Mid America Mortgage announced it purchased the eNote from North Carolina’s first-ever eMortgage transaction, which closed earlier in May.
The eClosing in May marked the first transaction that was a full eClosing, and according to state officials, it won’t be the last. (North Carolina had another eClosing but it was a hybrid eClosing transaction.)
“We want this to become a regular option for lenders and their customers because of the many advantages eClosing offers versus the slower, traditional paper-based system,” said North Carolina Secretary of State Elaine Marshall. “We stand ready to work with all other North Carolina lenders to get them up to speed on this.”
Upon completion of the closing, Mid America said it was able to purchase the resulting eNote within one business day after receiving the final loan package.
“Given Mid America’s desire to see full eClosings implemented nationwide, we were happy to play a role in this transaction by serving as the investor for this deal,” said Mid America Owner and CEO Jeff Bode. “We launched our eCorrespondent division with the specific intent of converting emerging mortgage bankers to eClosings and purchasing their eNotes.”
And the growth in eClosings hopefully won’t end in North Carolina. Bode added that they’ve been working closely with the Texas Mortgage Bankers Association to move the Texas Remote Notary bill through the state legislature. “We feel confident that eNotarization will soon become legal in the state of Texas,” said Bode.
As far as eClosings go, the industry has been pushing to make them the new normal. In 2016, Radius Financial Group partnered with DocMagic, the MERS loan registry, Fannie Mae and Santander Bank to complete the long-anticipated eMortgage. The group closed six loans in a completely paperless process, utilizing both lender and closing/settlement agent documentation, eNotarization, eWarehousing and eNote acceptance through DocMagic’s eClosing solution.