eNotes Requirements and Guidelines

The Bank's eNotes Requirements and Guidelines were posted on January 30, 2020

Download the complete eNotes Requirements and Guidelines

Section 1. Introduction

The requirements and specifications in this document are based on the requirements of the E-Sign Act and UETA.

Section Resources: MISMO eMortgage Closing Guide

Section 2. Other Considerations

eNotes do not include provisions that are already covered by the Bank’s Advances, Pledge and Security Agreements (APSA) or other policies already in effect.

Section 3. Collateral Requirements

Only certain types of mortgage loans are eligible in phase one: 1-4 family mortgage loans and closed-end term second mortgage loans.

Section 4. Supporting Documentation Requirements

The Bank will require Members to identify which loans in the pledge portfolio are held as eNotes versus traditional paper notes.

Section 5. eSignature Requirements

Requires the use of a specialized computing platform that allows the closing agent and the Borrower to electronically review, sign, store and transfer closing documents.

Section Resources: MISMO eMortage Closing Guide; Virginia Law; and FDIC Compliance Manual

Section 6. eNote Document Requirements

The promissory note must contain certain features and attributes when in an electronic format.

Section Resources: Fannie Mae Notes; Freddie Mac Instruments; and MISMO Category 1 SMART Doc®

Section 7. eClosing Requirements

To preserve the integrity of the electronically signed document, an eNote and other electronically signed documents must be tamper-evident sealed. 

Section Resources: MISMO eMortgage Closing Guide

Section 8. MERS® eRegistry Requirements

An eRegistry is a ledger that tracks an owner of an asset, any related transactions of that asset (including authentication) and the storage location of the original electronic version.

Section 9. eNote Vault Requirements

Members must conduct the appropriate due diligence review of their systems and confirm compliance with requirements in this section.

Section 10. Servicing System Requirements

The servicer must have a Bank-approved eNote Vault or have a third-party arrangement with a custodian or servicer that is holding eNotes on the Member's behalf.