On April 14, 2020, Fannie Mae issued a guidance on the procedures it considered prudent in Remote Ink-Signed Notarization (RIN) closings, and specifically distinguished that the prior remote online notarization (“RON”) guidelines of the Fannie Mae Lender Letter LL-2020-03 do not apply to RINs. Freddie Mac had issued a similar guidance on April 10, 2020 regarding RINs (see answer to question 6).
Fannie Mae provided that the following minimum standards represent prudent closing processes:
- review of the government-issued photo ID that has a signature via a two-way audio technology and capture of such photo ID via a photocopy or other electronic image;
- system measures to (1) prevent interference with the authenticity, integrity and security of the portions of the notarial ceremony that are conducted via the audio-visual technology, and (2) protect the electronic record and backup record from unauthorized use;
- the notary performing the RIN should keep a backup of the electronic record;
- recording of the portion of the notarial ceremony conducted via the audio-video technology with storage for the minimum period required by the applicable laws or if no period is specified in the applicable law, for seven years;
- the lender should maintain (or cause to be maintained) the recording of the portions of the notarial ceremony conducted via the audio-video technology for the life of the loan.
The RIN procedures of Governor Ned Lamont’s Executive Order No. 7Q consistent with the minimum standards for a prudent closing process outlined by Fannie Mae. Governor Ned Lamont’s order also imposes additional requirements above those set forth in the Fannie Mae guidance. Borrower’s counsel can reference the Fannie Mae Guidelines to establish that the Connecticut RIN is consistent with these prudent closing procedures in the event a lender challenges the Connecticut procedures.
Gregg T. Burton
(203) 784-3173; firstname.lastname@example.org
(203) 252-2693; email@example.com
Patrick J. Hanna
(203) 252-2667; firstname.lastname@example.org
Jeffrey R. Houle
(203) 252-2646; email@example.com
Nishani D. Naidoo
(203) 252-2653; firstname.lastname@example.org
Michael P. Sweeney
(203) 252-2690; email@example.com