eMortgages Glossary

Key digital mortgage terms to know

eClosing: An eClosing (electronic closing) takes place when some (or all) of the closing documents are signed electronically. eClosings produce eMortgages only if the promissory note is signed electronically. While not all eClosings produce eMortgages, all eMortgages produced are the product of eClosings.

eNote: An electronic promissory note (eNote). The term "eNote" is often used interchangeably with “eMortgage.”

eMortgage: An electronic mortgage (eMortgage) is a mortgage loan for which the promissory note and possibly other documents (such as the security instrument and loan application) are created and stored electronically rather than by using traditional paper documentation that has a pen and ink signature. Most (but not all) eMortgages typically consist of a paper security instrument and an electronic note. The terms “electronic mortgage,” “electronic mortgage loan,” “eMortgage,” and “eMortgage loan” have the same meaning.

eNotarization: An electronic notarization (eNotarization) is a process in which a notary affixes an electronic signature and digital notary seal to an electronic document.

In-person eNotarization: In-person eNotarization (IPEN) refers to an eNotarization where the signer and notary are physically together in the same location.

Remote Online Notarization: A remote online notarization (RON) is a form of eNotarization where the signer is not in the same physical location as the notary. In a RON transaction, live two-way audio/visual technology is used to complete a notarial act. As of October 2019, almost half of U.S. states have passed some form of RON legislation. Visit www.mba.org for more information.

eRecording: Electronic recording (eRecording) is the electronic delivery of real property documents (such as deeds, mortgages, deeds of trust, liens, assignments, and satisfactions) to and from the document submitter and the appropriate recording office for filing in public records.

eDelivery: An electronic delivery (eDelivery) takes place when an eNote is transmitted to Fannie Mae.

eServicing: In electronic servicing (eServicing), a borrower's eMortgage payments and other mortgage services are managed by approved Fannie Mae servicers with full eVault (electronic vault) capabilities. Servicers must identify eNotes in their portfolio. In the event of a sale of the Mortgage Servicing Rights (MSRs), the servicer must ensure that the new servicer is able to service eNotes.