The Voice • March 2019

The digital migration towards fully electronic practices continues to gain momentum within the mortgage industry. This migration is bringing about plenty of change to the traditional means of mortgage transactions.

Steps have been taken to digitize the mortgage application process for the borrower with the eMortgage option. Now, steps are being taken to fully digitize the mortgage closing process with the eClosing.

Mat Ishbia, President and CEO of United Wholesale Mortgage, explains the eClosing as “regular conventional loans. eClosings aren’t anything out of the ordinary, they just present a different way that docs are done.” [1] A key component to the success of the eClosing is centered on the success of the eNotarziation practice within the U.S.

As eNotarization continues to gain popularity, the state law and legislation involving it take on unique forms in each practicing state. Ishbia continues, “Everyone is ready and excited to do eClosings in other states, but they want to make sure that all the state laws are aligned…if a state doesn’t explicitly say that remote notarization on mortgages is acceptable, then you have to infer based on other things.” [1]

In May 2017, the first fully electronic closing was hosted in North Carolina. NC Secretary of State Elaine Marshall attributes eNotarization being key to the success of the eClosing. Marshall stated, “The eNotary is essential to moving legal filings into the digital age. People and institutions still want to know that a notary was there in the room confirming the signer’s identity even if the filing is moving through cyberspace instead of being a pile of paper.” [1]