09.29.21
eVault & MERS® – Critical Systems for Crucial Loan Documents
A closing package for a mortgage loan is comprised of many different documents that serve varying purposes. There are disclosures mandated by state and federal law or investors that are provided to inform the borrower about important terms of the transaction. There are documents that are given by custom or tradition that serve many different purposes that are usually required by the lender. Then there are the most important documents in the loan package, the promissory note, and the security instrument. The promissory note is crucial because it is the physical manifestation of the borrower’s promise to repay the holder/lender. The security instrument is important because it is the agreement that creates the property interest that gives the lender the legal right to take possession of the property or collateral if the borrower defaults on their promise to pay.
07.27.21
The Legal Framework of Electronic Signatures and Records – Understanding UETA
Every discussion regarding the legality of electronic signatures in the United States inevitably refers to the legal framework established by the Electronic Signature in Global and National Commerce Act (ESIGN) and the Uniform Electronic Transaction Act (UETA). The ESIGN Act is a federal law that was enacted into law on June 30, 2020 and became effective on October 1, 2020. UETA is a model law that was proposed and approved by the National Conference of Commissioners on Uniform State Laws (NCCUSL) in July of 1999.
07.01.21
The New Notarial Glossary
The history of notaries public (aka notaries) is interesting and varied, including origins that can be traced back to the ancient Roman law, or to the 13th and 14 century English common law. In Roman times, notaries were public officials that were often traced back to Senate or to the court where their function was to record public proceedings. In England, early notaries were appointed by a representative of the Pope and were often members of the clergy. In the United States today, notaries are usually commissioned on a state-by-state basis and are generally utilized for validating signatures, administering oaths, and authenticating the execution of certain documents such as deeds.
06.07.21
Nationwide RON Legislation Reintroduced
In May, Senators Mark Warner (D-VA) and Kevin Cramer (R-ND) reintroduced federal legislation designed to expand the use of Remote Online Notarization (RON) on a nationwide basis. The Securing and Enabling Commerce Using Remote and Electronic Notarization (SECURE) Act of 2020 was originally introduced in March of 2020. The original version of the bill stalled out and never made it past an initial introduction. There is hope that the reintroduction of this bill will gain more traction on Capitol Hill due to experience with difficulties entering into many transactions requiring notarization during the COVID-19 pandemic.
05.05.21
More Notes on eNotes
eNotes in the News
The use of eNotes continues to expand across the mortgage industry. In May, MERS® reported that 44,170 eNotes were registered on the MERS eRegistry (as of the end of April 2021). There have now been over 1,155,052 eNotes registered since the inception of the MERS® eRegistry. MERS is also reporting an 83% year-over-year increase in the number of companies transacting on the MERS® eRegistry, (as of April 2021). The use of eNotes had already started to increase before the pandemic, but public health measures initiated as a response to COVID-19 surely accelerated the use of eNotes. This acceleration will likely continue as the mortgage market shifts away from refinances and pivots towards more purchase transactions as rates increase and the demand for housing remains strong.
04.15.21
eNotes – A Digital Lending Accelerator
The digitization of financial transactions continues to accelerate, just as cash is giving way to electronic payments, traditional paper mortgage processes are being replaced by digital mortgage processes.
03.02.21
Great eExpectations
Customer expectation drives customer satisfaction. A customer at McDonald’s is generally satisfied when they receive their order quickly with a fresh tasting hamburger or fries. If that same customer goes to a high-end steak house, just getting a passable meal quickly is not enough. The expectation is now for perfect service, high quality steak and a memorable setting.
01.22.21
Reflecting on eClosings in 2020: A Strange Saga of Progress & Learning
2020 is a year that most of us would like to put behind us and forget, but as time passes, we may be able to reflect and see valuable lessons may have been learned during such a strange year. Nobody could have predicted a global pandemic, stay at home orders, social distancing, remote work, numerous Zoom meetings, and record levels of Netflix binging.