What is an eMortgage?
The term "eMortgage" generally refers to the use of electronic processes and signatures in the mortgage production process. More specifically, it refers to electronically-signed closing documents paired with an original electronic promissory note (eNote) signed on an eClosing platform and registered with the MERS eRegistry upon execution.
The term eMortgage is often used to indicate an eNote, even though eMortgage is the broader term for the electronic process that includes the eNote and the electronic security instrument.
It's important to note that all eMortgages are created only if the promissory note is signed electronically during an eClosing.
- Risk Management: Transactions are more consistent, transparent, and accurate.
- Security: Protocols meet industry-standard data integrity and security requirements.
- Document Administration: eMortgages streamline the note certification process, encourage efficient identification and transfer of security interest, and eliminate note endorsement requirements and errors.
- Underwriting: Automated reviews and exception-based processing are more easily facilitated.
- Costs: Electronic documents can be less expensive to manage, administer, and store.
- Post-closing Processes: Eliminating physical review of post-closing documents results in faster delivery to the secondary market.
- Facilitates standardized processes.
- Potential to streamline eligibility requirements, pre-closing, and post-closing compliance validation.
- Provides integration between MERS, lenders, servicers, and warehouse banks.
- Can be completed for both Whole Loan (a.k.a. Cash Commitment) or Mortgage Backed Securities (MBS) executions.
To learn more about how your business can implement eMortgages and eClosings, visit the eClosings and eMortgages page.