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TRANSCRIPT
FlashClose eCloseEligibility & Workflow Training for Settlement Agents
Agenda
• eClose overview• What is FlashClose eClose?
• How does eClose work?
• Is eClose secure?
• What is eligible / where is eClose available?
• eClose process & workflow• eClose workflow steps
• eClose notifications
• FAQs / Best Practice
• eClose next steps• Creating your Notarize Account
eClose Overview
What is FlashClose – eClose?
GR is able to offer Remote Online Notary (RON) eClose. The Borrower meets with online Notary and electronically signs their entire package (loan and title docs) via secure webchat. The borrower can literally close from anywhere in the world!
Key differences:• FlashClose Hybrid: Speed up the process! Allows borrower to review and sign most of docs ahead; shortens closing appt.• FlashClose eClose: Skip the closing table! Gives borrower the convenience to complete the closing online, where they want.
What’s the benefit of eClosing? • Convenience! Borrower can skip the closing table and complete online closing via webchat on their closing day. • Notaries are available on demand 24 hours/day Monday – Friday (some Saturday availability). • Accuracy - All docs are electronically signed so there is less opportunity for error or missed signatures on files. • Streamlined - No wet signed docs, less confusion working with Title and Settlement Agents.
To participate in eClose with Guaranteed Rate – each title/settlement agent company must to complete the following: 1. Confirm with Title UW they will insure eNote transactions2. Setup account with Notarize 3. Understand the GR eClose workflow (no technology, software needed)
Communication is paramount – everybody is learning eClose process and options!
How does eClose work?
Guaranteed Rate • Identify eligible loans• Confirm with parties involved - borrower, title,
agents (if purchase) • GR Closer sends doc package to Notarize
Notarize• Receive GR order & loan docs• Collects title docs • Completes signature tagging• Sends transaction to signer
eClose prep eClosing(scheduled closing date)
Post eClose activity
Guaranteed Rate• Access completed doc package• QA / QC Review• Transfer eNote to warehouse/investor
Notarize • Signed docs tamper sealed• eNote registered with MERS• Control of eNote transferred to GR eVault• Full doc package available for download
Notarize Borrower online session with remote notary
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Is eClose secure?
Several protocols ensure security of transaction and minimize opportunity for real estate fraud.
1. Credential analysis – Photo Id is analyzed by automated software for fake data/images
2. Knowledge-Based Authentication (KBA) - 2 min to answer questions based on personal information (dynamic, not static)• Signer must have SSN • Recent US Address
3. Notary review – comparison of Photo ID to signer on the call
4. Video recording – every closing is recorded and retained for up to 7yrs (longer if needed)
What is eligible / Where can we do eClose?
GR is able to eClose in many states. Loan must meet all eNote eligibility criteria to be considered:
✓ Property eligibility: located in state and county accepting eRecording transactions
✓ GR Eligibility: meets all GR loan & investor guidelines
✓ Title Eligibility: Closing with eligible Settlement company; Title UW that insures eNotes
• GR Requires each settlement agent to confirm/ verify they can provide title insurance on all eNote transactions.
• Title companies must reach out to their Title UWs for the latest guidance and instructions regarding eNote eligibility
eClose process & workflow
eClose workflow (Prior to Closing)
GR confirms
loan is eClose
Notarize requests title docs from settlement
agent
Notarize preps, tags and sends docs to borrower for
completion(settlement agent notified
when sent)
Settlement agent/GR
collaborate on closing figures
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GR Closer places eClose order with Notarize
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5
Prior to Closing (2-3 days prior to scheduled closing date)1. Loan team will confirm loan is eClose vs (FlashClose hybrid or standard wet sign)
• Also look for email communication – Hybrid vs. eClose
2. Settlement agent works with GR closer to prepare figures for closing (2-3 days in advance of scheduled closing date)• Confirm $125 eClose notary fee is reflected on the CD
3. File is ready for closing, GR Closer will initiate and place an eClose order with Notarize
4. Notarize closing operations will contact settlement (email contact on file) after the order has been placed to request title documents. Make sure you are looking for an email from [email protected] with the loan number and last name of the signer included.
5. Notarize will prepare all documents, tag them with signature flags and send to borrowers for completion. You will receive anautomatic notification from [email protected] when the transaction is sent to the borrowers.
4
eClose workflow (Prior to Closing)
Heads up notification to title – file will be an eClose• Confirm and discuss with loan team• Mobile notary will not be needed for eClose
Communications are sent to the file contact list (email address) – individual person or central mailbox
eClose workflow (Day of Closing)
Borrower completes
signing with online
Notary
Title agent notified upon completion
21Title agent accessed
completed documents via email
link
3
1. Borrowers will log on to Notarize to complete their signing, and meet with a Notary*.
2. Title agent receives an email notification when your customer has completed their signing.
3. Title agent can access the completed documents from the link provided in the email, or you can log in to your Notarize for Title Agents account and access them from your dashboard.
*Indiana & Maryland – Title agent participation is available
eClose notifications – Day of Closing
Email notifications keep the team aware on Closing Date
Best Practices for eClosings
• Communicate early and often with your GR Closer – understand what files will be eClose vs. (Hybrid or wet sign)
• Balance the final CD as quickly as possible so that it can be added to the eSign package. Turn times are high so the earlier files are prepared the smoother the process.
• Note: Purchase files must be ready at least 3 days prior to close
• Coordinate ahead with borrower if there will be funds due at closing – overnight check or send wire instructions
• Keep an eye out for notifications that the documents have changed. If the GR Closer has to redraw the package you will get an email with the list of changes.
Communication is paramount – everybody is learning eClose process and options!
Pitfalls & Issues - eClose FAQs1. Settlement notifications email address: Which email will get the notifications from Notarize?
Answer: Emails and communication is sent to email address on loan file (either general email address or directly to the Settlement Agent). Work with GR loan team and Closer to confirm the best communication for your company agents
2. eSign Responsibilities: Are there any eSign requirements for the settlement agent? Answer: Yes – there are some docs the settlement agents will sign and return directly to the Closer. Please follow Closing instructions for information.
3. Actions for completed e-signed documents: What does the settlement agent do with the eSign copies? Answer: No action. Loan docs are automatically return to GR once notary session is complete. Title needs to complete funding and settlement actions once they receive their docs back.
4. Closing Appointment: What time is the appointment? What if Borrower doesn’t complete eSign portion?Answer: With eClose there is NO scheduled appointment. Borrowers must understand they will connect with notary when they initiate the process – via email link. Borrower has 24hours to sign, they must complete signing on the schedule closing date.
5. Borrower copies: What if the Borrower wants a copy or printout of their documents?Answer: That’s OK! Borrowers can access their docs prior to review and & post-closing to download or print their loan package
eSign FAQs – Settlement Agents1. What type of technology do I need?
• No special software or technology is needed at this time. Stay alert for the email request from Notarize Closing operations to provide title docs for transaction
2. What if funds are due at closing? • Coordinate and communicate ahead of closing. Arrange for borrower to wire or overnight check for funds prior to closing or day of – title agent
preference
3. When do I need to schedule a in-person notary?• Hybrid closing requires an in-person notary to complete the wet sign docs. Please watch for email communication from GR on type of closing (Hybrid
vs. eClose) and communicate with close and team.
4. My state hasn’t passed RON Laws yet? • That’s OK – GR uses notaries licensed in VA and TX to complete online closings. In state notaries are not required to complete RON eClose. As more
state laws are passed Notarize will work to add and expand notaries available to complete online closings
5. I am not in an eRecording county? • eClose is not available in counties that do not eRecord. All files will be pre-screened to determine if eRecording is available. Stay close to updates
from local county offices on eRecording changes.
6. Are there fees to eClose? • The notary fee for eClose is $125 and should be listed on the CD. Settlement will need to remit payment on invoice to Notarize 2-3 days after closing.
eClose next steps
Creating your Notarize AccounteClose Pilot goals/objectives:
1. Conduct eClose in as many states as possible
2. Establish consistency & confidence in
eClosing RON process
3. Ensure positive borrower experience
4. Collect VP feedback and input on eClose
process:
• Eligibility & Approval process
• Borrower prep & setting expectations
• Overall eClose experience
5. Establish GR as leading provider offering
eClose
1. Go to www.rate.com/eClose to join Notarize for Title Agents. Please enter your first
and last name, email address, and create a strong password.
• Tip: Make one account for your office – now for every person
2. You'll see an on-screen modal with a couple of pointers to certain features within
your account. On the last page, you'll be prompted to enter your organization name,
telephone number, expected monthly volume, and office address.
3. Finalize your account settings by hovering over your name in the top right corner,
where you can access the Account tab from the drop-down menu. Please be sure to:
• Verify your email address. You should see a red banner at the top of the page
with instructions to verify your account. An email will be sent to your inbox
with a link to verify.
• Payment options. Client (GR) will pay for the completed transaction. We have
an agreed contract with Notarize to cover the cost of the notary service
• Select Smart Routing Details. This includes states of operation, title
underwriters, and eRecording software to determine the property's eligibility
for an online closing.
*Be sure to save changes at the bottom of each section.
Key terms / Definitions
• E-mortgage: A mortgage loan where the critical loan documentation, specifically the promissory note (e-note), is created electronically, executed electronically, transferred electronically and ultimately stored electronically. This often includes a wet-signed security instrument.
• E-note: An e-note is another term for an e-mortgage. An e-closing produces an e-mortgage if the promissory note is signed electronically.
• E-closing: 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.
• E-vault: Provides the ability to accept and receive and securely store electronic mortgage documents post-closing and prior to investor delivery.
• Hybrid closing: E-closing process where 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.
• Remote Notary: A legally commissioned notary public who is authorized to conduct notarizations over the internet via digital tools and a live audio video call. All notaries, no matter how they perform their service, must watch as someone signs a document.
• Electronic Notarization: Electronic notarization is a process whereby a notary affixes an electronic signature and notary seal (where required) using a secure Public key to an electronic document. Some states issue an e-notary commission in addition to a traditional notary commission.
• Smart Doc: An electronic document created to conform to a specification standardized by MISMO. A SMART Doc can lock together data and presentation in such a way that it can be system-validated to guarantee the integrity of the document. SMART is an acronym meant to explain the purpose of the document standard – to make documents Securable, Manageable, Archivable, Retrievable, and Transferable.
