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Mitigating Digital Mortgage Challenges

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The Legal League 100’s next webinar will be hosted on Wednesday, July 29, titled, “Going Digital: Understanding the Foreclosure Process on Digital Mortgages.”

Highlights of the webinar include:

  • What is a digital mortgage loan?
  • Federal and state regulatory framework
  • Getting it right at origination
  • Foreclosing on eMortgages
  • Best practices to mitigate common challenges
  • Jurisdictional challenges
  • Litigation trends and issues

The panel of experts comes from the law firm Orlans PC and includes, Regina Slowey, Esq., Managing Litigation Attorney; Jamie Welch, Esq., Lead Foreclosure Attorney; and John E. Tarburton, Esq., Lead Delaware Attorney.

“E-mortgages and e-notes are not going to disappear, and are steadily gaining popularity because of the increased flexibility and convenience to consumers and lenders alike—it is very important to understand the concepts and potential pitfalls involved in these types of transactions,” Slowey said of eMortgages.

A Perspective Blog from Fannie Mae in June, authored by Henry Cason, SVP and Head of Digital Products, said the reliance on digital closing options have become essential for lenders and borrowers working remotely.

Cason said the demand for digital has driven growth in eMortgages. In October 2018, nearly 17,000 eNotes were registered. That number rose by more than 500% to more than 95,000 in 2019.

That number continues to rise, as it hit a record high in February 2020 with 19,240 eNotes registered.

“Why? Because eMortgages can be faster, more secure, and less expensive than traditional paper-based mortgages. They help speed the completion and delivery of loans. Loan documents (including the promissory note) are created, signed, stored, and transmitted electronically, eliminating the risk of lost or missing documents and enabling automated data verification,” Cason said in the blog.

He added that both consumers and lenders are looking for a simple, quicker, and more reliable process that provides convenient and secure digital experiences.

“With the recent shift many people have experienced to remote work, digital closing options are top of mind for lenders and other stakeholders. The speed and ease of eClosings allows borrowers to review and even sign documents in advance, which dramatically changes the closing experience,” he said.

About Author: Mike Albanese

A graduate of the University of Alabama, Mike Albanese has worked for news publications since 2011 in Texas and Colorado. He has built a portfolio of more than 1,000 articles, covering city government, police and crime, business, sports, and is experienced in crafting engaging features and enterprise pieces. He spent time as the sports editor for the "Pilot Point Post-Signal," and has covered the DFW Metroplex for several years. He has also assisted with sports coverage and editing duties with the "Dallas Morning News" and "Denton Record-Chronicle" over the past several years.
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