Tuesday, August 17, 2010

Alert: Nebraska Will Stop Printing Titles With Liens on Oct 4

We've received an update from the Nebraska DMV on their timetable for implementing their Electronic Lien and Title (ELT) program. The single-lender pilot is scheduled to begin October 4, 2010 and will run for two weeks. Other participants will be able to go live at the conclusion of that pilot. DDI customers can expect to begin receiving electronic titles from Nebraska beginning October 18, 2010.

One point of clarification that was not obvious until now is that once the pilot program begins, the state will cease printing paper titles with liens for all lenders. We expect that requests for printed titles with liens that meet the state criteria will be allowed, but the normal process of mailing titles to lienholders at the recordation of their lien will cease.

The Nebraska DMV will stop printing titles with liens as of October 4, 2010.

These dates are subject to change pending the progress toward the initial pilot and resolution required to address any issues that arise during the pilot program.

Just to be clear: After following the DMV process to note a lien, including filing an Application for Certificate of Title, supporting documents, and fee with a Nebraska county Motor Vehicle Office, the Nebraska DMV will *not* send a paper title to the lender. There is no provision for exceptions based on the type of vehicle (in other words mobile homes are not excepted) or the type of lienholder (bank, finance company, individual, bail-bondsman). Currently, the date for that change in process is October 4, 2010.

Other helpful posts about the Nebraska Electronic Lien and Title program:

Image from DTCC's No More Paper Campaign.

Monday, August 16, 2010

On Being an ELT Service Provider

Fairly regularly we get folks asking about how to become an ELT service provider. This happens especially when a state begins requiring participation in their ELT program. States are not generally interested in certifying every lienholder, so they require lenders and other lienholders to work with a third party that does get certified by each state's DMV. That is what we do: allow lienholders to participate in ELT.

Becoming an ELT service provider is not magic, it's just a lot of work. When we hear of individual lenders wanting to become their own provider, we wish them all the best. In reality, there is no way for even a large company to recover on-going maintenance costs to work with each state, much less the initial development (and material costs and state fees) to become certified.

And that gets us to why we like being an ELT Service Provider. We feel that we can offer a winning solution for everyone.

  • We work with each state's ELT program, maintaining compliance.
  • And on top of that, we keep a relationship with the staff at the DMV enabling us to get answers to questions.
  • We save our customers frustration by providing specific answers or advice.
  • We provide tools that help to reduce fraud.
  • We make the most of the benefits offered by each state's ELT program to make title processing easier.
  • And we add our own innovations to further improve tracking titles, preparing paperwork, resolving issues, and generally making titles as collateral work the way our customers need them to.
  • Owners benefit too both in the reduction of fraud and the simplification of paperwork.
  • Plus, ELT is a very green initiative!
We love helping our customers, and we think we offer a great product and great service at an unbeatable price. It is very gratifying to be in a business where everyone benefits.

The image is from a podcast series by Business Week. The sentiment "Making Innovation Work" really sums up our efforts with ELT.

Friday, August 13, 2010

Are you ready for ELT in Nebraska?

In our press release yesterday, DDI's president Glenn Thames is quoted saying

Nebraska lenders have chosen DDI’s Premier eTitleLien™ because it provides the most cost-effective solution for streamlining their titling processes.
We are pleased that a number of Nebraska lenders have already signed up to participate in Nebraska's ELT program. Some of our Nebraska customers are already receiving electronic titles through their participation in other states like Arizona.

The Nebraska program begins this fall and becomes almost-mandatory in January when the NE DMV stops printing title certificates with liens. Almost-mandatory?

With Nebraska’s ELT program beginning January 1, 2011, vehicle paper titles with liens will no longer be printed and the ELT program provides the sole method for lienholders to obtain electronic titles.

Reference: Nebraska: Is New Electronic Liens and Titles Mandatory?

Photo is of the Eagle Fruit Store and Capital Hotel, Lincoln, Nebraska, c 1942.

Thursday, August 12, 2010

Heading to Iowa: Helping a New ELT State

The Iowa DOT Motor Vehicle Division has invited us to discuss their upcoming ELT program scheduled to be implemented in 2011. From Iowa Senate File 2273:

It is the intent of the general assembly to establish a uniform statewide system to allow electronic transactions for the initial registration and titling of motor vehicles, including electronic applications, electronic issuance of titles, electronic registration, electronic transfer of funds, electronic perfection of liens, and issuance of secure and individually identifiable temporary registration cards, by January 1, 2012.

As we did with Nebraska, on Monday, August 16th DDI's CIO Ann Gunning will make a presentation to the MVD about what we offer as an ELT service provider and our ELT solution, Premier eTitleLien&trade. We want to encourage the MVD to consider the input of Iowa lenders and dealers. We'll also share some of the best things about the way ELT has been implemented in other states.

Our expectation is that Iowa will complete their study of the electronic title and registration features by the end of 2010, including a plan for implementation in 2011.

Reference: Senate File 2273 at the Iowa Legislature site and our mirror.

Photo above is of an Iowa Interstate (IAIS) engine by Tom McNair.

Wednesday, August 11, 2010

Changes to the South Carolina Title Application

In Premier eTitleLien™ we support the generation of title application forms for our ELT states and keep them up to date with changes implemented by the state. South Carolina recently changed their Title Application form (SC Form 400) as follows:

  1. Section numbers have been replaced with section letters so as not to confuse requirements listing with the numbers at the top of the form.
  2. Applicants may indicate whether the transaction should be expedited at the top of the form.
  3. Expedited applications can be requested if the transaction needs to be completed within three (3) business days. This is not required for expedited electronic Release or Request Paper Title transactions.
  4. The Primary Owner’s address was added before RESIDENCE STREET ADDRESS.
  5. In the lien holder’s address section, indicate if the lien holder is a ELT lien holder by checking the appropriate checkbox beside the lien information. This is automatically checked for Form 400s printed through Premier eTitleLien™.
  6. If there is no lien on the vehicle, enter None in the lien section.
  7. The lien release has been eliminated from the back of the form. Financial institutions must submit the lien release on company letterhead with the vehicle’s description, or use Form 450, Satisfaction of Lien.
  8. Owners must certify by signature for the Sales Tax Exemption in Section G;
  9. Owners must certify the sales prices by initialing Section I; and
  10. The Federal Motor Carrier Services acknowledgement statement has been added to the signature line statement (Section L).

Image is a Lexus SC430 from "Ever Seen a Carolina Herrera SC430? Wow!!!"

Friday, August 6, 2010

Common Questions about the Nebraska ELT Program

Are all lenders required to participate?

No. But you probably want to since lienholders who participate will receive an electronic title through their ELT Service Provider. See this post for more information.

What will change beginning January 1?

The Nebraska DMV will no longer print titles with liens. From the Nebraska Electronic Lender Guide:

Upon implementation, Nebraska certificates of title that contain lien information will be stored electronically. No printed copy will be produced for mailing to the lender unless specifically requested.
Upon issuance of the certificate of title with the lien noted, the certificate of title is stored electronically on VTR. No printed copy will be produced for mailing to the lender.

The Electronic Lender Guide says "No printed copy will be produced for mailing to the lender unless specifically requested." Can I just specifically request to have all my titles printed?

No. The guide states:

An electronic certificate of title may be printed, at the request of a lender, if the owner is relocating to another state or for other purposes as approved by the DMV.
The DMV also states in their Provider Questions and Answers:
Question: Are the following purposes approved by the DMV for a paper title request:
a. State Change (owner moving to another state)
b. Name Change (as in the case of marriage)
c. Request for a Correction of Information on the Title
d. Legal Reasons
Are there any other approved purposes?

Answer: Items a, b and d are the only approved purposes at this time.

Can I apply for a lien electronically?

No. The application process will remain the same, with all parts of the application (form, fee, supporting documentation) required. From the Nebraska Electronic Lender Guide:

Certificate of title and lien applications will continue to be filed at title issuing offices [local county treasurer office or the DMV, Division of Motor Carrier Services (MCS) for any common, contract or private carrier of property by motor vehicles in interstate commerce].

Is the Nebraska Application for Certificate of Title still required?

Yes, the NE Title Application is still required for lenders applying for a lien. See "Can I apply for a lien electronically?" above.

Image entitled "Everywhere Questions"

Tuesday, August 3, 2010

Nebraska: Is New Electronic Liens and Titles Mandatory?

Are lenders required to sign up for ELT in Nebraska?

No. But you probably want to.

From the Nebraska Electronic Lender Guide:

Lender participation in this program is, at present, optional. However, upon implementation, Nebraska certificates of title that contain lien information will be stored electronically. No printed copy will be produced for mailing to the lender unless specifically requested.

Certificate of title and lien applications will continue to be filed at title issuing offices [local county treasurer office or the DMV, Division of Motor Carrier Services (MCS) for any common, contract or private carrier of property by motor vehicles in interstate commerce]. Upon the notation of a lien, the certificate of title record will be stored electronically on the DMV Vehicle Title and Registration (VTR) database and a participating lender will be electronically notified of the title issuance/lien notation.

At the time of lien satisfaction, a participating lender will electronically notify the DMV of the lien release and the DMV will print and mail the certificate of title to the owner (or other entity as directed by the lender).
To be clear: Lienholders will no longer receive a paper title or any other notification from the DMV when their lien has been recorded. The state "notifies" through the Electronic Lien and Title program.

What changes if a lender does not sign up?

  • The lender will not receive a paper title with their lien.
  • Lien releases will be handled through a new form (the Non-Participating Lender Lien Release application) that must be submitted to a title issuing office.

What about non-lender situations, such as bail bond companies or a mechanic's lien?

We inquired with the Nebraska DMV about non-traditional lienholders. At this time there are no exceptions for printing titles with liens.

What incentives are there for participating?

  • Primo: Lienholders will receive notification that your lien has been recorded. This notification contains the information that normally appears on a title, allowing you to verify that the lien was recorded correctly. (Premier eTitleLien™ makes this very easy.)
  • The DMV will assume responsibility for printing a clear title and mailing it to the owner at lien release. That eliminates situations where owners who have lost a title must come to you to request a duplicate.
  • Lienholders who participate in the ELT program will release liens electronically. The state will not accept a paper lien release which helps protect the lienholder against fraud.

Book cover from "No Code Required: Giving Users Tools to Transform the Web" - an interesting book that parallels our goal for lenders: No More Paper Titles: Giving Users Tools to Transform Liens and Titles

Monday, August 2, 2010

Nebraska: ELT Progress Update

Nebraska DMV published updates to the ELT program scheduled for full implementation by January 1, 2011. The updates include some minor changes to the Nebraska Electronic Lender Guide and the ELT Lender Application as well as some updates to the provider questions that are mostly technical in nature.

The DMV also provided us an updated timetable. They are scheduled to begin testing with a single pilot lender on October 4th and expect that testing period to run for four weeks, at which point any other providers and lenders may begin exchanging electronic title information with the DMV.

DDI is currently accepting applications to participate in the Nebraska ELT program. Our goal is to have any lenders concerned about the changes to titles with liens to be ready by the January 1 implementation when Nebraska DMV begins issuing all titles with liens electronically. As of 1/1/2011, the NE DMV will no longer print titles with liens. There is no cost to join the state ELT program and a large number of benefits for lenders.

Image from WeddingCars.sg