DMV Issues New Guidance on Electronic Lien Releases

DMV Issues New Guidance on Electronic Lien Releases

GNYADA’s efforts to reduce the amount of time it takes for a lien to be released are paying off.  

Over the past year, GNYADA has addressed ways to speed up lien releases with DMV. For too long financial institutions have ignored the law to immediately release liens upon clearance of final payment by a dealer.

GNYADA, along with the other dealer associations has proposed that DMV accept registration and title applications that are accompanied by a printout from the DMV’s online Status Check webpage which shows when a lien has been electronically released by the lender. DMV accepted our proposal and issued a guidance that permits the Status Check printout to be used instead of a MV-901 or Lien Release letter issued from the lender.

This change means that dealers no longer have to wait for documentation from the lender to be delivered by mail.  

Now, when the lender has cleared the lien using DMV’s Electronic Lien Transfer (ELT) program, dealers can print the report from DMV’s Status Check webpage,  include it with the registration paperwork, and submit it to DMV or GNYADA’s Registration and Title Service (DMV-DIRECT).  DMV or DMV-DIRECT will process the application without any paper release from the lender.  

The NYS DMV Guidance about Online Status Check of Vehicle Titles and Liens can be found here.

GNYADA appreciates DMV's assistance in helping dealers navigate the vehicle registration processes complexities and its willingness to consider ways to streamline the process. GNYADA has requested that DMV advocates for increased participation by lenders in its ELT system.  The Association has also asked that lenders accept electronic funds transfers from dealers and require that lenders release all liens electronically.