significant growth as home buyers moved away from using a traditional notary. In 2020, the company tested about 600% annual revenue growth

If you are thinking about getting a mortgage and want to see the options available to you, visit Credible to compare multiple lenders at the same time.

The rise in house prices threatens overheating of the summer housing market

“The SAFE Notarial Act is needed to support new homeowners and will help apply a certain degree of transaction freedom to the flow of important property closings as Americans begin to fully emerge from the pandemic,” said Bill Killmert, Senior Vice President, Law and Policy of the Mortgage Bankers Association.

Are you thinking about completing your online mortgage closure? Or are you at a different stage in the home buying process? Contact Credible speak with a home loan specialist and get all your questions answered.

Have a financial question but don’t know who to contact? Write to a safe money expert at and your question can be answered by Credible in our Money Expert column.

Source link


Please enter your comment!
Please enter your name here