Was there a methodology for determining the states that are acceptable in the remote online notarization (RON) grid?
For states without an express and currently effective RON statute, we assessed the overall likelihood of that state’s recognition of valid RON acts performed out of state, and looked at a number of factors, including governors’ executive orders, applicable state laws, and applicability of the Full Faith and Credit clause of the U.S. Constitution (and any exceptions to its application). The state list was aligned with Freddie Mac and was reviewed and approved by FHFA.
The passage of a federal law is also contemplated in the language and would potentially supersede the need for state-by-state analysis.
For more information, refer to the published Lender Letter LL-2020-03, Impact of COVID-19 on Originations.