PHILADELPHIA (7/17/13)--VINtek, a provider of automotive collateral management, electronic lien and title (ELT) services and direct finance processing, assisted with the passage of Nevada's ELT legislation signed into law by Gov. Brian Sandoval.
ELT replaces paper automotive liens with an electronic exchange of data between the department of motor vehicles (DMV) and automotive lenders. Assembly Bill 309, signed into law in Nevada on June 11, is the first ELT legislation in the country to outsource the building and maintenance of a cloud-based electronic lien system in a public-private collaboration.
"Nevada has chosen to implement ELT in the most innovative, efficient way possible," said Larry Highbloom, VINtek president. "The DMV and lienholders in Nevada will soon experience the cost savings and process improvements afforded by removing paper from the titling process. We are seeing a growing national trend in outsourcing of legacy state-agency operations."
After selection in a request-for-proposal process, the chosen supplier, or suppliers, will build and maintain Nevada's internet-based ELT program, which will be paid for by sharing a portion of the savings lenders and consumers will realize from the paperless process. The legislation requires the reimbursement of any initial direct launch costs incurred by the DMV and ongoing DMV ELT program operating costs. Although deadlines have not been set for compliance with the legislation, it is expected that all but the smallest of automotive lenders will ultimately be required to participate in the program, said VINtek.
The Nevada DMV and participating lienholders will see reduced costs through the elimination of paper, less postage and storage, and the automation of a manual process.
Currently, 19 states operate ELT programs that process roughly two-thirds of new vehicle lien volumes. Other states are reviewing options for implementing ELT.