State-level credit union groups are calling on their legislatures to expand permissions for the usage of remote notarization as the pandemic drags on.
Many states instituted those rules on a temporary basis early last year, but the need for extensions arose as 2020 came to a close. The issue is an important one for many credit unions, since mortgage activity surged last year, with some estimates suggesting home lending accounted for over 90% of credit union loan growth in 2020.
A number of state legislatures have expanded permissions for remote notarization that were instituted early on in the pandemic, easing the loan-closing process for many lenders.
In New York, according to the New York Credit Union Association, Gov. Andrew Cuomo has extended permission for remote electronic notarization until Jan. 29. An online posting from the league said it continues to push for legislation on the issue because such a law “would significantly reduce the number of direct physical interactions that would otherwise be necessary as New York reopens, and [provide] notaries to rural areas without previous access to these resources.”
Similarly, provisions extending the use of remote notarization have been approved in Michigan. According to the Michigan Credit Union League, the league and the Michigan Bankers Association worked alongside the state bar association, Michigan Land Title Association and others to extend a provision permitting the use of remote notarization. A previous law would have only permitted it until the end of 2020, but that has now been pushed to June 30.
To the South, Jared Ross, president of the League of Southeastern Credit Unions, which serves Alabama, Florida and Georgia, recently published an
Some states have already made moves to make the tool permanent for lenders. In October, Penn. Gov. Tom Wolf
Only about half of all states
