| e |
A prefix meaning electronic. |
| eClosing |
The act of closing a mortgage loan electronically. This occurs through a secure electronic environment where all closing docs are accessed and executed via the Web. Also referred to as the “execution” phase of creating an electronic mortgage loan. |
| eCustodian |
The holder (not beneficiary owner or entity that maintains the holder-in-due- course rights) of the authoritative copy of the electronic promissory note. A financial institution that contracts with a lender or investor to maintain custody of certain electronic and paper mortgage documents. An eCustodian is not the data storage provider, but the entity whose role it is to ensure the safe and accurate storage and archiving of critical loan documents. |
| eDelivery |
Providing for the transfer of data and documents created electronically to another entity. |
| eDoc, eDocument |
Any document that has been converted to or executed in electronic form. An eDoc is intended to provide an equivalent to a paper document without a need for printing. The desire for a paperless environment has been a key driver in the evolution of the eDoc formats from imaging to electronic records. Legislatively, ESIGN and UETA similarly define an electronic record as a record “created, generated, sent, communicated, received, or stored by electronic means.” |
| eDoc Custodian |
A financial institution that contracts with a lender to maintain custody of certain electronic and paper mortgage documents on the lender’s or investor’s behalf. |
| EFSC |
See Electronic Financial Services Council. |
| Electronic Financial Services Council (EFSC) |
A national trade association promoting legislation and regulation designed to ensure that electronic commerce continues to support the availability and delivery of financial services. The EFSC advocates positions on public e-commerce policies affecting the offering of financial products and services, including mortgage loans, insurance products, investment products, consumer loans and on-line banking. For more details see http://www.efscouncil.org. |
| Electronic Signatures in Global and National Commerce Act (E-SIGN) |
On June 30, 2000, Congress enacted this Act to facilitate the use of electronic records and signatures in interstate and foreign commerce by ensuring the validity and legal effect of contracts entered into electronically. |
| eMortgage |
An eMortgage is just like a paper mortgage without the paper. The critical loan documentation, that is, the promissory note, assignments, and security instrument, are created, executed, transferred, and ultimately stored electronically. Parts of the transaction that precede the actual closing may occur on paper initially, but are ultimately converted to electronic form prior to closing. |
| Encryption |
The manipulation of a packet’s data in order to prevent any but the intended recipient from reading the data. Encrypted data is often referred to as cipher data. |
| Encryption Key |
(Also referred to as a Digital Signature.) A cryptographic method (asymmetric encryption transformation) of authenticating the identity of the sender of a message or the signer of a document that can also be used to ensure that the original content of the message or document has not been changed. Digital signatures are easily transportable, cannot be imitated by someone else, and can be automatically time-stamped. (The ability to ensure that the signed message received means that the sender cannot easily repudiate it later.) |
| Endorsement |
1) A signature on a negotiable instrument by which title to property mentioned therein is assigned and transferred. 2) A notation added to an instrument after execution to change or clarify its contents. 3) In insurance, coverage may be restricted or enlarged by a policy endorsement. 4) For FHA loans, a notation placed on the note by the FHA indicating that the loan is insured under the National Housing Act. |
| eNote |
A Transferable Record or Negotiable Instrument as defined by E-SIGN or UETA. An electronic promissory note that is stored in a file and is never intended to be converted to a paper note except for auxiliary processing or as a fail-safe for disaster. In order to be negotiable and transferable, an eNote must be labeled clearly as the “authoritative copy” of the electronic promissory note. |
| eNote Clause |
Also referred to as eNote Language. Additional terms that must be included in the text of an eNote to comply with E-SIGN and UETA requirements. It has two parts: 1) Ensures that borrowers acknowledge they are signing electronically, and 2) Informs any holder of the eNote that legal ownership can be determined by consulting the eNote Registry. |
| eNote Registry |
A Mortgage Industry-Sponsored Registry designed to track and determine the owner or controller of eNotes. The eNote Registry is required to ensure that eMortgages comply with eSignature laws. See The MERS eRegistry. |
| eNote Registration |
The process of creating the initial record in the MERS® eNote Registry for tracking the controller of the eNote. |
| EOLT? |
|
| EOLT Execution |
The second part of a 3-part process required to execute an EOLT. The actual closing or contracting part of the transactions during which parties involved electronically review and sign documents. |
| EOLT Post-Closing |
See EOLT Post-Execution |
| EOLT Post-Execution |
Third part of a 3-part process necessary to execute an EOLT. This is the last part of solidifying an EOLT. It represents the recording, filing, and archiving of documents previously electronically signed. Many validating activities occur at post-execution including issuance of the final title insurance policy and various funds disbursement activities. |
| ePackage |
Short for eMortgage Package. An XML specification that provides a flexible yet simple mechanism to collect one or more SMART Documents, images, Word Documents, PDFs and other related and/or encoded embedded files in a single ‘electronic file’ for exchange between two trading partners. |
| Equity |
The net value of an asset. In the case of real estate, the difference between the present value of and the mortgage amount owed on that property. |
| eRecord |
A record created, generated, sent, communicated, received, or stored in a medium other than paper. |
| eRecording |
The act of registering the security instrument and other recordable documents electronically with the county recorder or similar jurisdictional authority for the purposes of making real estate documents public and providing constructive notice. |
| eSecurityInstrument |
An electronic security instrument such as a mortgage or deed of trust evidencing the pledge of real estate as collateral for the loan. |
| eServicing |
The servicing of an eMortgage. To date, the implications of servicing eMortgages seem minimal on a performing loan. The nuances of pursuing foreclosure using eMortgage documentation still need to be addressed. |
| E-SIGN |
See Electronic Signatures in Global and National Commerce Act. |
| eSignature (electronic signature) |
An electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person to acknowledge intent to sign an electronic record. eSignatures commonly include a typed name or other simple mark. They also can be represented by a digitized image, such as a “picture” of a written signature created by a signing pad or a photograph of the borrower. Digital signatures are eSignatures created by a more rigorous technology that captures the document signed in a formula that is embedded in the document. Digital signatures can be “unraveled” to determine whether a document has been tampered with in any way. Digital signatures can also authenticate the signer and provide privacy and non-repudiation. Although eSIGN allows eSignatures to be made by a sound or video clip, the industry generally is not allowing sounds or videos at this time. |
| eSignature Laws |
A term used to refer to collective legislation laid out by UETA and E-SIGN. |
| Electronic Signatures in Global and National Commerce Act (E-SIGN) |
A Federal law designed to provide national requirements for states that have not adopted a version of UETA. UETA and E-SIGN provisions are substantially the same. Together they are known as eSignature laws. |
| Estate |
The ownership interest an individual has in real property. The sum total of all the real and personal property owned by an individual at the time of death. |
| eUnderwriting |
The act of underwriting a loan using electronic means. Today, automated underwriting tools allow the credit package of a loan to be underwritten and electronically scored. Using eMortgages expands this opportunity by enabling lenders to obtain income documentation and validation, asset validation, and collateral assessments through electronic documentation and interfaces. These factors comprise eUnderwriting. |
| eVault |
An electronic vault is a transferable records management solution that meets E-SIGN, UETA, and other compliance requirements. The concept is similar to the paper vaults managed by the Document Custodian Industry today. Because there will be multiple eVaults, there is a need for national registry service (MERS® eRegistry) to manage the authoritativeness of records. In addition to the transferable records, the solution may support other types of eDocuments. |
| eVaulting |
The act of storing documents safely. In the electronic world this environment consists of an electronic or virtual vault, storage in which is electronic. Retrieval is achieved through an electronic and possibly Web-based interface. |