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Q&A

Webinar: April 22, 2020 at 13:00 EDT
QUESTIONS & ANSWERS

button 01Is there any information on investor acceptance? Even though the state has authorized, the investors have not.

There are certainly investor limitations to supporting RON. It is imperative you speak with your investors to fully understand their individual requirements. Fannie Mae and Freddie Mac both accept eSignatures and eNotes. (Ginnie Mae does not.) At the following link you will find information on Originators, Warehouse Lenders, Servicing Agents, Subservicers, Investors and Custodians integrated with MERS eRegistry. https://www.mersinc.org/products-services/mers-esuite/eregistry/eregistry-participants

button 01Can any of these hybrid options be used in all 50 states?

Yes, you can use the Hybrid options in all 50 states.

button 01Are there any resources for finding lists of warehouse providers that accept RON?

This can change rapidly. It is imperative you speak with your warehouse providers to fully understand their individual requirements. At the following link, you will find a list of warehouse providers who have registered with Fannie Mae as supporting eNotes. https://singlefamily.fanniemae.com/media/8611/display

button 01Are there any resources for finding lists of investors providers that accept RON?

There are certainly investor limitations to supporting RON. It is imperative you speak with your investors to fully understand their individual requirements. Fannie Mae and Freddie Mac both accept eSignatures and eNotes. (Ginnie Mae does not.) At the following link you will find information on Originators, Warehouse Lenders, Servicing Agents, Subservicers, Investors and Custodians integrated with MERS eRegistry. https://www.mersinc.org/products-services/mers-esuite/eregistry/eregistry-participants

button 01What is the consumer sentiment behind this type of technology?

With any innovative fintech, there are generational influences that can impact adoption. Consumers want instant gratification, speed and convenience. That reality is true in the mortgage origination and closing process. More and more consumers expect the convenience eClosing and RON provides to the home mortgage process.

button 01How are you integrating with recording offices in cities at close?

DocMagic is partnering with Simplifile to help create an efficient way to eRecord your Mortgage.

button 01How do you get around the finger prints for the notary?

The eNotary process is an improvement to the traditional in-person Notary process. While finger print ID validation is not required for eNotarization, the RON process does include additional forms of identity verification such as technology ID validation which confirms the borrower’s ID is not fraudulent or expired and KBA (Knowledge Based Authentication) questions related to the borrower’s personal information. The best eNotary technology partners provide all of the additional ID validations required through each state’s RON legislation and guidance.

button 01Will the notary be required to have an electronic notary within each state or is a “normal” notary sufficient?

DocMagic partners with approved eNotarization vendors, providing a seamless platform for your borrowers and settlement agents to complete the eClosing event.

button 01I thought documents cannot be signed with a date of signature prior to the date on the documents?

The Note and Mortgage documents must be signed by all parties on the closing date. Other loan documents can be signed prior to closing at the discretion of the lender and settlement agent, and in accordance with applicable laws and regulatory requirements.

button 01What about States that require wet signature?

In states that have not yet adopted full eClose and RON, lenders should take the steps now to support a Hybrid-eClose process which allows for most documents to be signed electronically in the eSign Console leaving only the wet signature, paper documents for the in-person closing event. This dramatically shortens the closing event and provides an excellent closing experience for your borrowers. Complete eClose support in all states isn’t a matter of “if”, it is a matter of when. In the meantime, you can leverage the speed and convenience of a Hybrid-eClose while you prepare for your state to support a complete eClose process.

button 01Once a lender has met all the requirements for E-Notes and has set up RON’s, are there any other requirements to begin having the security instrument electronically signed to do fully e-closings?

Here’s a basic checklist of requirements:

        • MERS® Number
        • MERS® Number
        • Investor to sell to
        • Funder/Warehouse Line
        • A company to service the eNote
        • Title Company to work with on the eClosing

button 01Can a closing agent use your platform if a lender accepts E-signed documents, but still needs a wet signed note?

Absolutely, you can distinguish whether the transaction is Hybrid 1 – 2 – 3 or completely electronic at the transaction level:

        • Hybrid eClosing: All documents including the note are signed electronically except for the notarized documents and the recorded documents. This is currently the most common method. In this model, the recorded documents and notarized documents are papered out
        • Totally paperless eClosing: All documents are signed electronically in the presence of a closing agent who will eNotarize the documents
        • Remote eClosing: No in-person ceremony needed. The closing agent collaborates remotely via approved remote eNotary technology and all documents are signed electronically

button 01Does the audiovisual recording of a complete e-Closing contain the entire closing or just the remote online notarized documents?

The required audiovisual recording includes the signing session for the remote online notarized documents. DocMagic’s Total eClose platform allows the borrower to sign their ancillary documents on the morning of the closing before meeting the Notary. If the borrower doesn’t have the opportunity to sign the documents that do not require Notarization in advance, the signing of these documents will also be included in the RON signing session and recording.

button 01Most state RON laws require the audiovisual recording to be stored for 10 years, Fannie and Freddie require that they be able to access the recording for the life of the loan.  Who stores the audiovisual recording and how does the lender/Fannie/Freddie access it?

The Notary partner maintains all of the video via their database.  You would be able to request files from them directly if needed.

button 01If a loan officer leaves mid loan can another loan officer be inserted into an existing eTransaction?

NotaryCam provides experienced Notaries to lead the borrower through the RON signing session and observers such as loan officers can be added to the RON closing to provide borrower support. Thus far, state legislation requires the RON signing session be completed without uninterruption, e.g a loan officer cannot be replaced during the actual RON signing session. Fortunately, DocMagic’s Total eClose platform allows for business parterns to be added and replaced (if necessary) before the RON signing session.

button 01Are you hearing any news from Investors that they will offer incentives to Originators who produce and deliver eNotes vs paper notes?

We’ve seen some investors provide minimal incentive for eNotes more as a marketing/bus. dev strategy but, at present, there is no execution lift between paper and eNotes. At the end of the day eClosing is more convenient, more efficient and lowers costs. We expect those savings will result in better execution at some point in the future.

button 01Do the agencies accept loans with a MIN number that is not done as an e-Closings?

Yes..

button 01Which states/jurisdictions can accept electronic docs for recording versus those that can’t?

eRecording is implemented at a county level. The Property Records Industry Association (PRIA) maintains a current list of eRecording counties that may be helpful. Visit: https://www.pria.us.

button 01The GSE’s require a lender keep a copy of the audio video eNotary session.  How is this stored for the life of the loan?

The Notary partner maintains all of the video via their database.  You would be able to request files from them directly if needed.

button 01In Doc Magic are we able to close some products completely electronically and others with IPEN?

LYes, DocMagic can facilitate by types of transactions.

button 01Can we get up and running with RON right away?  That is the area that we need assistance with sooner than later?

DocMagic can help you navigate the steps to be RON ready.

button 01How does the loan officer know when the borrower has e-signed their docs?

From the eSign Console, you can easily add notification recipients.

button 01Can the loan officer be added as a participant to the Hybrid transaction?

Yes, DocMagic has the ability to add Loan Officers.

button 01How do we handle Remote wet signed notarizations during COVID?

By utilizing one of the Hybrid eClose options, borrowers can eSign the majority of their loan documents via the eSign console.

button 01Some of our investors still maintain that they want to see wet signatures on the Note and Deed of Trust, while we understand others may not.  Do you have systems in place to help us determine how to conform with varying requirements?

There are certainly investor limitations to supporting RON. It is imperative you speak with your investors to fully understand their individual requirements. Fannie Mae and Freddie Mac both accept eSignatures and eNotes. (Ginnie Mae does not.) At the following link you will find information on Originators, Warehouse Lenders, Servicing Agents, Subservicers, Investors and Custodians integrated with MERS eRegistry. https://www.mersinc.org/products-services/mers-esuite/eregistry/eregistry-participants

button 01Is DocMagic planning to utilize blockchain technology?

Yes, this is something DocMagic is looking at in the future.

button 01Can we substitute a DocMagic document such as the 1003 and replace with another one?

Yes, you could do that if needed.

button 01Is an IPEN the same as a RIN – Remote Ink Signed Notarization?

No, IPEN allows for digital signatures and digital notary stamps, but ID validation and the signing session physically occurs in person. RIN does not require in person contact. RIN includes delivering the paper closing package to the borrower, the Notary uses audio-video technology to examine the borrower’s ID and watches as the borrower signs the paper documents with wet-ink. Then, the borrower returns the documents to the Notary and upon receipt, the Notary physically applies his/her notarial seal or stamp. RIN is not expected to extend beyond the COVID-19 national emergency.

button 01Do the agencies accept loans with MIN numbers that is not done as e-Close

MINs are universal for both eNotes and regular Paper Notes.

button 01How does my settlement agent schedule training with Doc Magic?

Please contact DocMagic to schedule training:
National Sales
(800) 649- 1362
sales@docmagic.com
www.docmagic.com

button 01What is the cost?

Please contact DocMagic for pricing:
National Sales
(800) 649- 1362
sales@docmagic.com
www.docmagic.com

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