eNotarization Are We There Yet? Bill Anderson Vice President, Government Affairs

About the NNA Model Notary Act/Model Electronic Notarization Act Notary Public Code of Professional Responsibility National Notary Magazine/Notary Bulletin U.S. Notary Reference Manual Notary Hotline Notary Essentials online course Half of Fortune 100 rely on NNA training NotaryEmployer.org (Trusted Notary™ program for employers of Notaries) NNASuretyBonds.com (escrow, title and commercial bonds) Notary compliance services

Key eNotarization Terms Electronic notarization (i-ˌlek-ˈträ-nik • nō-tə-rə-ˈzā-shən) A notarial act using electronic records, signatures and seals Electronic signature (i-ˌlek-ˈträ-nik • ˈsig-nə-ˌchu̇r) An electronic sound, symbol or process executed or adopted by a person with intent to sign a record Electronic seal (i-ˌlek-ˈträ-nik • ˈsēl) Notary commission information or a graphic image containing such information used to authenticate an electronic notarization

What Is Notarization? Witnessing Act Notary Public

Notarization vs. eNotarization Witnessing act Medium: Paper Tools: Ink pen and stamp/seal eNotarization Medium: Record Tools: Electronic signature/seal

Types of Electronic Signature Digitized Signature Digital Signature Voice Click Signature PIN Typed Name

How Are eNotarizations Performed? Desktop Apps Mobile Apps Web Apps

First Official Pilot: October, 2000

Washington State Pilot: October, 2001

eClosings: What We’ve Learned Signing experience is crucial Notary errors are reduced Notaries add value

eSignature/eNotarization Timeline Freddie Mac accepts eSignatures 2001 Fannie Mae accepts eSignatures 2002 Model Notary Act with Article III Production-level hybrid closings 2005 Early eClosing pilots in Florida and Utah 2008 2000

eSignature/eNotarization Timeline IRS accepts eSignatures on Form 4506-T 2012 FHA accepts eSignatures January 30, 2014 2014 First FHA eClosing March 18, 2014 CFPB launches eClosing pilot 2015 Financial crisis/housing market correction 2008 2007

Allows Notaries to Use e-Signatures Uniform Electronic Transactions Act and/or Uniform Real Property Electronic Recording Act

Additional eNotarization Statutes/Rules

Regulatory Policies LOW MEDIUM HIGH Enabling statutes Electronic seal statutes Registration or notification Separate commission Tamper-evident signature Administrative rules Broad administrative rules Performance standards System provider approval Extensive statutes Course and/or exam Ethical conduct provisions Technology specific The categories are somewhat subjective “High,” “medium” and “low” are not necessarily determined by the number of policies implemented by a state, although “high” and “medium” states usually have two or more Not all states in a category have implemented all of the policies within the category

Regulation of eNotarization

Examples Low: Texas Medium: Florida High: North Carolina Gov’t Code § 406.013 Medium: Florida FS § 117.021 FAC 1N-5.001 and 1N-5.002 High: North Carolina NCGS Chapter 10B, Article 2 “Electronic Notary Act” 18 NCAC Chapter 07C, Subchapter B “Electronic Notary Standards”

2017 Legislation Introductions Electronic notarization Remote notarization Both

Remote Notarization Remote notarization (ri-ˈmōt • nō-tə-rə-ˈzā-shən) A notarial act in which the Notary and signer appear before each other using real-time audio-video communication Let’s see one in action! Remote notarization demo courtesy of SIGNIX (YouTube)

Remote Notarization Timeline Virginia enacts remote statute 2011 Montana enacts remote statute 2015 Lender, title and GSE support remote acts 2016 9 states introduce remote bills 2017 Utah enacts first-ever remote statute 2008 2000

Remote Notarization Issues Physical vs. Remote presence Location of signer/Notary Jurisdiction of remote act Coercion of signer Paper or electronic record Identifying signer of remote act Certificate of remote act Recordkeeping of remote act Interstate recognition

Resources National Notary Association Model Electronic Notarization Act What Businesses Need To Know About eNotarization: Technology, Trends & Webcams Is Video Notarization The Next Big Thing? (YouTube) National Association of Secretaries of State Remote Notarization Task Force

Vice President, Government Affairs Contact Bill Anderson Vice President, Government Affairs banderson@nationalnotary.org 818.739.4064