Filling Out the Digital Mortgage Puzzle

Executing on a complete digital mortgage strategy has been much like completing a giant puzzle. As puzzle pieces like technology infrastructure, regulatory standards, consumer demand, and the need to cut origination cost have aligned, the digital mortgage picture has become more complete.

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Fannie Mae and Freddie Mac, along with Mortgage Electronic Registration System (MERS®) eRegistry and eDelivery, have been critical components to the actualization and furtherance of eMortgages. Given that the GSEs make up the majority of transactions on the secondary market, developments in eNote delivery and acceptance continue to help advance the adoption of a fully digital mortgage process.

Fannie and Freddie have been accepting eNotes since the MERS eRegistry went live in 2005, and they continue to support and promote the adoption of eClosings and eMortgages by advancing their systems and looking to future enhancements like automated eNote validation. Fannie Mae migrated to a new eVault system in 2017, and currently is the largest holder of eNotes in the country.

Following the example set by Fannie Mae and Freddie Mac, the U.S. Treasury Department is encouraging Ginnie Mae and the Federal Home Loan Banks to work toward accepting eNotes. As part of their 2020 Roadmap, Ginnie Mae is currently working on eNote acceptance, and the FHLBs have met with Docutech and other eClosing solution providers in recent months, to learn more about the details of eNote management and transfers. Closing these gaps will provide stronger nationwide coverage for eClosings.

To help lenders ensure that their digital mortgage documents can be accepted, both Freddie Mac and Fannie Mae maintain a list of vendors who meet their data and security requirements. Docutech has been approved by both entities for Solex eClosing, Solex eVault, and SMART Doc® eNote delivery.

SolexTM eClose enables lenders to accelerate and streamline the loan process from application to closing and reduce cycle times from closed loan to investor purchase through secure generation, delivery, signature, close, transfer, and storage of electronic loan documents.

Docutech’s proprietary Solex eVault is integrated with the MERS eRegistry and eDelivery for all eNote management transactions, to securely store and manage all loan documents. The MERS eRegistry is the legal system of record for identifying the Controller (holder), Servicing Agent (servicer), and Location (custodian) for the Authoritative Copy of every registered eNote in the country today and is required by Fannie Mae and Freddie Mac for eNote transfers.

After eClosing, lenders can register the eNote on the MERS eRegistry through the Solex eVault and then transfer control to an investor, or update servicer and location when needed. In addition, a lender can then later flag an eNote as being paid off, assumed, modified, and other life-of-loan events. MERS eDelivery can also be leveraged to securely transmit eNotes and other documents to the warehouse lender or final investor.

Executing a digital mortgage strategy shouldn’t feel like a puzzle with a complex array of disconnected pieces. See how Solex eClosing, a complete eClosing solution platform, can help enable your digital mortgage evolution.

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