Friday 6 March 2020

All things "e"

Posted at 7:37 AM

eClosing: 

All things

The act of closing a mortgage loan electronically.  This occurs through a secure electronic environment where some or all of the closing documents are executed and accessed online.

Electronic Notary:  

Electronic notarization is a process whereby a notary affixes an electronic signature and notary seal (where required) using a secure public key to an electronic document.  Some states issue an eNotary commission in addition to a traditional notary commission.

eMortgage: 

A mortgage loan where the critical loan documentation, specifically the promissory note (e-note), is created electronically, executed electronically, transferred electronically and ultimately stored electronically.  This often includes a wet-signed security instrument.

eNote:

An e-note is another term for an e-mortgage.  An eNote is an electronic version of what was traditionally a paper document.  An eMortgage is created when an electronic promissory note is produced.  An eClosing produces an eMortgage if the promissory note is signed electronically.

eVault:

Provides the ability to accept, receive and securely store electronic mortgage documents post-closing and prior to investor delivery.

Hybrid closing:

eClosing process where certain key documents (e.g., Note, Security Instrument) are printed to paper and traditionally wet-signed, while other documents throughout the process are signed electronically.

MISMO:

The Mortgage Industry Standards Maintenance Organization (MISMO) is a not-for-profit, wholly owned subsidiary of the Mortgage Bankers Association responsible for delveloping standards for exchanging information and conducting business in the U.S. mortgage finance industry.

Remote Notary:

A legally commissioned notary pulblic who is authorized to conduct notarizations over the internet via digital tools and a live audio video call.  All notaries, no matter how they perform their service, must watch as someone signs a document.

SmartDoc:

An electronic document created to conform to a specification standardized by MISMO.  A SMART Doc can lock together data and presentation in such a way that it can be system-validated to guarantee the integrity of the document. SMART is an acronym meant to explain the purpose of the document standard - to make documents securable, manageable, achievable, retrievable and transferable.