8 KEY “E” DEFINITIONS
Trying to explain electronic mortgages and closings to your customers and staff can be difficult. Use these definitions to help aid the conversation and discussion.
E-mortgage:
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.
E-note:
An e-note is another term for an e-mortgage. An e-closing produces an e-mortgage if the promissory note is signed electronically.
E-closing:
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.
E-vault:
Provides the ability to accept and receive and securely store electronic mortgage documents post-closing and prior to investor delivery. Hybrid closing: E-closing 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.
Remote Notary
: A legally commissioned notary public who is authorized to perform notarizations via audio-visual communication.
Electronic Notary:
Electronic notarization is a process whereby a notary affixes an electronic signature and notary seal (where required) to an electronic document.
Smart Doc: 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, Archivable, Retrievable and Transferable.
