North Carolina Department of Secretary of State eclosing Pilot Program

Transcription

1 North Carolina Department of Secretary of State eclosing Pilot Program Honorable Elaine F. Marshall North Carolina Secretary of State THURSDAY, OCTOBER 6TH 1 PM 5 PM 6200 FALLS OF NEUSE RD, SUITE 300 RALEIGH, NC 1 1

2 Welcome Ken Sykes, President North State Bank Mortgage 2 2

3 Introductions & Purpose Ozie H. Stallworth Electronic Notarization Director N.C. Secretary of State 3 3

4 eclosing Definition An eclosing is the act of closing a mortgage loan electronically. This occurs through a secure electronic environment where some or all of the closing documents are executed and accessed online. This is often a hybrid process in which certain key documents (e.g., Note, Security Instrument) are printed to paper and traditionally wet-signed while other documents throughout the process are signed electronically. - Fannie Mae eclosings and emortgages (enotes) FAQ, 11/2015

5 emortgage Definition An emortgage is a mortgage loan where the critical loan documentation, specifically the promissory note (enote), is created electronically, executed electronically, transferred electronically and ultimately stored electronically. An eclosing produces an emortgage only if the promissory note is signed electronically. - Fannie Mae eclosings and emortgages (enotes) FAQ, 11/2015

6 Recap and Observations From September 18 th Meeting Ozie Stallworth Electronic Notarization Director N.C. Secretary of State 6 6

7 Recap and Observations Preparedness of NC 73 Counties are erecording, enotary Program esignature statutes Considered the successful CFPB eclosing Pilot Florida and New York court rulings supporting esignatures GSE have been investing in enotes for 12 years FHFA 2016 Score Card Assess and, as appropriate, implement strategies to improve the lending industry s ability to originate and deliver emortgages to the Enterprises Compliance with new regulations makes eclosing critical N.C. Department of the Secretary of State

8 Recap and Observations Benefits of eclosing: Consumers demand faster, better, and more reliable service/processes Customer retention efforts are key Creates educated and empowered consumers Closings go from 1 hour to 15 minutes Validating Data Earlier in the Process Eliminate Missing Documents and Document Signing Errors No Shipping, Storage or Retrieval Costs No Lost Note Affidavits N.C. Department of the Secretary of State

9 Industry Insights Ken Sykes, North State bank Matt Hunoval, Hunoval Law Tim Anderson, DocMagic 9 9

10 Industry Insights Tim Anderson MERS As of 339,852 enote eregistrations PRIA As of (8/31) 1,511 erecording counties 80% of total population Fannie/Freddie has waived sub-servicer evault requirement Freddie has waived wet signing paper copy of enote Lender has eclosed and sold FHA loan into GinnieMae pool New buyer entering market along with additional warehouse lenders FHFA (Fannie/Freddie) coming in 2017 Move from post closing to pre-closing verification of the loan data FannieMae - EarlyCheck, FreddieMac - Loan Quality Advisor tools and portal Move to MISMO 3.3 Intelligent SMARTDocuments Not just Loan Estimate (LE) & Closing Disclosure (CD) with TRID but all closing documents Uniform Closing Dataset, (UCD, MISMO 3.3) (9/27) Uniform Residential Loan Application, (new URLA MISMO 3.4) (1/2018) 10

11 Lender Generated Closing How Documents are prepped for eclosing MERS Testing Protocols for enote/evault Tim Anderson, DocMagic 11 11

12 Ensuring a complete, current, compliant data & document process Document Creation & edelivery Clients Correspondent Originators/Sellers Lender LOS Ellie Mae Lender LOS Calyx Closed Loan Data File (MISMO/XML UCD) Compliance Cloud Electronically deliver eclosing Room Lender LOS MortgageFlex Lender LOS MortgageBot DocMagic Supports interfaces & data mapping translation to majority of LOS in industry today e nabled closing document package along with SMARTDoc enote

13 Electronic Data & Document Verification Service Ensuring a complete, current, compliant data & document process eclosing Clients Correspondent Originators/Sellers Lender LOS Ellie Mae Collaborative Cloud eclosed Don t paper out to ensure data and document integrity & compliance Borrower Buyer Title /Closing Agent Borrower and title agent invited into eclosing room to esign and eclose

14 Electronic Data & Document Verification Service Ensuring a complete, current, compliant data & document process edelivery Collaborative Cloud eclosed Once last signature applied automatically is eregistered with MERS and sent to investor edelivered & funded within seconds Dovenmuehle Mortgage (Servicing) esigned Tamper Sealed

15 emortgage Process Flow

16 ewarehouse Process Flow

17 Getting Started Tim Anderson, DocMagic Simon Moir, eoriginal 17 17

18 Getting Started with DocMagic Need MERS Org ID # LOS needs data field to identify document package type, (emortgage) Once identified all documents are auto e nabled for esign & enotary Qualifying Questions. Do you: Only originate and sell serviced release Originate and retain Self fund or use warehouse credit line Who do you primarily sell to If to Fannie or Freddie direct will need to fill out seller questionnaire to get approved Who is going to do the closing? enotary set-up & training 18

19 Getting Started with eoriginal GSE emortgage Lender Approval Lender Questionnaire and Approved Technology Provider (enote/eclosing/evault) Compatible Document Vendor (document tagging, Smart Doc generation) emortgage Ecosystem Alignment Lender, Borrower, Settlement Agent (w/ enotary & erecording capabilities) Warehouse Lenders and Investors MERS eregistry (Register, edeliver, Transfer Control and Location)

20 Live eclosing Demonstrations Jason Streit, Worldwide Notary/DocMagic Simon Moir, eoriginal 20 20

21 erecording Process Bob Grohol, Sales Executive erecording Partners Network 21 21

22 Overview of erecording for Submitters erecording since Today jurisdictions & 77% population. Moving very quickly. Why? CFPB/TRID. PRIA is on-board too! erecording Best Practices for Counties. CFPB/TRID Informational Paper.

23 What is erecording Anyway? erecording is a method of delivering and returning documents electronically from the submitter to the recorder The actual recording is still done by the Jurisdiction using their Land Records Management System It s still recording, only the medium & delivery mechanism has changed Very fast. Reliable. Secure.

24 Where does erecording fit in? Post-closing. Documents executed. Ready to record.

25 Manual Submitter Process Doc Prep Check for Recording Cut Documents delivered to County via FedEx or Runner County Processes Document Recorded Document returned from County Document Processed

26 erecording Submitter Process Doc Prep Documents Scanned Electronically sent to erecording Vendor Recorded Image returned from County

27 Manual Rejection Process Doc Prep Check for Recording Cut Documents delivered to County via FedEx or Runner County Processes Document Rejected Document returned from County Document Fixed

28 erecording Rejection Process Document Fixed Documents Scanned Electronically sent to erec Vendor Rejected Image returned from County

29 erecording Process Flow Scan the completed documents. Login to epn s secure ecourier website. Choose state & county, & enter the county required information. Upload documents to the erecording site. Document is securely delivered electronically to the county. Document is recorded/rejected by a person at the county. If recorded, document is stamped by Recorder & returned electronically to the Submitter.

30 ecourier - Home

31 ecourier - Main

32 ecourier New Package

33 ecourier New Package

34 ecourier Add Docs & Parties

35 ecourier Package Ready!

36 ecourier Package Submitted

37 ecourier Package Returned

38 How is the Money handled? With erecording, money is taken care of after business hours the day of recording. epn pays each county recording fees and epn collects recording fees from each Submitter nightly. Everyone gets detailed reports. Submission fee are typically paid monthly to epn.

39 What About Rejections? You have the ability to submit documents in groups Just like paper docs, if one document in a package is rejected, the whole package comes back as rejected Rejected documents are returned to submitter There is no delivery charge for a rejected document! Documents can be corrected and resubmitted within minutes

40 BREAK 10 MINUTES 40 40

41 Identifying and Addressing Obstacles Steven Brown Investors Title Esther Fernandez Brady & Kosofsky 41 41

42 A Look at NC E- recordings 2014 e-record Update In house 1 2 One Day Turn Time Two Day Turn Time

43 North Carolina 2016 E- Recording

44 Where the Closings are taking place

45 Awareness/Participation campaign Group Discussion 45 45

46 Media Campaign Group Discussion 46 46

47 Questions/Discussion/Next Steps Group Discussion 47 47

48 Closing Remarks & Adjournment Ozie Stallworth, enotarization Director N.C. Secretary of State 48 48

49 49 References Court Wins Set Important Precedent for Paperless Mortgages Nationalmortgagenews.com/news/compliance-regulation/court-wins-set

50 Presenter Contact Information Matt Hunoval Founder Minuet Lane, Suite 104A Charlotte, NC p: f: Tim M. Anderson Director of eservices DocMagic, Inc West 213th Street Torrance, CA Main: (800) x 6370 Cell: (904) tim@docmagic.com Ozie Stallworth Director of Electronic Notarization and Notary Enforcement NC Department of the Secretary of State Phone: ostallworth@sosnc.gov 50 Bob Grohol epn bob@goepn.com Simon Moir General Manager, Digital Mortgage eorignal smoir@eoriginal.com Jason Streit President World Wide Notary jstreit@wwnotary.com J. Kenneth Sykes President North State Bank Mortgage ksykes@northstatebankmortgage.com Esther Fernandez Executive Director of Operations and Client Relations Brady & Kosofsky efernandes@bandklaw.com Stephen B. Brown Vice President Investors Title Insurance Company 121 North Columbia Street, Chapel Hill, NC Office (919) sbrown@invtitle.com