All Things “e”
In order to talk “cyber,” the world had to create a new vernacular to describe new electronic documents and processes, especially those surrounding real estate transactions, which have historically been paper intensive. Below are some definitions that may prove helpful as we go through the next decade in real estate.
eClosing: 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 developing standards for exchanging information and conducting business in the U.S. mortgage finance industry.
Remote Notary: A legally commissioned notary public 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.
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, achievable, retrievable and transferable.
An experienced attorney can insure you’re buying what you think you’re buying and protect you against unexpected and unwelcome costs, expenses and casualties at closing and afterward. My expertise can help protect your transaction and achieve the best results for you and your family. For more information please contact me at: 203-544-9945 or Beth@eedwardslaw.com.
“Fraud Insights,” Fidelity National Financial
