While automating the mortgage experience for consumers is a top priority in the industry, true success in adopting eMortgages includes creating the tools to support electronic workflows post-closing as well. These tools must not only ensure security and privacy, but make it easy to store, transfer and access closed eNotes.
To provide a more secure eVault experience for interim funders like warehouse lenders and secured parties like the Federal Home Loan Banks, MERSCORP Holdings, Inc., the parent company of Mortgage Electronic Registration Systems, Inc. (MERS), has launched the MERS eRegistry Secured Party and Secured Party Delegatee fields. These new Rightsholder fields enable those parties to better identify their security interests in electronic promissory notes.
The MERS eRegistry is a national electronic registry system which tracks the legal ownership and location of the authoritative copy of electronic promissory notes (eNotes). In alignment with the new MERS eRegistry release, Docutech has updated its Solex platform to support the new secured party capabilities. Docutech’s Solex eVault, part of the Solex eClosing platform, provides full document storage, management and security, as well as the ability for lenders to transfer, store and control electronic promissory notes and related loan documents. This platform, approved by Fannie Mae and Freddie Mac, also allows documents to be shared both internally and externally with warehouse lenders and document custodians alike.
Lenders utilizing Docutech’s Solex eVault now have the ability to enable the Secured Party feature. This feature allows specific entities to be listed as a Secured Party on eNotes instead of being named the Controller. When a Transfer of Control is initiated, the entity who is named as Secured Party has the ability to review and approve it prior to the MERS eRegistry performing the transfer. Upon completion of the transfer to the end investor, MERS will automatically clear the Secured Party field and the interim funder will no longer appear as a rightsholder. In addition, the Secured Party has the ability to perform a Transfer of Control to themselves, should an exception issue occur.
The Secured Party field as well as the Secured Party Delegatee field (which allows the Secured Party to designate an organization to perform transactions on its behalf), are now active as a result of the MERS eRegistry’s November system release. To minimize confusion, lenders using Docutech’s Solex eVault can turn off these features if they don’t need them, keeping the user interface clean and intuitive. For more information about on the MERS Secured Party Field, MERS System Members should visit members.mersinc.org.
The integration between the MERS eRegistry and Docutech ensures the privacy of every party’s information while streamlining the mortgage process as a whole. This also enables lenders to continue providing consumers the convenient, faster-paced and more customized mortgage experience they want.