MERS® eNote Solutions Frequently Asked Questions

Frequently Asked Questions

What is MERS® eNote Solutions?

MERS® eNote Solutions supports the creation, electronic signing, and vaulting (management) of eNotes in a single platform that is fully integrated with the MERS® eRegistry and MERS® eDelivery. MERS® eNote Solutions’ integration with the MERS® eRegistry and MERS® eDelivery allows users to register, transfer, and update the status of eNotes on the MERS® eRegistry and send and receive copies of eNotes through MERS® eDelivery.

Who benefits from the use of MERS® eNote Solutions?

Although mortgage loan originators see the most immediate benefits from the use of MERS® eNote Solutions, all parties in a mortgage loan ecosystem benefit from the security, data quality, and enhanced audit trail capabilities inherent in MERS® eNote Solutions. For example: Borrowers benefit due to an improved signing experience and assurance that the eNote they signed at closing is digitally tamper sealed immediately post execution. Originators benefit through efficiencies gained from data driven processes, reductions in errors, a decrease in operational costs, and immediate access to and control of their assets (eNotes). Investors, aggregators, and warehouse lenders benefit from the downstream data quality that eNotes provide, and improved access to and control of their collateral.

How can I request a demonstration of MERS® eNote Solutions?

In order to integrate with MERS® eNote Solutions, would the settlement agents need to obtain licenses for it or purchase and install any special hardware or software?

No. Settlement agents access a secure member-branded website and do not need to install any special software or hardware in order to access the digital closing portal. Additionally, the borrowers’ electronic signatures are captured using the settlement agent’s existing desktop computers, laptops, or tablets.

How does MERS® eNote Solutions verify the borrower’s identity and ensure that the closing occurs through the settlement agent?

MERS® eNote Solutions generates unique, transaction-specific access codes for both the settlement agent and borrower. Both sets of access codes are required to initiate the signing process in the digital closing room. These access codes are distributed separately to the settlement agent and borrower ensuring that the signing process does not occur without both the settlement agent and borrower present.

Does MERS® eNote Solutions capture the borrower’s consent for use of electronic documents and signatures as required by law?

Yes. MERS® eNote Solutions requires and captures the borrower’s consent before the signing process can proceed in the digital closing room.

Can a borrower miss an electronic signature where it was required or sign in an incorrect location on the document?

No. MERS® eNote Solutions highlights the section(s) that require the specific borrower’s signature on the eNote and does not allow the borrower to proceed until all areas requiring the borrower’s signature have been signed accurately.

How does the originator receive the signed eNote after closing?

Unlike paper promissory notes, the eNote remains in the originator’s eVault from creation through execution. This seamless process gives originators enhanced control and immediate access to their most important assets, the eNotes.

Can I track the status of the eNote through MERS® eNote Solutions?

Yes. MERS® eNote Solutions provides originators with access to a complete audit trail that tracks every activity related to an eNote transaction. Additionally, MERS® eNote Solutions notifies the originator as soon as the eNote has been executed by the borrower in the digital closing room.

Can we use MERS® eNote Solutions to close loans in every state that I currently do business in?

Yes. The use of eNotes (electronic promissory notes) and the electronic signing of eNotes is permissible in all 50 states. Since the promissory note is not a recordable document and does not require notarization, it is not subject to the various state-specific laws related to electronic recording or electronic notarization. For more information, please review our white paper, Enabled by Lenders, Embraces by Borrowers, Enforced by the Courts: What You Need to Know About eNotes.

How does the integration between MERS® eNote Solutions and the MERS® eRegistry work?

The MERS® eRegistry is the legal system of record for eNotes. It is the registry that identifies the Controller (legal possession) and Location (custodian) of eNotes for the mortgage industry. As a part of its security measures, the MERS® eRegistry does not allow transactions directly from its user interface. Instead, all transactions submitted to the MERS® eRegistry are performed through platforms that have connectivity to the MERS® eRegistry. MERS® eNote Solutions is a SaaS platform that allows originators to generate eNotes, present eNotes to borrowers for electronic signature via the digital closing room, manage eNotes in an eVault belonging to the originator, and communicate with the MERS® eRegistry (to register, transfer, and update the status of eNotes) through its existing connectivity with the MERS® eRegistry and MERS® eDelivery. It is the combination and integration of these products that support an originator’s use of eNotes from creation to sale in the secondary market.

How can I sign up for MERS® eNote Solutions?

To become a MERS® eNote Solutions subscriber, you will need to submit a signed MERS® eRegistry Addendum and MERS® eNote Solutions End User License Agreement. To obtain these documents, please contact the Customer Group.