West Virginia Rolls Out Successful Pilot for National Digital Titling Clearinghouse

The National Digital Titling Clearinghouse, created by West Virginia’s Department of Motor Vehicles (DMV) in order to expedite vehicle titles across state lines online, became available as the first of its kind in August 2023.

At a recent CLM webinar, titled “West Virginia DMV’s National Digital Titling Clearinghouse Now Available” (replay available here), CLM CEO Ronna Ruppelt sat down for an exclusive conversation with Everett Frazier, West Virginia DMV commissioner; and Richard Allen, the state’s transportation division director, and they discussed how the clearinghouse can process titles in real time. “The day we get them is the day they’re going out—and that’s unheard of in the industry,” said Frazier. “If we can do that for the state of West Virginia, then why can’t we do that outside of West Virginia? That’s where the idea comes from.”

Traditionally, the entire documentation and transaction process would be done through the mail and take several months. Now, with the clearinghouse system, however, “non-resident businesses can send us their documents, we can view them instantly, if it’s good, we approve it; if not, we let them know,” according to Allen. When the title is completed, it batch-prints and is mailed the next morning.

The clearinghouse is currently in its pilot phase, which began initial transactions around October 2023. “Those who are participating in the pilot have already been selected,” explained Allen. “We are always willing to meet with…non-resident businesses, but right now we are focusing on the companies we have getting up and running….” National auto retailers, fleet operators, insurance carriers, salvage vehicle companies, and lenders from all 50 states are eligible to sign up for the onboarding process, even when the vehicle is located in a jurisdiction outside West Virginia.

Benefits for the Insurance Industry

Using this system, insurance professionals “can quickly put titles into their name, they can handle repossessions in their name, applying brands—they can do everything near-instantly,” said Allen.

Frazier added, “Just the overall time to process a transaction would decrease tremendously…time means everything in their industry.”

Currently, there have been no issues as far as ability to process a title for any particular state. “We make sure any documents we’re getting are the legal documents of that state,” assured Frazier. Furthermore, to ensure the titling process meets all federal guidelines, the clearinghouse accepts electronic signatures on all documents.

Reception and Future

Reception for the clearinghouse system so far has been “very positive,” according to Frazier. “The more other states become digital, the better all this will work.” In the future, the clearinghouse plans to utilize artificial intelligence (AI) to further improve timeliness.

Allen added that there has been “nothing but praise for the system. [There is] excitement for the future and what we can do for the businesses.”

As of now, there is not a specific date for when the West Virginia DMV will officially exit the pilot phase. A fee schedule will be posted shortly that will give a breakdown of the cost for each transaction.