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