eMortgage Complications Solved
eMortgage, and other digital mortgage processes have a range of complexities and nuances that may be unfamiliar to many lenders. It’s for good reason too. Not because it’s a hidden secret, but because the complexity provides security to one of the most important documents an individual can be hiding in their life.
While some aspects of the technology are relatively straightforward, such as transferring ownership via digital title transfer or recording deeds through remote online notarization (RON), others involve more sophisticated software infrastructure. This could include using electronic signature authentication, leveraging digital wallets and biometrics, or creating a secure eNote repository.
When it comes to the eNote itself, there are also a number of complexities that lenders have to consider. These include validating digital signatures and timestamping the document, ensuring a secure file transfer protocol (FTP) is in place, and verifying the integrity of the eNote by using audit trails or hash values. If any of these steps are not properly carried out or verified, it could lead to fraudulent activity, which would be devastating for the lender.
Finally, lenders have to ensure that their internal processes are in order so that they can quickly and accurately assess and approve loan applications. This means having a reliable system in place to capture eNote information and managing workflow properly. All of these factors show that while eMortgage technology has the potential to reduce paperwork and simplify the loan process, it can also be a complex web of software and processes that lenders must understand in order to make sure they are compliant with all applicable regulations.
eMortgage Ecosystem
In summary the 3 main parts of the eMortgage ecosystem consist of:
- A registry – known as MERS (Mortgage Electronic Registry System)
- A XML file format – called a MISMO SMARTDoc eNote
- A data storagefacility – known as an eVault
You might be familiar with MISMO from their standards with Remote Online Notary platforms. The organization plays another integral role here.
It’s clear that eMortgages involve multiple layers of complexity. Lenders must take extra steps to ensure that their eMortgage process is secure and compliant with all applicable regulations. To do this, they must make sure they understand the technology behind the eMortgage curtains. Make sure you are up to date on your research and current standards before you select your eMortgage provider.