Policy decisions concerning the Electronic Lien Process are:
- At this time, all applications remain paper documents.
- If a paper title exists, it must be surrendered at the time of a supplemental lien application.
- No more data will be exchanged than is currently printed on the title.
- An electronic title with lien will remain electronic until it is printed.
- Once printed, it will remain a paper title, unless it is surrendered to again become an electronic title.
- DMV Headquarters provides a dedicated phone line for problem resolution by lienholders.
- No conversion of existing paper titles to electronic liens, or complete conversion of electronic titles to paper titles unless agreed to by all parties before any conversion.
DMV will transmit the following data elements to identify a vehicle owner and a vehicle:
- Vehicle identification number (VIN)
- Title number/Title Issue Date
- Vehicle year/make
- Owner’s name(s) and address
- Primary and secondary lienholder’s name and address
- Date of lien
- Lienholder ID.
The following applies to any other contracts with vendors, third-party service providers or service bureaus:
- DMV contracts with the lienholder and with an approved vendor or service bureau working for the lienholder.
- The lienholder can sign a contract with any vendor or service bureau which will support all or any part of the electronic lien process.
- Once the lienholder signs a contract with a vendor or service bureau, DMV will work with both the lienholder and the vendor or service bureau to implement the Electronic Lien Program.
- The lienholder assumes full responsibility for any actions taken by a vendor or service bureau working on its behalf.
When Sent:When a title transaction is processed at DMV, a record is established on the customer database, which includes information identifying the vehicle, the vehicle owner, and the lienholder. When DMV identifies the lienholder as an electronic lien program participant, it adds an electronic lien indicator (Title held: electronic lien). This tells DMV personnel that no paper title was produced.
Who Sends: DMV
How It Works: DMV extracts the minimum identifying information from DMV’s records and transmits it to the lienholder. The title will not print until the lienholder releases it (lien satisfied) or requests the title to be printed (print only). The lienholder electronically matches the message against its own customer records and notifies DMV if it cannot match a record to the information contained in the record.
When Sent: When the loan (lien on vehicle) has been paid off.
Who Sends: Lienholder
How It Works: When a lien satisfied message is received from the lienholder, DMV will electronically remove the name and address of the lienholder sending the message. DMV will then check for any other liens for that vehicle.
- No Other Lien: DMV will remove the electronic lien indicator and print the title. The title is mailed to the vehicle owner, either at the owner’s address of record or to the address indicated in a distributive mailing message, the next day.
- Additional Lien on Record: DMV will move the name and address of the lienholder with the oldest lien into the primary lienholder field. The electronic lien indicator will be removed and the title will be printed and mailed to the new primary lienholder if that lienholder is not a participant in the Electronic Lien Program.
When Sent: Whenever the lienholder needs the paper title. This can occur in instances of repossession, sale of paper, dealer pay-off, or other change in vehicle or lien ownership.
Who Sends: Lienholder
How It Works: The lienholder requests a print only transaction by flagging the appropriate record and including the correct code. This message is sent to DMV electronically.
DMV will remove the electronic lien indicator. The title is printed and mailed to the lienholder the next day.
Distributive Printing (Release of "title print held" condition)
When Sent: Whenever the lienholder has determined that a printed title is required within 24 hours. This can occur in instances of repossession, sale of paper, dealer pay-off, or other change in vehicle or lien ownership. The title can be printed either with the lien interest released (satisfied) or with the lien intact, as requested by the lienholder.
Who Sends: Lienholder (to the "Emergency" folder)
How It Works: The lienholder requests that the "title print held" condition be removed and indicates whether or not the lien interest is to be released, and to which of DMV’s Customer Service Centers(CSC) the designated representative of the lienholder, an insurance company, another financial institution, or a dealership, or the customer will go to pick up the printed title (the representative or the customer must have appropriate identification). DMV will release the electronic lien indicator and the "title print held" condition, which will allow the CSC to print the title. The designated CSC will be notified, by DMV prior to the close of the business day, of the name of the entity from which a representative will come to pick up the paper title. The designated CSC will print the title for the representative upon presentation of proper identification and a letter from that entity identifying the representative as authorized to receive the printed title. These messages are to be sent to DMV’s "Emergency" folder, ONLY.
When Sent: Whenever the lienholder has determined that the title must be mailed to the owner in care of either a dealership, insurance company, or another financial institution. This can occur in instances of dealer pay-off, insurance company pay-off, refinancing by another financial institution, or sale of paper to another financial institution. This message includes a release of lien interest (lien satisfaction).
Who Sends: Lienholder
How It Works: The lienholder requests a release of lien interest, including a distributive mailing request, indicating the name and address to which the title is to be mailed. DMV will remove the electronic lien indicator, satisfy the lien, print the title, and mail it to the customer, in care of the specified name and address. These titles will be mailed within one business day.
When Sent: Whenever a message is transmitted that cannot be identified or matched to a record, or when DMV transmitted information incorrectly.
Who Sends: DMV and lienholders
How It Works: Either DMV or the lienholder should send an error message if it discovers:
- Data transmitted by mistake that should not have been sent;
- Data that should have been sent, but contained errors;
- Problems with its programs transmitting the data.
Most errors transmitted are resolved electronically. However, the DMV and the lienholder are responsible for researching and correcting such problems.
Lien Satisfied and Print Title Verifications
When Sent: Whenever a lienholder has notified DMV that a lien has been satisfied or requests a title to be printed.
Who Sends: DMV
How It Works: Once the title has been printed, DMV will generate a verification message which contains information identifying the vehicle. This message will be sent back to the requesting lienholder as confirmation that the title was printed. The vehicle record will be updated to indicate that the title has been released.
Print Only Transaction
When Sent: Lienholders should use this transaction when they need the title document in order to:
- Add an owner to the title
- Change the lienholder
- Handle a routine, non-emergency dealer payoff or
- Repossess a vehicle
- Transfer ownership of the vehicle
Who Sends: Lienholder
How It Works: The lienholder requests the title to be printed, without releasing their interest in the lien. DMV changes the electronic lien indicator, removes the "title print held" condition and prints the title overnight, mailing it to the lienholder the next day.