The benefits of eNotes | Blend
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November 29, 2022 in Mortgage Suite

2 minutes

The benefits of eNotes

Read about how the security, speed, and simplicity of eNotes fit into the digital closing landscape.

Illustration of a stack of paper turning digital on top of a yellow colored backgorund

Online mortgage closings, or eClosings, are becoming more common. All of the steps required for a traditional ink-and-paper closing have digital counterparts during an eClosing.

eNotes are the digital equivalent of a promissory note, are integral to the digital closing process, and are quickly replacing their paper counterparts. But why? With mortgage professionals increasingly turning to digital closing solutions, and consumers expecting the convenience of modern online experiences, the myriad benefits of using eNotes in today’s world are becoming increasingly apparent.

Let’s take a closer look at some of the primary advantages eNotes both lenders and borrowers can enjoy.

Speed, efficiency, and accuracy

Lenders who streamline their mortgage closing process and adopt eNote technology stand to save considerable time and money.

Since eNotes are considered direct-from-source data, lenders can enjoy better data quality. This means spending less time manually executing assignments as well as comparing and staring at documents, consequently leaving more time to focus on higher value activities.

The digitization of documents helps accelerate loan delivery and post-funding processes, which in turn makes it possible for lenders to recognize gains on sale more quickly while reducing hedging expenses. Additionally, automation and increased accuracy leading to fewer quality control findings can result in significant labor savings.

Competitive differentiation

Lending is a competitive industry, but financial institutions can truly differentiate themselves through heightened customer experiences. Today’s consumers are used to convenient, end-to-end processes. And they’ve come to expect the same level of digital service from their financial institutions.

Traditional factors like rates, loan terms, and closing cost fees are still very much relevant for consumers when comparing lenders. But the importance of digital solutions — especially those that empower borrowers and give them the flexibility to close when and how they want — cannot be overstated.

The mortgage industry’s wider acceptance of eNotes in 2021 has made full eClosings with remote online notarization (RON) possible, simultaneously meeting evolving consumer demands and allowing lenders to show their commitment to continual improvement.

Security and peace of mind

As new technologies emerge, so do questions — some of which pertain to security. eNotes are just as, if not more, secure as paper promissory notes. While paper files were traditionally secured by custodians, digital documents like eNotes require specific technology known as eVaults. eNotes can’t be misplaced or physically destroyed, and storing eNotes in an eVault ensures that their integrity is maintained throughout the entire lifecycle.

The mortgage landscape is changing — and at Blend, we believe in the power of transformative technology. eNotes make it possible for lenders to offer a truly end-to-end mortgage experience, which in turn gives customers more of what they want: simplicity, speed, and security.

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