As a reminder, starting March 16, 2021, the Michigan Department of State (MDOS) will allow for the electronic exchange of lien and title information with lienholders in lieu of a paper certificate of title. The Electronic lien and Title (ELT) program will help minimize the threat of fraud and help keep the interest of the financial institutions safe. It eventually will be required for all financial institutions to participate in the ELT program. To participate, financial institutions can apply in one of two ways:

  • Sign up with one of the two approved service providers:
    • Service providers are third-party companies that handle all ELT transactions including adding, releasing, and removing vehicle liens.
    • DDI Technologies and Dealertrack are approved service providers for the state of Michigan.
    • Additional service providers may be approved by the State of Michigan at a later date.
  • Apply through Michigan Department of State online services:
    • An Authorized Requestor Application form will need to be filled out and uploaded through Michigan Department of State online services.
    • The application requires the financial institution’s name, address, and Federal Employer Identification Number (FEIN).
      • Entering a Corporate ID number is optional.

Once approved, all financial institutions participating in the ELT program:

  • Will release a lien electronically when the title record is held electronically.
  • Will be assigned a unique ID called a Lienholder ID.
  • The Lienholder ID must be presented to the Secretary of State or dealership at the time of title issuance.
    • If not included on proper documentation during title issuance, the title will be processed as a paper title and printed and mailed accordingly.
  • All liens placed on a title after March 16, 2021, should be submitted using the Lienholder ID so the title is held electronically.
  • Financial institutions can view when an electronic lien in their name has been added, removed, or released.
  • While releasing an electronic lien, a new electronic lien can be added by entering the new Lienholder ID.
  • Once all electronic liens are released, the Secretary of State will print and mail the title to the customer.

For questions contact Debbie Mitin

View the Michigan Department of State best practices regarding the application of title for financed motor vehicles.
MI SOS presents a webinar on 2/2/21 on ELT. Watch it here

Dealertrack, one of the State of Michigan approved service providers for electronic lien and title (ELT), is an MBA Service Corporation Endorsed Partner, and they look forward to being able to offer assistance to our members with their title administration process.  For more information on Dealertrack’s ELT services, read here . Please reach out to Jill Verscheure, MBA Service Corporation Vice President, at 517 342-5681 or jverscheure@mibankers.com

ELT Questions and Answers

  • Can e-Services be configured to allow for multiple account managers? Another question stating- Can ELT participants have multiple account owners on e-Services account?
    • Each account is set up for 1 account manager at this time.  If need be, we can discussing adding a second manager in our programming.

  • Can users with existing e-Services account piggyback their ELT account?
    • Yes, there is an option to add account access to the account once you are logged in.

  • Can ELT related fees utilize monthly account billing if existing payment billing account exists?
    • No, lienholders can complete payments by credit card, checking account, or by EFT

  • When adding a second lienholder, is the first lienholder notified?
    • If the first lienholder is using a Service Provider, the Service Provider will receive a file with this information.
    • For Lienholders using e-Services, if they searched for the vehicle they would see the updated information.

  • How does lienholder know if it is a refinance/to add lienholder?
    • This conversation has to be between both Financial Institutions.  When determining the amount that needs to be paid off, the new lienholder should be providing their lienholder ID to be added during the lien release performed by the current lienholder.  This is assuming both lienholders are in the ELT program.  Once the lien has been added the new lienholder would be able to view this information on e-Services. If they are using a Service Provider, the Service Provider will receive a file for this information.

  • Enrollment forms are available on 3/16/21

Webinar


Michigan’s initiation of Electronic Lien and Title adds to the complexity of an already complex paper titling process — particularly where it means lenders must juggle two separate processes simultaneously. Join MBA Service Corporation's Endorsed Partner-Dealertrack/Cox Automotive’s Senior Lender Solutions Subject Matter Expert, Robert Christini, as he covers the digital evolution taking place in automotive retailing — and Dealertrack solutions available to support lenders.

Watch the MBA Service Corporation and Endorsed Partner Dealertrack Cox Automotive webinar: ELT Coming to Michigan-Dealertrack Solutions for Lenders.

Below is Robert Christini’s  contact information below-

Robert Christini
Senior Lender Solution Expert
1-484-538-6412
Robert.christini@coxautoinc.com
https://us.dealertrack.com/