MISMO®, ESRA and ALTA Release White Paper Confirming the Legality of eNotes
|November 24, 2008|
MISMO, the not-for-profit data standards subsidiary of the Mortgage Bankers Association (MBA), today released a joint white paper along with the Electronic Signature and Records Association (ESRA) and the American Land Title Association (ALTA), entitled Case Closed: eNotes Are Legal -- An Analysis of eNote Enforceability Nationwide. The white paper addresses the legality of electronically-signed promissory notes, commonly referred to as eNotes, which are central to the eMortgage process.
Although eMortgages have become more prevalent in the mortgage banking industry, confusion has remained as to whether eNotes are legal in all jurisdictions. The white paper addresses this common question while also identifying important logistical implementation issues.
“By creating a paperless mortgage lending environment through the use of eMortgages, lenders reduce costs, improve compliance and create efficiencies,” said Harry Gardner, MBA’s Vice President of Industry Technology and President of MISMO. “MBA, in concert with ESRA and ALTA, was able to provide a framework for lenders who are looking to increase their eMortgage business. Our hope is that the mortgage banking industry utilizes this document to advance any legal, regulatory and operational issues in relation to the use of electronic signatures and records.”
The key topics outlined in the white paper include: