Why IPEN, RON, and RIN are vital to your mortgage closing strategy
The rise of IPEN, RON, and RIN
Alternative solutions to traditional in-person notarization were starting to gain traction before the Covid-19 pandemic. But the demand for IPEN, RON, and RIN solutions has skyrocketed over the past couple of years, mainly because meeting in person with a notary to sign closing documents wasn’t always possible or realistic. Mortgage companies had to find a way to move applications forward in our newly remote world. But this begs the question: If the growing use and popularity of these solutions rose out of necessity and urgency over the past couple of years, are they the way of the future?
By now, we’ve learned that a digital experience is no longer something mortgage companies should strive for in today’s market. Implementing these solutions are essential for long term growth and survival. And even though we can’t predict the future, it’s probably safe to say that moving forward, mortgage closings will look different than the standard in-person process that we’ve always known. Let’s take a closer look at the traditional process and compare it to some of the new notarization options that are becoming more widely available.
Traditional In-Person Notarization
This is the standard closing process that most of us are very familiar with, where the borrower meets with a notary in-person to complete the mortgage closing process. All paper documents are ink-signed by the borrower and the notary has a paper journal they use to notarize or record the event with a blue or black pen and a stamp.
What is IPEN?
IPEN refers to In-Person Electronic Notarization and is performed with both the borrower and the notary physically present. During an IPEN closing, some closing documents may be eSigned, while others are ink-signed. The notary then records this information either in a paper journal or electronically (eNotarized) on a device.
What is RON?
RON is defined as Remote Online Notarization and occurs when closing documents are signed, notarized, and stored digitally. The process is completed using secure audio-visual technology and after the signing, the video recording of the event, along with the closing documents, are stored securely and electronically.
What is RIN?
RIN (Remote Ink-Signed Notarization) is similar to RON, due to the fact that audio-visual technology is used to conduct the closing process. A main difference between the two is that a RIN eClosing is paper-based. During the virtual call, the borrower ink-signs the documents that they then mail to the notary. The notary then ink-signs these documents on their end to complete the process.
Where do we go from here?
During the pandemic, some states issued emergency legislation to permit remote notarization. In addition to that, other states have already approved the full use of RON eClosings. But since this varies state by state, the closing process may continue to be in-person or hybrid vs. fully digital for the near future, depending on your location.
The use of digital closing solutions will only continue to grow as we enter this new era and now is the perfect time to look at eClosing solutions if you haven’t already done so. A convenient, secure, remote workflow will become an essential way of doing business and will provide customers with the experience that they want: one that best fits their needs and works for their schedule.
For more information on how to take the next step in your eClosing journey, talk to an ICE Mortgage Technology expert.