Improvements in operational efficiencies are being touted as the main drivers, meaning lower costs, more liquidity and higher profitability. For eliminating paper-intensive advocates the commercial loan closings and migrating to e-mortgages believe that all parties involved will benefit from the changes - lenders, borrowers, investors and mortgage-industry service providers.
When you are convincing to lenders the deal is legal even if they haven't touched the physical promissory note and mortgage or checked the ink on both documents to see if they are original documents. And moving to e-mortgages would create a need to change because the paperless concept encompasses a variety of activities such as:
- Assembling loan documents
- Obtaining the borrower's consent
- Recording
- Post-closing storage
- Sale of loans
There are several key components to an e-mortgage that all must work in tandem.
Incorporating electronic records within the existing paper system in place for the official public records at state and local jurisdictions.
- E-vaulting and E-registry-
Establishing a single nationwide e-registry as a method for registering the location and holder of the single authoritative copy of the promissory note, which is the most important document besides the recorded mortgage in a commercial loan.
The legal acceptance of alternatives to the 'wet ink' signature.
