This CLE course will examine the legality of electronic signatures and digital documents generally, as well as recent developments in using eNotes and other electronic mortgage loan documentation. The panel will discuss the Electronic Signatures in Global and National Commerce (ESIGN) Act, Uniform Electronic Transactions Act (UETA), the MERS registry, and legal and practical issues, including the authentication of electronic signatures, transferability, and the admissibility of eNotes in litigation.
ENotes and other electronic loan documentation are now routine in residential mortgage lending and have gained more acceptance in commercial real estate lending. The industry is gradually moving toward the digital transformation of the mortgage lifecycle: application, closing, documentation, notarization, recording, and securitization.
ESIGN and UETA establish the legality of electronic records and signatures. MERS provides a platform for filing and tracking transfers of "control" of real estate notes from one party to another. However, electronic documents must comply with the UCC and recording statutes (which might require a paper original of the mortgage) and other applicable state laws.
If litigation ensues surrounding electronic loan documents, counsel must understand and address enforceability, authentication, and admissibility issues of electronic communications and e-signatures.
Listen as our authoritative panel discusses the use of eNotes and electronic loan documentation in commercial and residential mortgage lending. The program will also examine legal and practical issues regarding transferability, UCC perfection, the authentication of electronic signatures, and the admissibility of electronic communications and e-signatures in litigation.
