More Than Half of E-Notes on MERS E-Registry Closed Via Pavaso in 2018


More than half of all e-note closings registered on the MERS e-registry so far in 2018 have been closed through Pavaso’s Digital Close Enterprise solution, which enables all parties involved in real estate transactions to communicate, securely exchange data and create fully electronic mortgages.

According to MERSCORP Holdings Inc., which owns and manages the MERS e-registry, the national mortgage registry and legal system of record for identifying the controller (holder) and location (custodian) for the authoritative copy of registered e-notes, more than 3,000 e-notes have been registered to the MERS e-registry year to date in 2018.

Pavaso indicates that more than half of these have been closed through Digital Close Enterprise. The platform gives lenders all the tools needed to electronically deliver, sign, notarize and store the complete package of loan documents online, including the ability to execute e-closings, generate a SMARTNote e-note and automatically register e-notes with MERS.

“These numbers clearly establish Pavaso as a leader in eNote execution and delivery,” says Mark McElroy, president and CEO of Pavaso, in a release. “We believe more lenders are choosing Pavaso to create and execute e-notes because of its unique ability to incorporate all stakeholders in a single portal, including title agents. No other technology in our industry does that.”

According to the Mortgage Bankers Association, mortgage production costs reached an all-time high of $8,957 in the first quarter of 2018, an increase of nearly $500 from the previous quarter. Using Digital Close Enterprise, lenders can execute and submit e-notes to the MERS e-registry, resulting in significant cost savings by eliminating paper, printing costs and time, and the expense of shipping paper documents back and forth to borrowers and title companies.

Digital Close Enterprise also supports the ability for the lender to electronically perform a post-close audit of the file and eDeliver the loan package and collateral to the investor, ultimately saving fraud and risk mitigation costs as well.

According to McElroy, the Pavaso platform has also been shown to decrease costs by streamlining workflows, since the platform allows all parties – including lenders, title companies, borrowers and the borrower’s agent – to collaborate together in one central location. By using Pavaso, closing times can be shortened from 60 minutes to 15 minutes or less, which increases the speed to funding.

“Pavaso helps lenders save money by creating greater investor liquidity, thereby reducing warehouse turn times,” McElroy says. “Plus, Digital Close Enterprise’s automated auditing capabilities and reports enable all parties to eliminate errors and maintain compliance with all applicable regulations and investor requirements. There’s no other platform that makes digital closings so safe and easy.”

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