Tuesday, January 31, 2012

States Compelling Participation in ELT

A series of questions in which our writer attempts to answer simple-sounding questions without saying things like "Well, yes, they do have ELT but..." Let the reader understand that these are simplified answers. ;)

See the other posts in this short series: Electronic Title States, Upcoming Electronic Title States, States Compelling Participation in ELT (this post), and States Planning to Compel Participation in ELT.

Which states compel participation in their ELT program?

This is one of the most complicated questions to answer, and the wording for the question was chosen carefully to accurately include all the states above. We intentionally did not phrase the question "What are the Mandatory ELT states?" or even "Which states never print titles with liens?"

There are four basic methods that States are currently using to "compel" participation:

  • Mandatory ELT: by law lenders must participate in the program. This applies to PA, LA, CA, and AZ. Each state allows for certain exemptions, particularly for individuals listed as lienholders. Arizona required immediate participation and would not process lien applications without enrolling in the program. Pennsylvania (the first state to make ELT mandatory) used a gradual enforcement process. Louisiana, while always maintaining that ELT participation is required, is also gradually enforcing their law. California's law went into place in 1/1/2012 but the law allowed them to determine schedule and exemptions. At this point we are expecting them to implement the ELT participation mandate in September 2012 as Arizona did, requiring participation to even file a lien.
  • Phase out the paper title: Florida is the author and authority of this method which basically involves changing policies to make vehicle transactions easier without a paper title - the paper title just becomes obsolete. Florida is not on our list above because they do not require participation in ELT nor do they restrict the printing of paper titles. They do intend to require participation in the near future.
  • Fees for non-electronic processing: Wisconsin charges lenders fees for not participating. There is always an extra $5 processing fee for manual transactions. In addition, "if a financial institution is not exempt, it will be assessed a $20 surcharge for each application submitted to DMV for processing that can be completed electronically...."
  • No paper titles with liens: Nebraska and Kansas both leave it to the lender's preference about participating in their ELT programs, but do not print and mail titles with liens as part of their normal process.

If you are a lender and would like a greater explanation of these differences, please contact DDI. If you are a state or would like more technical details, you may also visit our AllAboutTitles.com site.

Monday, January 30, 2012

Upcoming Electronic Title States

A series of questions in which our writer attempts to answer simple-sounding questions without saying things like "Well, yes, they do have ELT but..." Let the reader understand that these are simplified answers. ;)

See the other posts in this short series: Electronic Title States, Upcoming Electronic Title States (this post), States Compelling Participation in ELT, and States Planning to Compel Participation in ELT.

Which states are actively working on an ELT program?

We expect both Iowa and South Dakota to implement their programs this year. DDI is working with both states as they implement their programs.

Which states have said they intend to develop an ELT program?

  • Alabama
  • Connecticut
  • Indiana
  • Mississippi
  • Tennessee
  • West Virginia

These states have all indicated to us (in person) that they have a goal to implement ELT. In most cases for these states, it is a matter of available resources to implement needed technical changes.

If you are a lender and would like a greater explanation of these differences, please contact DDI. If you are a state or would like more technical details, you may also visit our AllAboutTitles.com site.

Sunday, January 29, 2012

Electronic Title States

A series of questions in which our writer attempts to answer simple-sounding questions without saying things like "Well, yes, they do have ELT but..." Let the reader understand that these are simplified answers. ;)

See the other posts in this short series: Electronic Title States (this post), Upcoming Electronic Title States, States Compelling Participation in ELT, and States Planning to Compel Participation in ELT.

Which states currently have an Electronic Lien and Title (ELT) program?

Please note the following:

  • The Kansas Electronic Lien and Title program does not currently accommodate direct interaction with service providers like DDI.
  • In New York, the program is known as the Electronic Lien Transfer (ELT) Program, since there is no electronic title. Even with liens, owners retain titles in New York state.
  • The Utah E-Liens (Electronic Lien Transfers) program does not currently accommodate direct interaction with service providers like DDI.
  • The Wisconsin program does not currently meet our definition for a full ELT program, since as in New York, owners retain the paper title and the state does not electronically notify lenders when the lien has been recorded. However, they do require lenders to participate in their lien recording program, e-MV Agent. Wisconsin DOT expects to change to a full ELT program in the Summer of 2012. ("On July 1, 2012, Wisconsin will become an electronic title state.")

If you are a lender and would like a greater explanation of these differences, please contact DDI. If you are a state or would like more technical details, you may also visit our AllAboutTitles.com site.

Tuesday, January 24, 2012

Wisconsin Will Become an Electronic Title State

The Wisconsin DOT recently posted this update on their Financial Institutions page:

What's new for Wisconsin lenders
On July 1, 2012, Wisconsin will become an electronic title state. When a lien is listed against a vehicle, Wisconsin will not be issuing a paper title to the lender/financial institution or owner of the vehicle until the lien is satisfied.
WisDOT is currently developing methods for the delivery of titles electronically. Please check back within the coming months or sign up for our lender mailing list for continuing updates.

Wisconsin has required lenders to participate in their electronic process since July 1, 2010 or face additional fees. They have indicated to DDI that this is a step toward no longer printing titles with liens. Lienholders who process more than 48 liens in a year will be required to participate in the electronic delivery. All lienholders are eligible. DDI currently supports lenders filing and releasing liens in Wisconsin within Premier eTitleLien™. We're looking forward to these changes - it will simplify the process for lenders and reduce costs for the DOT.

Image above is Xanadu in Wisconsin Dells, WI.

Friday, January 20, 2012

California posts updates about mandatory ELT requirement

California has updated their website with details about the ELT program. Particularly, there have been questions about how the CA DMV will interpret the requirement for lienholders who must participate in ELT. From the page:

7 Q. When will the mandatory ELT requirement take effect?
A. We anticipate that the ELT program will begin mandatory participation in the Spring of 2012. DMV is currently accepting voluntary participation applications. All mandatory ELT participants must apply to be enrolled in the program between spring 2012 – December 31, 2012.

8 Q. Who is required to enroll in the mandatory ELT Program as a lender?
A. All licensed financial institutions that hold a security interest in a California titled vehicle are required to enroll in the mandatory ELT Program, excluding businesses licensed to engage in the sale of automobiles and/or vessels. Please note: there is no mandatory threshold of vehicles/vessels required for mandatory ELT participants.

10 Q. Do vehicle dealers need to be enrolled in the mandatory ELT Program?
A. No. However, dealers may become a voluntary participant.

11 Q. Can Financial Institutions (i.e., banks or credit unions) be exempt from the mandatory ELT Program if they finance only a few vehicles a year?
A. No. Financial Institutions are not exempt from participation in the mandatory ELT Program based on the number of vehicles financed in a given time period. If a lender offers the service of vehicle financing to customers, the lender must enroll in the mandatory ELT Program in order to be recorded as a lienholder on California title records.

12 Q. Are out–of–state lienholders required to participate in the mandatory ELT Program?
A. Out–of–state lienholders engaged in the business or practice of financing vehicles purchased by California residents, to be titled in California, must participate in the mandatory ELT Program. Out–of–state lienholders who finance vehicles to be titled only in other states by non–California residents are not required to participate. California will record existing lienholder information appearing on non–California titles when a new California resident applies to transfer a vehicle title. Those lienholders will be issued paper titles if they are not enrolled in the ELT program.

We are anticipating, based on the information above and from conversations with the DMV, that the final signup date for the program will be 9/11/2012 (not a joke). That means participants would be live on 12/31/2012. After that point, we expect that any non-participating lenders will be unable to place liens until their go live date. The published schedule for 2012 sign ups is:

Quarter Due date for applications Due date for contracts Implementation
1st December 13, 2011 December 27, 2011 March 30, 2012
2nd March 13, 2012 March 27, 2012 July 2, 2012
3rd June 12, 2012 June 26, 2012 October 1, 2012
4th September 11, 2012 September 25, 2012 December 31, 2012

Full instructions for signing up for the program are posted on our website at http://www.etitlelien.com/eltCA.aspx.

Image above is Spring Beginnings by Ellie T. Freudenstein from an exhibition at the California Art Club.

Thursday, January 19, 2012

Mandatory ELT Legislation Proposed in Florida

Florida has been making steady progress in simplifying and streamlining their processes related to vehicle titles. Florida already provides one of the best public title inquiry services for getting information about your vehicle. Recent bill introduced in the Florida Senate will allow the Florida Highway Safety and Motor Vehicle Administration to take their next steps forward with the ELT program, including requiring participation. From the bill text:
...requiring that the department establish and administer an electronic titling program that requires the recording of vehicle title information for new, transferred, and corrected certificates of title; requiring that lienholders electronically transmit liens and lien satisfactions to the department; providing exceptions; amending s. 328.16, F.S.; requiring that the department electronically transmit a lien to the first lienholder and notify such lienholder of any additional liens; requiring that subsequent lien satisfactions be electronically transmitted to the department; amending s. 328.30, F.S.; authorizing the department to issue an electronic certificate of title in lieu of printing a paper title; authorizing the department to collect electronic mail addresses and use electronic mail for the purpose of providing renewal notices in lieu of the United States Postal Service; amending s. 713.78, F.S.; conforming a cross-reference; providing effective dates.

Image above is titled "Old School" taken at the Tallahassee Automobile Museum by Jo Jakeman.

Wednesday, January 18, 2012

Customer Call

Last Friday we received a call from a customer who was away from her office but needed to release a lien for her customer ASAP. She was in a bit of a panic until I guided her through logging into Premier eTtileLien™ remotely. You can be away from your office and still provide service to your customers because Premier eTitleLien™ is a web based system. You can handle your business anytime of the day, regardless of your location. You only need access to the internet and have your login information.

- Charleen Smith