Section 1. Introduction
The requirements and specifications in this document are based on the requirements of the E-Sign Act and UETA.
Section Resources: MISMO eMortgage Closing Guide
Section 2. Other Considerations
eNotes do not include provisions that are already covered by the Bank’s Advances, Pledge and Security Agreements (APSA) or other policies already in effect.
Section 3. Collateral Requirements
Only certain types of mortgage loans are eligible in phase one: 1-4 family mortgage loans and closed-end term second mortgage loans.
Section 4. Supporting Documentation Requirements
The Bank will require Members to identify which loans in the pledge portfolio are held as eNotes versus traditional paper notes.
Section 5. eSignature Requirements
Requires the use of a specialized computing platform that allows the closing agent and the Borrower to electronically review, sign, store and transfer closing documents.
Section Resources: MISMO eMortage Closing Guide; Virginia Law; and FDIC Compliance Manual
Section 6. eNote Document Requirements
The promissory note must contain certain features and attributes when in an electronic format.
Section Resources: Fannie Mae Notes; Freddie Mac Instruments; and MISMO Category 1 SMART Doc®
Section 7. eClosing Requirements
To preserve the integrity of the electronically signed document, an eNote and other electronically signed documents must be tamper-evident sealed.
Section Resources: MISMO eMortgage Closing Guide
Section 8. MERS® eRegistry Requirements
An eRegistry is a ledger that tracks an owner of an asset, any related transactions of that asset (including authentication) and the storage location of the original electronic version.
Section 9. eNote Vault Requirements
Members must conduct the appropriate due diligence review of their systems and confirm compliance with requirements in this section.
Section 10. Servicing System Requirements
The servicer must have a Bank-approved eNote Vault or have a third-party arrangement with a custodian or servicer that is holding eNotes on the Member's behalf.