A traditional promissory note for a mortgage closing is an irreplaceable piece of paper. If something happens to it — it gets misplaced, the ink fades, or it’s destroyed by a natural disaster — the lender and buyer face a complex process. Over the life of a 30-year or even 15-year mortgage, the odds of something happening to the note is high. Not to mention the cost of transporting and storing the document in a secure location.
For many reasons, the paper promissory note no longer makes sense in today’s world. As mortgage and titling professionals turn to eClosings, they see firsthand the benefits of using eNotes, which are legal in all 50 states and required for eClosings.
During an eClosing, the eNote, which is the digital replacement for a promissory note, becomes the cornerstone of the process and replaces the physical note. The eNote is the official document that proves the borrower promises to pay the lender the agreed upon amount based on specific terms. However, an eNote is more than a digital version of the physical promissory note and traditional closing process.
eNotes must meet three criteria when used during an eClosing:
To meet these specific technical and process requirements, lenders turn to an eClosing solution such as Notarize. The platform enables all of the technical details for the eNote — from eSignatures to storing in an eVault — in a single place. Notarize integrates the eNote seamlessly into the eClosing workflow to ensure its validity.
By using eNotes, lenders see numerous benefits for their customers and employees:
As you design the future of closings at your organization, look at how eNotes fit into your process. By implementing an eClosing software solution like Notarize, eNotes can be seamlessly integrated into the workflow all while saving time and money and increasing customer satisfaction.