American Land Title Association
Home  >  News Room
News Room


SoftPro is the nation's leading provider of Real Estate Closing and Title Insurance software


North American Title Insurance Company is a seasoned title insurance underwriter that has been helping customers achieve the American dream of homeownership for more than 50 years. In the past several years, we have become known as the “underwriter next door,� because our associates are always easy to reach and our processes are, at all times, quick and straightforward. Our agency application process is fast and transparent for qualified agents. NATIC offers a one-hour underwriting response guarantee that is unparallelled in our industry. In addition, we value our agents based on their title industry knowledge and experience, not just on profits alone.


Technology News

MBA White Paper Examines Legal Underpinnings Of E-Mortgages In The Warehouse Lending

October 24, 2007

   Related Information
MBA White Paper On E-Mortgages and Warehouse Lending
Security Interests in Transferable Records Evidencing Residential Mortgage Lending Transactions and the Rights of Warehouse Lenders: An Analysis and Proposal [pdf]

“This paper provides detailed and relevant legal information and a framework which addresses the key issue of eNote ownership rights in warehouse lending,” said Harry Gardner, MBA’s senior director of industry technology. The MBA’s eMortgage Adoption Task Force (a subgroup of the Residential Technology Steering Committee) has published a new white paper focusing on the warehouse lending process.

The white paper, entitled “Security Interests in Transferable Records Evidencing Residential Mortgage Lending Transactions and the Rights of Warehouse Lenders: An Analysis and Proposal,” examines the legal underpinnings of e-mortgages in the warehouse lending sector under the Uniform Electronic Transaction Act (UETA) and the federal Electronic Signatures in Global and National Commerce Act (ESIGN), both of which lay the legal foundation for the industry’s transition to electronic loan files.

“This paper provides detailed and relevant legal information and a framework which addresses the key issue of eNote ownership rights in warehouse lending,” said Harry Gardner, MBA’s senior director of industry technology.

Because paper notes are usually negotiable instruments, warehouse lenders have protected themselves against unauthorized sales by taking possession of the original notes and delivering them to investors, pending payment, according to the MBA.

The white paper proposes a new strategy that takes advantage of the rights and protections built into UETA and ESIGN to ensure the same rights when funding and transferring electronic notes.

Along with a proposed solution, the paper analyzes the following issues:

  • The special rules associated with negotiable promissory notes;
  • The creation of “transferable records” as an electronic equivalent to negotiable promissory notes under UETA and ESIGN; and
  • The interplay between the UETA, ESIGN and Revised Article 9 of the Uniform Commercial Code (UCC) with respect to transferable records



Print Friendly


How To Find Us:
American Land Title Association
1800 M Street, NW, Suite 300S
Washington, D.C. 20036-5828
P. 202.296.3671 F. 202.223.5843
www.alta.org
service@alta.org
Copyright © 2004-2015 American Land Title Association. All rights reserved.
SecurityMetrics for PCI Compliance, QSA, IDS, Penetration Testing, Forensics, and Vulnerability Assessment