Infographic: The 5 Rs of e-Eligibility for Mortgage Closings

 

The 5 Rs of e-Eligibility for Mortgage Closings

The 5 Rs of e-Eligibility for Mortgage Closings

There are five key factors that enable, restrict, and impact the extent to which a loan can be closed digitally. These factors are known as the loan’s e-Eligibility.

Why lenders are digitizing closings

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In 2020, four Federal Home Loan Banks (Des Moines, Dallas, Chicago, and Topeka) announced their eNote acceptance programs. Since then, Indianapolis, Atlanta, Boston, and Pittsburgh have followed suit.

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Ginnie Mae also launched its digital collateral program in 2020, initiating its acceptance of eNotes and eNotarization.

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The number of states that passed RON laws in recent months tripled to 30 in 2020 alone.

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As of March 2021, 2,217 counties support the use of eRecording, representing more than 85% of the US population

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2020 was a record year for eNotes, with 462,671 registered on the MERS(R) eRegistry. This shattered the previous record set in 2019 of 127,178, a 261% YOY increase.

81% of consumers now prefer a digital experience

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Lowered costs

Eliminate the costs associated with managing paper documents.

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Improved operational efficiency

Remove manual steps and reduce errors, so that you process more loans, faster.

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Better borrower experience

Offer borrowers choice, consistency, and convenience during a key moment of the mortgage process.

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Stronger partner strategy

Empower your staff to optimally engage their network of partners and stakeholders

What are the 5 Rs?

1

Counterparty Requirements

whether the investor, warehouse lender, or other counterparties that the lender will deliver loans to will accept electronically signed (eSigned) and/or electronically notarized (eNotarized) closing documents.

2

County Land Recording

whether the local county recorder’s office will accept eSigned and eNotarized closing documents for recording.

3

Title Underwriter Restrictions

whether the title underwriter imposes any restrictions on digital mortgage closings.

4

eNotarization Regulations

whether the state laws and regulations permit the use of eNotarization, generally in-person electronic notarization (IPEN) or remote online notarization (RON).

5

Settlement Readiness

whether the settlement agent is enabled to facilitate digital mortgage closings.

40% more closings processed compared with traditional closing methods, per lenders using Snapdocs

Additional eClosing resources

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AI in eMortgage Operations: From Market Trends to Actionable Strategies
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How to Evaluate the Right eVault: Key Requirements for eNote Compliance
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AFCU Achieves 100% eClosing Adoption and Perfect Member NPS for Home Equity Loans with Snapdocs
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Ready to transform your closing experience?