Truliant is one of the first credit unions in North Carolina to sell mortgage eNotes to Freddie Mac as part of a digitized mortgage eclosing process. eNotes are an electronic version of a promissory note. They contain the same information that is in a traditional mortgage paper note but are created, signed and managed digitally.
In recent years, originators, servicers, attorneys, states and lenders have worked to facilitate widespread acceptance of a digital mortgage ecosystem. eNote securitization that fits within the existing mortgage industry framework is a final step toward accelerating usage by sellers and servicers.
“Especially at this time of buyers and sellers coming together to get real estate transactions done, our work with Freddie Mac highlights Truliant’s commitment to being an innovative player in the digital mortgage space,” said Beth Eller, vice president of mortgage lending.
Freddie Mac, one of the largest investors in mortgage-related securities, has been developing and implementing policies to take digital promissory notes as acceptable collateral for securities, which are the source of funds for many mortgages.
eNotes require documents to be stored digitally to ensure the same legal enforceability as paper documents. The eNote is a critical document that needs to meet the 'transferable record' requirements of electronic transactions laws. It has to be a single, unique, unaltered, authoritative copy. Whether sellers build, buy or license it, the system must facilitate the creation, signing, transfer and storage of the eNote.
When a closing is completed, the filed e-Note is tamper-sealed and registered with the Mortgage Electronic Registration Systems (MERS). E-Notes cannot be altered without that change being recorded on a digital audit trail, and the note cannot be lost.
Truliant, a seller/servicer, completed its first end-to-end eClosing in March, a process that streamlines communication between the borrower, lawyer and eNotary is fast and secure. Once documents are signed digitally, an eNote is securely submitted to the Mortgage Electronic Registration System. Truliant then electronically disperses the funds to complete the sale.