Thursday, January 7, 2010

Questions about ELT in Louisiana

DDI participated in a informational conference call with Auto Title Express (our tag agent in Louisiana). Around 80 individual members of the Louisiana Banker's Association "attended" the call and asked a number of questions.

How will ELT change what we do today?
The primary change is that you will no longer receive a paper title. (There is a long list of reasons why this is good.) The forms you use today and the documentation required for the forms do not change. Applying for a lien is the same process (title application with owner signature, supporting documents, and fee).

How do I release an ELT lien?
PTAs cannot release an ELT lien based on a paper request by a lender (or email, fax, etc.). Liens must be released electronically by the lender.

How long will it take the OMV to print a title when a "release" is issued?
Typically, titles will be printed and mailed the next day. Delays may occur during DMV audits and other situations.

Is there any way to get a printed title faster?
No. The OMV does not allow PTAs to print single titles and they do not have an alternate method of making titles immediately available. We believe that fast print is essential to the whole process and will be working with the Louisiana Banker's Association, Automobile Dealer's Association, and Senator Duplessis to propose and pass legislation enabling a fast print solution.

What is required (technology-wise) for a lender to participate?
The PTA (such as Auto Title Express) or Service Provider (such as DDI) will provide all necessary software. (DDI's solution is Premier eTitleLien™, a web-based application that does not require any special installation.) The software should handle secure message exchange and allow for releasing liens and requesting paper copies of titles with liens in place.

What do I do for situations that require paper titles, like floorplan financing, audits, or repossessions?
DDI's experience in other states is that auditors, finance companies, and insurance companies are pleased with the ELT program and accept printed reports authenticating the validity of the lien on the electronic title. In cases where this is not acceptable, a printed copy of the title can be requested.

Image: "Magnolia" (Louisiana State Flower) by Emily Brodnax