In an attempt to streamline and expedite the mortgage procedure by encouraging the application of digital documents, Federal Home Loan Mortgage Corp (OTCMKTS:FMCC) reported that it has released a list of firms that meet its requirements for developing, storing and signing electronic promissory notes. Generally called eNotes, they highlight the repayment debt of the debtor to the creditor.
Federal Home Loan commenced actively buying eMortgages from servicers/ seller in 2005. Today, it frequently buys eMortgages and accepts numerous electronic documents utilized in electronic closings and initial disclosures, such as IRS forms and loan applications. With the exclusion of eMortgages and the connected eNotes, sellers don’t want special sanctions to utilize electronic papers as long as their processes meet the requirements given in Freddie Mac’s Servicer/ Seller Guide. However, it should be noted that the eNote is innovative, noted Samuel E. Oliver III, VP of transformation administration for the Single-Family Business.
The eNote is a major document that requires to fulfill the ‘transferable record’ needs of electronic transactions guidelines. It has to be a unique, unaltered, single, commanding copy and there are superior technology needs that the mortgage industry has planned to comply with these guidelines. Whether sellers license, build or buy it, the system must assist the development, signing, transfer and storing of the eNote to fulfill these requirements. That’s why the management took the extraordinary measure of releasing this list of agreed vendors.
There are many firms that have closed Federal Home Loan complete approval process and fulfill the technical requirements to develop, sign and/or store eNotes. Two additional firms eOriginal and DocMagic have provisional nods as they move through the full assessment process. Many factors are leading interest in eMortgages, comprising borrower demands for faster, better, reliable service, and creditors’ desire to save expenses in the loan origination procedure. They are performing what they can to develop a more efficient system.
Earlier this year, Fannie Mae and Freddie Mac performed a joint survey, under the guidance of the Federal Housing Finance Agency, to better understand the problems facing the eMortgage industry.