The current state of e-Mortgage Implementations

NEWSWIRE: December 7, 2016


Electronically-executed mortgage are real. Emboldened by the original federal laws UETA and ESIGN, organizations in the mortgage lending space have been attempting electronic mortgage closings for years, with varied success. While we have not advanced yet to the point where truly paperless, digital mortgages are standard, there is a slow but increasing drumbeat of activity that is propelling these processes forward.

Much work remains to be done, however.

A recent analysis published by Lexology examines the turbulent history of e-Mortgages and its primary associated issue, electronic notarization.

Remote, electronic notarization has long been a thorny issue with stakeholders in the space. Many notaries hold firm to the belief that for a notarization to be considered authentic, the notary must be in the same physical location as the person being represented. In addition, this is stated as a requirement to ensure that the person is not signing a document under duress. While video cameras can help alleviate this concern, widespread adoption of remote notarization remains a hurdle.

On the other hand, the rapid advance of digital transactions and the digitzation of all of our lives puts this in a very different perspective as 2016 comes to an end. More and more, consumers and commercial ventures have expectations that many, if not all, of their business transactions can and should be able to be done digitally, and not with all parties in the same physical location.

The full article can be read here.