How Will Digital Closings Impact You? 4 Things Texas Title Agents Should Know
Digital closings are here to stay. And with more states enabling online notarizations, we predict digital closings will soon follow suit as the standard way to buy or sell a home in 2018 and beyond.
Here’s what Texas title agents need to know about digital closings and how to stay ahead of big changes coming to the Lone Star state this summer.
1. Notaries will be able to add online notarization (and digital closings) to their toolkit.
Since the dawn of notarization during the Roman Empire, notaries have always served their customers in-person. But meeting with customers in-person wasn’t always the most convenient, especially if you’re bound to office hours in order to get it done.
Enter: online notarization.
With online notarization coming to Texas, notaries will be able to add one more tool to their notary toolkit. Starting July 1, notaries will be able to serve their customers whenever or wherever they may be: at home or abroad and at any time of the day.
By empowering notaries to serve their customers online, this means notaries will now be able to contribute to fully digital closings.
2. Online notarizations are enabling fully digital closings.
With notarization getting a digital makeover, this has practical applications to the real estate world.
Currently, home buyers and sellers are able to search for a home online, get approved for a loan online, but when it comes to the last mile of the home closing, it’s bogged down in the analog world. It’s inconvenient, paper-heavy, and anything but technologically-advanced. Online notarizations, which go into effect on July 1 in Texas, will forever change how homes are bought and sold in the digital era. Meaning, gone are the days of having to orchestrate the closing among all the parties involved.
What does entail for your customers?
Online notarization is powering a greater amount of choice for your customers in how and when they’d like to close on their home. Now, title agents will be able to offer digital closings to their customers which means they can close on their home without ever having to leave the couch.
How’s that for customer service?
3. 1,800 counties in the United States accept eRecording.
Making the change to digital closings isn’t as difficult or daunting as you would think. If you think about the current process of recording, we know it takes a huge amount of time, effort, and cost. With eRecording growing in acceptance, many of the issues title agents encounter in the paper world are solved in the digital world.
Consider this: 1,800 counties in the U.S. are eRecording counties, which covers 85% of the U.S. population. In Texas alone, there are over 60 counties accepting eRecording, with many more coming on-board every day.
With so many counties accepting eRecording, it’s never been easier to e-record your titles, deeds, mortgages, and more.
For Texas title agents, this is great news. By employing eRecording (versus recording via paper), the time requirements, costs, errors, and labor it takes to record are greatly reduced. Think about what more you can accomplish by never having to ship closing documents ever again!
4. As more states adopt online notarization, digital closings will become more prevalent than ever.
2018 is the year of online notarization. Texas shares the title as an early adopter of legislation allowing for online notarization, alongside Virginia, Minnesota, Vermont, Tennessee, Nevada, and others. The Texas legislation was unique in that it was drafted by a coalition of mortgage bankers, title agents and underwriters, realtors, credit unions, notaries and technology leaders.
With online notarization slated to go live into even more states, coupled with underwriters’ expansion into new states in 2018 and interstate recognition of notarial acts, this sets the stage for digital closings to become the new standard in the mortgage industry.
This enables Texas title agents to be among the first in the industry to take advantage of digital closings and online notarizations and lead the digital path within mortgage.
Texas title agents: want to learn how you can build your digital strategy? Join us for Digital Mortgage Trailblazers, our 3-city Texas roadshow in July.