What are ENotes?

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OneNotary Team

April 29, 2021


If you are thinking about looking for a home, there is a good chance you turn to the internet for help. For example, you may take a look at some homes that have been listed online. Then, you probably also use the internet to take a look at what current mortgage rates are. Even though you do a lot of the heavy lifting using the internet when you are looking for a new home, do you complete the process online? While a lot of people look for homes online, very few people actually close in the digital world. That is where eNotes can be helpful. What are eNotes, and what do you need to know about this process?

What Is an eNote in Digital Mortgage Processes?

An eNote is an electronic promissory note. This is an electronic note that contains the same information you would have if you look at a traditional paper promissory note. There are several key pieces of information that have to be included in this eNote. They include:

  • You need to have a specific property address
  • There must be a title agent address
  • The amount of the loan has to be included as well
  • The term of the loan should also be included
  • The percentages should also be included

Traditionally, this is a document that is handled using a physical piece of paper. An eNote is simply created, managed, signed, and completed digitally.


What Is the Difference Between eNotes and Promissory Notes?

A lot of people are wondering what the difference is between eNotes and promissory notes. There are numerous types of promissory notes; however, an eNote is one very specific type of note. In general, all eNotes are promissory notes; however, not all promissory notes are eNotes.

For example, once you complete your closing electronically, your eNote is sealed electronically so that it cannot be tampered with. Then, it is registered underneath a specific organization that will govern the future outdoor electronic know it. If someone tries to change your note, there will be a digital paper trail. Therefore, the note cannot be lost. All the changes to the note will be registered.

As electronic notes continue to become more popular, more and more promissory notes are going to be handled digitally. Therefore, it is critical for everyone to understand exactly how eNotes are created, generated, managed, and completed.

eNote and eVault

After your eNote has been generated, it has to be protected and managed appropriately. That is where the eVault system comes in handy. This type of vault is a specialized document storage system. In a lot of situations, it acts as a data warehouse. It is the job of this vault to manage all electronic notes, controlling their transfer across different vaults. In the event you need to take a look at the version history, change history, or audit history of your electronic note, you will need to head to the eVault. This vault will also help you manage your closing process efficiently. There are other security measures that could be included in this electronic vault. This could include watermarks, virtual glass, paper conversions, and more.

If you need to sell your electronic note on the secondary market, this will also be handled using your eVault. There are three separate data points that are critical when it comes to storing and transferring your e-notes. These include the control of the note, the location of the note, and the individual servicer of each month.

The Benefits of eNotes

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There are several benefits of using eNotes. These include:

  • The process will be streamlined, as it is faster to get everything handled electronically.
  • Because this process is handled electronically, there are fewer overhead expenses, which could allow you to save money.
  • Your electronic note is going to be secured, ensuring that no one is able to edit the document without being tracked.
  • Because you can handle this process electronically, you may have access to additional lenders or security systems, which could help you find a better option for you.
  • If there are specific requirements that have to be met, the turnaround time is fast, allowing changes to be made easily.

These are just a few of the many benefits of using electronic notes.

How To Generate an eNote

In order for you to generate an eNote, there are several steps you need to follow. These include:

  • First, you need to use a seed file, which you might be able to generate using OneNotary.
  • Then, you need to fill out this file appropriately and submitted using a secure web form, a secure email, or through an API if you want to submit it using OneNotary.
  • If you are unsure of exactly what program you need to use to generate this seed file, OneNotary can help you.
  • If you want to pull data directly out of your file in order to fill out your eNote, you might want to work with your IT department.
  • As soon as the signer’s loan has been approved, documents can be prepared. OneNotary can help you create the transaction using the document package.
  • Finally, the fire will be distributed to your lender and can be stored in the eVault and MERS system.

This is not something you have to go through by yourself. Trained professionals can help you along the way.

The eNote Ecosystem

In order to generate an eNote, numerous people have to work together in perfect harmony. This is no different from generating a physical promissory note; however, when you are generating eNotes, the process can be a bit more challenging because people are not physically sitting next to each other.

There are three separate parties that have to work together in order to generate a proper eNote. These include your closing platform, such as OneNotary, your eVault platform, and the MERS system, which is the Mortgage Electronic Registration System. As you go through the digital closing process, OneNotary will be responsible for managing your document packet. Then, when the transaction is finished, your package will be sent to the eVault for safekeeping. MERS is responsible for the security of the electronic note, recording any changes that might take place.

Frequently Asked Questions About E-Notes

A few common questions people have about eNotes include:

What exactly are e-notes?

An eNote is simply an electronic note. Think of this as a promissory note that has been generated in the digital world. Instead of using a physical piece of paper, your note is being generated electronically.

Is it possible for me to handle my closing completely electronically or digitally?

Yes, instead of having to go to a physical location, you may be able to handle your closing process electronically. You need to use the right platform if you want to go through this process virtually.

Is it possible for me to save money using eNotes?

Yes, you can save money if you decide to use eNotes instead of traditional notes. Make sure you get all pricing information upfront.

What are the benefits of using eNotes instead of traditional promissory notes?

Because you are going through the process virtually, you may be able to complete it more quickly. Furthermore, you may have access to more options, allowing you to save money.

Understand the Significance of eNotes During the Closing Process

Indian, a lot of people are looking for a way to expedite the mortgage process. If you want to make this process easier on yourself, you may want to explore the option of using electronic promissory notes. That is exactly where eNotes can be helpful. There are plenty of platforms out there that could help you go through this process efficiently. If you are looking for professional assistance during this proceeding, you might want to take a closer look at OneNotary.