Lender RON Readiness: Action Items to Implement Full Online Closings
Some of the nation's largest lenders are hungry for remote solutions that streamline the loan fulfillment process and bring simplicity and convenience to their customers.
We're proud to offer lenders these efficiencies through fully digital home closings, but it doesn't happen overnight. There are several major milestones on the path to online closings. If completed beforehand, these steps can vastly decrease the time it takes us to onboard your business.
Here's everything mortgage lenders need to know about closing online.
Step Lenders Can Take Without Notarize
1. You must have GSE approvals variances
Contact: Fannie Mae and Freddie Mac
If you plan to sell to Fannie Mae and Freddie Mac, you will need to start working through the approval process. Approvals can take a few weeks depending on the complexity of your organization, so Notarize recommends reaching out as soon as you decide to move forward with a full online closing strategy.
You must reach out to your contacts at Fannie Mae and Freddie Mac directly to get this started.
2. Develop your secondary strategy
Contact: Internal conversations with your operations team, MERS account manager
This strategy is required for eRegistry activation on MERS. Determine:
- Who you will sell to if you are not self-funding;
- If you will use a warehouse line; and
- If you will use servicers.
3. Get on the MERS eRegistry
Contact: MERS account manager
If you already use the MERS OnLine System (MOMS), you will most likely already have a MERS ORG ID.
If so, you will need to sign an eRegistry addendum to use this same ORG ID in the eRegistry. Once signed, MERS will activate your ORG ID in their testing environment.
Your account manager at MERS will be able to provide this addendum to you and answer any questions about operating in the eRegistry.
4. Decide on automatic document tagging method
Notarize supports many different types of document tagging. If you work with DocuTech, DocMagic, or Ellie Mae, you will use one of these methods.
If you use an alternate document provider, you will need to either leverage Notarize’s white text tagging solution or self-tag your documents.
After you have completed the above four steps, reach out to firstname.lastname@example.org. You will come prepared to this conversation with your MERS ORG ID, your MERS Testing Matrix, your test eVault with eOriginal, your automatic document tagging solution of choice, and your plan for eNote generation.
Milestones You Can Achieve with Notarize
Once you're ready to begin building your digital mortgage solution, we'll be there to help! Notarize will support the following during onboarding:
- eNote generation resources if needed
- MERS testing for eRegistry activation
- Automatic Document tagging solution implementation
- Integration implementation support
- Workflow development for closings
5. Provision an eVault
Notarize will work alongside you as you onboard an eVault provider to help store, manager, and ship your eNotes.
Your eVault provider will give you two vaults: a testing vault and a production vault. During onboarding, we'll connect both of these account to your Notarize lender account.
This process can take up to a week.
6. Generate your first eNote
If you are not using these integration, you must generate an electronic promissory note in an XML format. Notarize supports the 1.02 MISMO format for eNotes. Notarize can provide materials on eNote generation if needed including sample files, schema reference, and data dictionaries.
You can find more information about eNotes here.
7. Test your compatibility with MERS
MERS will provide a testing plan for you to complete in order to become activated in the live eRegistry.
This testing plan includes all considerations for your secondary strategy, and is imperative to ensure that there is connectivity between your eVault and the partners you wish to use. Notarize will assist with this testing, and once complete, will submit to MERS on your behalf.
8. Begin closing with Notarize
Once the testing has been accepted and confirmed by all parties, Notarize will request a production vault from eOriginal and connect it to your live lender account. Once complete, you will be ready to start closing live loans.