Yesterday, we sent a law letter announcing Governor Abbott’s suspension of the in-person requirement for traditional notarizations. We have received a number of inquiries as to whether this order suspends the requirement that home improvement loans or home equity loans be closed in an authorized location (attorney’s office, title company’s office or lender’s office).
The requirement that 50(a)(5) home improvement loans and 50(a)(6) home equity loans be closed in an authorized location has not been suspended. The Governor’s order does not impact this requirement so borrowers will still need to be physically present in an authorized location for closing home improvement or home equity loans.
Even though the member must still be physically present in an authorized location for a home improvement/home equity loan, credit unions may still implement no-contact closings. For example, the member may be in the closing room of an authorized location, while the closer is in another room. The closer could guide the member through the closing via a audio-visual communication and utilize the emergency remote notarization process to notarize documents.
If you have any questions on this, please contact us.
Sincerely,
BairdLaw
242 W. Sunset, Ste. 201
San Antonio, TX 78209
210-828-5844
www.bairdlaw.com