Notary Challenges Out of State Out of Country

Notary Challenges: Out of State, Out of Country, & Online Sean Holland Regional Underwriting Counsel First American Title Insurance Company, and its affiliates, make no express or implied warranty respecting the information presented and assume no responsibility for errors or omissions. First American, the eagle logo, and First American Title are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates. The following presentation is for informational purposes only and is not and may not be construed as legal advice. No third party entity may rely upon anything contained herein when making legal and/or other determinations regarding its practices, and such third party should consult with an attorney prior to embarking upon any specific course of action. © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Overview Notarizing Documents • • Policy Liability Alaska Law – Basic Principles Other States Federal – Consular – Military • Foreign • Remote Online Notarization © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Why does proper notarization matter? Policy Coverage Covered Risk #2 – 2006 ALTA Owner’s and Loan policies: 2. Any defect in or lien or encumbrance on the Title. This Covered Risk includes but is not limited to insurance against loss from (a) A defect in the Title caused by (i) forgery, . . . incompetency, incapacity, or impersonation; . . . (iii) a document affecting Title not properly. . . executed, . . . acknowledged, [or] notarized[. ] © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Why does proper notarization matter? Policy Coverage Covered Risk #9 – 2006 ALTA Loan policy: 9. The invalidity or unenforceability of the lien of the Insured Mortgage upon the Title. This Covered Risk includes but is not limited to insurance against loss from any of the following impairing the lien of the Insured Mortgage (a) forgery, . . . incompetency, incapacity, or impersonation; . . . (c) the Insured Mortgage not being properly. . . executed, . . . acknowledged, [or] notarized[. ] © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Why does proper notarization matter? Policy Coverage Covered Risk #6 – 2013 Homeowner’s policy: 6. Your Title is defective. Some of these defects are: . . . c. A document upon which Your Title is based is invalid because it was not properly signed [or] acknowledged[. ] © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Basic Principles – Overview • • Statutes Acknowledgment Certification Acknowledgment required for conveyances © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Basic Principles – Statutes #1 Title 44 – State Government • Chapter 50 – Notaries Public Regulation of notaries • Licensing • Seals • Bonds • Etc. © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Basic Principles – Statutes #2 Title 9 – Code of Civil Procedure • Chapter 63 – Oath, Acknowledgment, and other proof – Article 1: Oaths, Certifications, Notarizations and Verifications Title 34 – Property • Chapter 15 – Conveyances – Article 2: Acknowledgment and Proof © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Basic Principles – Acknowledgment AS 09. 63. 090 The words “acknowledged before me” mean that (1) the person acknowledging (A) appeared before the person taking the acknowledgment; (B) acknowledged that the person executed the instrument; © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Basic Principles – Acknowledgment AS 09. 63. 090 (continued) (C) in the case of (i) a natural person, acknowledged that the person executed the instrument for the purposes stated in it; . . . (2) the person taking the acknowledgment either knew or had satisfactory evidence that the person acknowledging is the person named in the instrument or certificate. © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Basic Principles – Acknowledgment Elements • Personal appearance • Execution/signature acknowledged • For purpose of instrument • Signer is known or presented satisfactory evidence © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Basic Principles – Certification AS 09. 63. 070 The person taking the acknowledgment shall certify that: (1) the person acknowledging appeared before the person taking the acknowledgment and acknowledged that the person executed the instrument; and (2) the person acknowledging was known to the person taking the acknowledgment or the person taking the acknowledgment had satisfactory evidence that the person acknowledging was the person described in and who executed the instrument. © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Basic Principles – Certification In other words, the notary certifies: • Personal appearance • Acknowledgment of execution (signing) • Identification – Known to notary – OR – Satisfactory evidence © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Basic Principles – Conveyances in Alaska AS 34. 150 (a) A conveyance executed in the state of land or an interest in land in the state shall be acknowledged before a person authorized to take acknowledgments in AS 09. 63. 010[. ] © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Basic Principles – Conveyances elsewhere in the United States AS 34. 15. 160 If a conveyance is executed in a state, territory, or district of the United States, the conveyance may be executed according to the laws of that state, territory, or district, and the execution of the conveyance may be acknowledged under AS 09. 63. 050 - 09. 63. 130. © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

1 6 Acknowledgments and Notaries: Early American Practice Acknowledgments & Deed Recording Acts Plymouth Code of 1636 “…that all sales exchanges giftes morgages leases or other Conveyances of howses & landes the sale to be acknowledged before the Governor or any one of the Assistants & committed to publick Record and the fees to be payd. " © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF

Notary History - #1 First Person Appointed a Notary in America Thomas Fugill New Haven Colony 1637 © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Notary History - #2 First American Notary Removed from Office for Misconduct Thomas Fugill New Haven Colony 1645 © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Basic Principles – Conveyances in a Foreign Country AS 34. 15. 180 If a conveyance is executed in a foreign country it may be executed according to the laws of that country and the execution of it acknowledged under AS 09. 63. 050 - 09. 63. 130. © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Outside Alaska AS 09. 63. 050 Notarial acts may be performed outside the state for use in the state with the same effect as if performed by a notary public of the state by (1) a notary public authorized to perform notarial acts in the place in which the act is performed; (2) a justice, judge, magistrate, clerk, or deputy clerk of a court of record in the place in which the notarial act is performed; © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Outside Alaska AS 09. 63. 050 (continued) (3) an officer of the foreign service of the United States, a consular agent, or a person authorized by regulation of the United States Department of State to perform notarial acts in the place in which the act is performed; © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Outside Alaska AS 09. 63. 050 (continued) (4) a commissioned officer in active service with the armed forces of the United States or a person authorized by regulation of the armed forces to perform notarial acts if the notarial act is performed for a merchant seaman of the United States, a member of the armed forces of the United States, a person serving with or accompanying the armed forces of the United States, or their dependents; or (5) a person authorized to perform notarial acts in the place in which the act is performed. © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Outside Alaska AS 09. 63. 050 1. Notaries of other states 2. Judicial officials of other states 3. US consular officials 4. Commissioned officers in the military 5. Outside U. S. – persons authorized to notarize documents under local law © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Outside Alaska – Other states How do you know if someone is a licensed notary public in another state? You can take their word (or stamp) for it, or you can verify. © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Outside Alaska – Other states Little consistency in who regulates notaries; California – Secretary of State Florida – Department of State, Division of Corporations New York – Department of State, Division of Licensing Services Oregon – Secretary of State Washington – Department of Licensing © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Outside Alaska – Other states Just Google: verify [state] notary license Example: © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

2 7 Outside Alaska – Judicial officers “justice, judge, magistrate, clerk, or deputy clerk of a court of record in the place in which the notarial act is performed” Why would you want to? • No central registration as with notaries • What qualifies as a court of record in the state in question? © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF

2 8 Outside Alaska – Overseas Consular officers • At American embassies or consulates • Best option for getting documents notarized overseas from standpoint of security • No requirement that signers be U. S. citizens or residents • May not be workable in terms of timing © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF

2 9 Consular Signings – the challenge Your transaction is all set to close, you have documents ready to sign, and then you find out. . . the buyers are off travelling around England. © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF

3 0 Consular Signings – the challenge © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF

3 1 Consular signings – the challenge © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF

Military signings Who can do it? • commissioned officer in active service with the armed forces of the United States • person authorized by regulation of the armed forces to perform notarial acts Whose signatures can be notarized? • merchant seaman of the United States • member of the armed forces of the United States • person serving with or accompanying the armed forces of the United States • their dependents © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Outside U. S. – foreign law “a person authorized to perform notarial acts in the place in which the act is performed” Preliminary question: Will the lender involved in the transaction accept a document notarized outside the United States under authority of foreign law? © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Outside U. S. – foreign law Verifying whether you can rely upon notarization by a a person located in a foreign country is a two step process. • Figuring out who can notarize documents in that country • Confirming that the notary proffered is a legitimate notary Options: • Sleuth it out on your own (Wikipedia, Google, etc. ) • Rely upon accepted verification - apostille © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Outside U. S. – foreign law How comfortable are you with being responsible to verify a specific notary in a particular country?

Outside U. S. – foreign law #1 Don’t limit your search to official sources. Google the notary’s name. “Jose Luis Reyes Vazquez” © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Outside U. S. – foreign law #1 © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

3 8 Outside U. S. – foreign law #2 © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF

3 9 Outside U. S. – foreign law #2 © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF

Outside U. S. – Apostille A What the heck is an apostille? Or, as Wikipedia says: Not to be confused with Apostle (messenger, esp. Christian); or an apostil, meaning a marginal note or gloss.

Outside U. S. – Apostille B The apostille itself is a stamp or printed form consisting of 10 numbered standard fields. On the top is the text APOSTILLE, under which the text Convention de La Haye du 5 octobre 1961 (French for Hague Convention of 5 October 1961) is placed. This title must be written in French for the Apostille to be valid (article 4 of the Convention). In the numbered fields the following information is added (may be in official language of the authority which issues it or in a second language): . . . From Wikipedia – Apostille Convention

Outside U. S. – Apostille C 1. Country. . . [e. g. Hong Kong, China] This public document 2. has been signed by [e. g. Henry Cho] 3. acting in the capacity of [e. g. Notary Public] 4. bears the seal/stamp of [e. g. High Court of Hong Kong] Certified 5. at [e. g. Hong Kong] 6. the. . . [e. g. 16 April 2014] 7. by. . . [e. g. the governor of the special administrative district of Hong Kong, China] 8. No. . . [e. g. 2536218517] 9. Seal/stamp. . . {of the authority giving the apostille} 10. Signature

Outside U. S. – Apostille Norway Certifying Authority: Governor of County of Hordaland Fylkesmannen Hordaland D

Outside U. S. – Apostille E HCCH – Hague Conference on Private International Law

Outside U. S. – Apostille F Some countries where available: Some countries where not available: • Australia • European Union – all countries, even the United Kingdom • Japan • Mexico • Canada • China (except Hong Kong & Macao) • South Korea • Philippines

Remote Online Notarization Historical Model Precondition – e. Closing capability Legal Framework National Trends Competing Models RON’s Future in Alaska © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

4 7 Historical Model • • Paper conveyance documents Physically signed by grantors Personally appearing before notary Originals manually delivered to recording official for recording © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF

4 8 What are the elements of e. Closing? Electronic Documents Electronic Signatures Electronic Notarization Electronic Recording © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF

4 9 What are the elements of e. Closing? Electronic Documents A “native digital” document. NOT a scanned-in image of a paper document. Electronic Signatures A sound, symbol, or process applied by the signer to an electronic document in place of a wet-ink signature. Most common versions are holographic (aka hand-drawn), cursive typeface, and standard typeface. © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF

5 0 What are the elements of e. Closing? Electronic Notarization The process of applying the notary’s electronic signature and notarial stamp/seal to an electronic document. Electronic Recording The process of recording the electronic document in the count records in digital form. © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF

5 1 Types of e. Closing? • Three basic types along a continuum • Each method incorporates varying amounts of four elements Hybrid In-Person Remote Online Only “procedural” documents are electronic All documents are electronic Paper deed/mortgage are wet-signed Documents are e-signed in personal presence of notary on laptop or tablet Documents are e-signed in a remote online session Traditional identity verification by notary © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF Identity verification by notary accomplished through new, technologyassisted methods

5 2 What is necessary to e. Close? FOLLOW THE ROADMAP To complete a “true” online, remote e. Closing, we must have legality, capability, and willingness to use and accept each of the following: – Electronic Documents – Electronic Signatures – Electronic Notarization – Electronic Recording © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF

5 3 Legality, Capability, and Willingness Yes. In other words, we must answer three questions: 1. Legality – Is the use of electronic documents, signatures, notarizations (in-person and remote), and recording legal? 2. Capability – Is the recording official capable of accepting electronic documents with electronic signatures and notarizations for electronic recording? 3. Willingness – Is the recording official willing to accept electronic documents with electronic signatures and notarizations for electronic recording? © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF

5 4 As to Willingness. . . © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF

5 5 As to Willingness. . . © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF

5 6 Major Laws Addressing e. Notary 1999 – UETA (“transactions”; other exclusions) 2000 – Fed. ESIGN (foreign/interstate commerce) 2005 – URPERA (e. Recordings) 2010 – RULONA (e. Notary) 2017 – MBA-ALTA Model Act (remote notary) 2018 – RULONA Amendments (remote notary) © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF

5 7 Legality of e. Notarization • e. Notarization is recognized in most states and in most circumstances: – ESIGN (federal); UETA (47 states); URPERA (31 states) • BUT legal recognition ≠ authorization for state’s notaries • AND e. Notarization ≠ remote online notarization – Electronic: in-person electronic notarization – Remote Online: notarization conducted over the internet (this is necessary for remote online e. Closing) © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF

5 8 e. Notarization States © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF

5 9 Legality of Remote Online Notarization • Explicitly authorized in 9 states: – – Virginia (2011) – Broad approach Montana (2015) – Restrictive approach Texas and Nevada (passed 2017) Indiana, Tennessee, Minnesota, Vermont*, Michigan (passed 2018) • Explicitly rejected in some states: IA, UT, WV • Exploratory: CA, CO, DC, FL, KY, LA, MD, MO, OH, OK, PA, SD… • MBA-ALTA Model Legislation (2017) • ULC proposed RULONA (2018) © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF

6 0 RON States as of July 2018 © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF

2018 RULONA Status © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Montana Starting October 1, 2015 – Remote notarization authorized via realtime, two-way audio-video communication – web cam • Identification: signer personally known to notary, or identified by credible witness – Documentary evidence to identify signer is NOT OK • Location of notary - Montana • Signer is legal resident of Montana (except proxy marriage) • Transaction type (only four authorized) – Real property located in Montana Because of location limitation, not likely to encounter © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Virginia • Since 2011 • Electronic notarization vs. Remote notarization • Permits Virginia notaries to perform notarial acts via live-feed videoconference • No requirement that signer be in Virginia • No requirement that notary be in Virginia • No requirement that seal disclose remote notarization process used © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Virginia Code of Virginia § 47. 1 -13 Jurisdiction; powers outside the Commonwealth. . . B. Any notary commissioned pursuant to this title may likewise perform notarial acts outside the Commonwealth, where such notarial acts are performed in accordance with this chapter. . D. An electronic notarial act performed in accordance with this chapter shall be deemed to have been performed within the Commonwealth and is governed by Virginia law. © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Notarial Act “Shall be Deemed” to Have Been Performed in Virginia? © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Texas • Enacted 2017, effective July 1, 2018 • Notary physically present in Texas • Identity established by both credential analysis and identity proofing • Audio/visual record covering both establishing identity and acknowledgment • Notary seal indicates that remote notary procedure used © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Texas Features form basis for Model Bill Mortgage Bankers Association American Land Title Association © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

6 8 2018 RULONA Amendment Revised Uniform Law on Notarial Acts Amendment adopted in October 2018: “The 2018 Amendment to RULONA authorizes notaries public to perform notarial acts in the state in which they are commissioned for remotely located individuals using audio-visual communication technology regardless of where the individual may be located. . . This amendment was prepared in response to a rapidly emerging trend among the states to authorize the performance of notarial acts by means of audio-visual technology. ” © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF

6 9 Key Principles from NASS Standards, MBA-ALTA Model & RULONA (2018) • Technology Neutrality as to means of e. Notarization and authentication processes • Mandatory Disclosure in the notarial certificate • Multifactor Authentication to identify signer • Robust Audit Trail including audio-video recording • Notary Located in State at time of notarial act; overseas signer rule © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF

7 0 Multifactor Authentication in MBA-ALTA Model Legislation 1) Remote Presentation of ID credential 2) Credential Analysis of ID credential 3) Identity Proofing of individual © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF

7 1 Multifactor Authentication in RULONA (2018) “… at least two different types of Identity Proofing processes or services. ” © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF

7 2 Title Concerns Associated with RON • Three primary concerns: 1. Intrastate validity 2. Interstate recognition 3. Fraud, undue influence, and capacity of signer • Associated risks: - Document may not give constructive notice Document may not get evidentiary presumptions Document may be set aside Bankruptcy: Trustee “strong arms” mortgage Foreclosure: Borrower may challenge mortgage © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF

7 3 Interstate Recognition • State notarial reciprocity statutes? – Nearly all states accept documents notarized by notaries “in” other states, but where did something happen when it happened online? – The idea of “personal appearance” via a “remote appearance” overturns centuries of legal and commercial tradition • Full Faith and Credit clause of the US Constitution? – No known case holds that states must recognize notarial acts – Limits and “the land taboo” – Interstate Recognition of Notarizations (IRON) Act of 2010 (vetoed) • Dormant Commerce clause? – Prohibits economic protectionism by states, but permits legitimate local purposes that cannot be served by other means • Preserving integrity of public records seems like a legitimate local purpose • Otherwise innocuous state laws, but for the invention of new technology © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF

7 4 Interstate Recognition (cont. ) • Why not just have express recognition for everything? – Internet does not recognize state borders – Enormous economic incentive for tech companies to “disintermediate and consolidate” nationwide notary business into one centralized location – States likely to compete to be host of that centralized business – “the Delaware of notaries” – Significant portion of tech companies’ cost of doing business is authentication requirements – Reducing authentication requirements leads to increased fraud risk Race to the Bottom © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF

Alaska – what is needed • Statutory authorization for remote notarization, electronic notarization, and electronic signatures • Multi-factor identification: credential analysis and identity proofing • Audio/visual recording • Notary physically present in Washington • Notary seal indicates use of remote procedures © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Alaska – way ahead • Alaska Land Title Association draft bill – Incorporating MBA-ALTA Model (similar to 2018 RULONA Amendment, but more comprehensive) – Enacting URPERA – Uniform Real Property Electronic Recording Act © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

RON Trend Currently 10 states have enacted IN, MI, MN, MT, NV, OH, TN, TX, VA and VT 27 states likely to see bills in 2019 or 2020 AK, AL, AZ, CA, CO, FL, GA, HI, IA, ID, IL, KS, KY, LA, MO, MS, ND, NE, NJ, OK, OR, PA, SC, SD, UT, WA and WI © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

What you can do © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

7 9 Questions? Sean Holland Regional Underwriting Counsel First American Title Insurance Company sholland@firstam. com © 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF © 2018 First American Financial Corporation and/or its affiliates. All rights reserved. �NYSE: FAF