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commercial lending transactions to define “commercial financing” and set specific disclosure requirements for commercial loans are also being considered by the state (S.B. 1235).

Online Notarization

Several states introduced bills in 2018 to permit remote online notarization to permit consumers to chose to conduct real estate finance transactions using remote online notarizations. The Mortgage Bankers Association (MBA) and the American Land Title Association (ALTA) have drafted model legislation to ensure that such online notarizations are “equivalent to traditional notarizations without any additional restrictions or unnecessary barriers.” States that have previously enacted laws to authorize online notarizations include Indiana, Montana, Nevada, Texas, and Vermont. Minnesota (Ch. 176) Enacts the “Revised Uniform Law on Notarial Acts” which allows: (1) a person to apply to be a remote online notary public; (2) electronic documents with electronic signatures to be used when the law requires paper documents that are signed; (3) a notary public to select the technology they choose to complete electronic notarial acts and to notify the state before notarizing electronic documents. [Effective January 1, 2019] Tennessee (Ch. 931) Enacts the “Online Notary Public Act” to provide standards for online notarization, for the use of electronic records, signatures and seals, and online notarization procedures. [Effective April 1, 2019] Enactments:

Student Loan Servicer Licensing

Bills to license student loan servicers are pending in Massachusetts , Massachusetts , New Jersey, New York , Ohio , and Rhode Island .

Enactments:

In Maine , the legislature passed a bill to require licensure which was subsequently vetoed by the Governor. In his veto message, the Governor noted stated, “Student loans are issued by educational loan servicers that are authorized to do so by the U.S. Department of Education pursuant to the provisions of the Federal Student Loan Program and other federal laws. States that have attempted to regulate activities of educational loan servicers at the state level are now having to defend themselves against federal preemption charges. I do not intend to sign a bill that will likely be the subject of federal litigation at great expense to the State of Maine.” Washington (Ch. 62) Requires the licensure of student loan servicers by the Department of Financial Institutions and sets standards and required servicing practices. [Effective January 1, 2019, or upon final adoption of rules by the DFI, whichever is sooner.]