Changes Caused by Electronic Liens and Titles

Participating in a Electronic Liens and Titles (ELT) program (offered by several states) changes the way titles are managed, but not in the way most people expect. The biggest example of this is the title application (application + old title + fee + whatever other forms required by the state). Most people on hearing that an electronic title program is in place assume that the electronic title can be applied for electronically, since logically a "going digital" program means eliminating paper. Sadly, this is not the case with *any* ELT programs so far (mostly*). Title applications must still be submitted with physical owner signatures or limited power of attorney forms.

What ELT Does Not Change

• Liens are still recorded as part of vehicle collateral for loans.
• The lien is still recorded by the DMV.
• Applications for liens are still required (as mentioned above) since physical signatures are required to meet Federal odometer disclosure laws.
• Forms and processes for related actions (owner address change, vehicle reposession, mobile home de-titling, etc.) remain the same.

What ELT Changes

• Lienholders do not receive a paper title.
• Liens must be released electronically (in many ELT states).
• Titles are mailed to owners by the DMV.

Non-Obvious Improvements
I can hear you thinking now: "What good is that? That doesn't help nearly enough!" We've heard that before. This subtle change to a paperless title makes a big difference in business processes, greatly helping lenders, states, and vehicle owners. Titles cannot be misfiled. Owners who misplaced lien-released-on-the-face titles can request duplicates from the DMV. No title mail to open, no titles to mail out.

Premier eTitleLien™ Extras
Our solution allowing lenders to work with state ELT programs helps make the most of these benefits and more. Title applications are tracked until lien is perfected. Information on new electronic titles (owner name, odometer) is checked against the application for accuracy. State title inquiry services are used along with NADA or Blackbook values to verify vehicle status prior to issuing a loan. There's more at http://www.etitlelien.com.

* Ohio does allow lenders to electronically notate a lien for an existing title when no transfer of ownership occurs. Yay Ohio!

Image from Dalit Freedom Network

No paperwork needed to release liens

One of our newer customers provides financing to dealers. (They specialize in it; the industry term is "floorplanning".) As we're going over the program (Premier eTitleLien) during a training session, they remarked "You mean we don't have to fill out any forms to release our lien!" They couldn't get over how much easier the ELT program made things for them.

We've been saying this for a long time. One reason we like our product so much: everybody benefits.

It's nice to hear the pleased surprise of a new customer.

Texas: Releasing an Electronic Title

Texas, being new to ELT, does not currently have a built in way to request a paper copy of a title with a lien. But there is a way. :)

Form VTR-302, Request to Convert an Electronic Title to a Paper Title, is for the exclusive use of an Electronic Lien and Title (ELT) program participant. Only an ELT certified lienholder or vendor may submit this form.

Premier eTitleLien will automate this process as it does the process to request a paper copy of a title in other states. For more information, please contact us at info@etitlelien.com.

Manual vs Electronic

One obvious question that comes up from anyone hearing about electronic liens and titles (ELT): "What is the difference between what we're doing now and ELT?"

Our simplest answer: "No More Paper Titles".

We like this answer because it is so key. It represents three major points: reducing time spent handling paper, reducing costs related to moving paper around, and reducing fraud through improved information exchanges.

ELT is a fundamental shift: you have to understand that for a lender, the real point is having the lien filed with the state. A paper title is simply proof of lien (and proof of ownership for the owner of course). If that proof becomes a certified electronic message from the DMV, then there is no longer any need to open, read, matchup, verify, scan, file, store, retrieve, mail, or request duplicate copies of a piece of paper.

At a prospective customer's request, we recently outlined some of these differences in a flowchart. I've had the flowchart posted to our website for you analytical folks out there. Have fun!