On June 6, Truliant Federal Credit Union used DocMagic’s home equity line of credit (eHELOC) solution to complete the mortgage industry’s first eHELOC registration with MERS — the national system of record for identifying the controller and location of the authoritative copy of registered eAssets.
This first-ever MERS eRegistration of an eHELOC demonstrated that these assets can be originated, signed, stored and transferred entirely digitally, paving the way for faster closings, improved liquidity and more efficient secondary market transactions, according to company leaders.
“We have a long tradition of industry firsts, including executing the first eClosings in North Carolina and Massachusetts,” Chief eServices Executive Brian Pannell said in a release. “Registering the first-ever eHELOC with MERS reflects our long-standing commitment to our clients and industry partners."
DocMagic’s eHELOC solution provides a fully paperless process from document generation through eSigning to MERS eRegistration and beyond. The solution uses DocMagic’s SmartSAFE eVault technology and MISMO’s SMART Doc format to ensure real-time transparency, legal enforceability and secondary market transfers.
Benefits of eHELOCs include:
- Digitizes the full HELOC lifecycle, eliminating manual paperwork and operational risk;
- Enables eSign and eNotarization for borrowers;
- Supports legally recognized electronic contracts for eNote and security instruments;
- Provides real-time auditability and secure storage via the SmartSAFE eVault; and
- Streamlines investor delivery and servicing transfers
“We recognized home equity as an ideal area to apply our eClosing expertise,” Truliant Senior Vice President of Mortgage Services Beth Eller said. “DocMagic and the North Carolina Secretary of State’s office were instrumental in helping us extend this convenience, efficiency, and security to our members.”
With more than 24 states and Washington, D.C., now adopting UCC Article 12, digital HELOCs are poised for widespread adoption.
North Carolina Secretary of State Elaine Marshall noted, “We’ve worked for years to set the legal framework for North Carolina’s vibrant eCommerce culture, and we’ve been honored to have Truliant and DocMagic as partners in our eClosing initiative for the past five plus years, so we are especially gratified that our state could lead the way in this next step in innovation.”