History was made recently in North Carolina in the mortgage industry. Karen and Jason Boccardi were the first ever to finish a refinance of their home’s mortgage by doing the first ever “eClosing”. They own a property located in Winston-Salem, North Carolina. The home itself was not historical at all. Additionally, nothing about the refinance itself was even historical or special at all. The refinance that was done on their property was completely done paperless. This is a first for the state and this was what made it historical.
Not A One-Time Event
They were the first couple in the history of North Carolina, along with their lending bank called North State Bank, to perform a complete refinance of a mortgage completely online. Additionally, this is historic because only a few electronic eClosings have been performed in the whole nation at this point. The government regulators have said that this eClosing that was performed in North Carolina was not a one-time event. It was the start of a new-age beginning in how mortgage refinances and other big lending practices will be done from now on. It is a step into the future and will be a lot easier to complete for future customers and bank employees.
New Age For Filing Practices
The state wants this to become the new way of doing things. The Secretary of State said that it is essential that this type of eClosing should become a regular option for both lenders and customers because of the countless benefits that it offers compared to the alternate option of filling out paperwork by hand. The secretary has been a long-time advocate for bringing traditional business practices into the future in North Carolina. They see it as a better way to compete at both national and international levels. The agency in the state has led the charge along with many of the voters in the state to start offering more paper-free, electronic recordings of many government-required applications for mortgages, land records and other filings.
E-Notary Services Added
The Secretary of the State in North Carolina is also the notary public regulator. They have worked hard to develop certain curriculum and standards for the status of the electronic notary, also known as the eNotary. Any notary with this type of status is allowed to attach digital versions of their notary stamp to any electronic forms of legal transactions. These will be considered as legal as any paper-based filings with traditional notary stamps on them. This eNotary move was essential in moving legal filings into this new age of technology. Both institutions and people will still want and need to know that a notary was public during the signing of a financial document to confirm a signer’s identity. However, it will be much quicker and easier for the notary to move the document through electronic means as opposed to it being moved from paper pile to paper pile.
Same Features And Safeguards
The secretary for North Carolina has stressed that the new addition of eClosing procedures is just as safe and has all of the same features as any mortgage closing that is done on paper. Even with an eClosing, the notary will require the physical presence of the signers. The standards in security are still as important as ever with these changes in the way closings are done. They are merely a way to make the process easier and quicker for both the lenders and the customers. This first eClosing done had a bunch of testing elements included into it. The attorney for the Boccardis were present for the whole closing via a video link from Charlotte. The whole process was tested to its limits to see how it would work. Everyone involved is confident that the whole process will be much easier and quicker than traditional closings have been.
Safety Is Key
For many years, digital service vendors, lenders and government officials have worked very hard to ensure that the delivery of electronic and digital records were recorded as safely and securely as when they were done on paper in North Carolina. Many types of filings have been completed electronically for years now with things such as land records in North Carolina with no security issues thus far.
This is a winning scenario for all that are involved in a filing. The lender will be able to get their work done quicker and more easily. The borrowers get to complete their filings quicker and it will be easier to work around their busy schedules. For land records, the recordings are done instantly when done at the county’s registry of deeds. There are no delays or need for things such as copiers, couriers and travel.
The Secretary Of State is ready and willing to work hard with all lenders in North Carolina to get them updated on these types of eClosings. The main thing that everyone noticed during this first initial eClosing was that it was over so quickly that their efforts to make it a ceremonious event was ruined. However, it was ruined in a way that made everyone realize it was a success and that it is going to be a much better way for filing mortgage refinances and more.