General eClosing Questions
What is an eClosing?
An eClosing is the act of closing a real estate transaction electronically. This occurs through a secure digital environment where some or all the closing documents are accessed and executed electronically.
Why should I choose to complete eClosings?
There are many benefits when completing an eClosing, including:
- Enhanced customer experience
- Reduced cost, risk and time to close
- Standardized closings
- Improved accuracy and efficiency
- Close with confidence
- Expedited funding
To learn more regarding the additional benefits of completing eClosings with Pavaso, lenders, title companies and real estate attorneys you may visit the following pages:
What are the types of closings and eClosings?
Currently, the industry utilizes five ways to close:
- Traditional Closing
Parties appear in person and wet sign and notarize printed documents.
- Hybrid eClosing
Parties appear in person to eSign most documents, wet sign certain printed documents and notarize or eNotarize* as permitted.
- Full eClosing
Parties appear in person to eSign and eNotarize all documents.
- Remote Online eClosing
Parties attend the closing remotely using two-way audio-video technology to eSign and remotely eNotarize all or most documents.
- Remote Traditional Closing
Currently available by Executive Order only, parties attend the closing remotely using two-way audio-video technology, where the notary observes the wet signing of the documents. The wet-signed documents are returned to the notary for them to complete the certification and execution and affixation of the official notary stamp or seal.
Visit our eClosing 101: Closing & Notarization Types Explained page, to learn more.
What are the types of notarizations and eNotarizations?
There are currently four types of notarizations and eNotarizations available:
- Traditional Wet Ink Notarization (TWIN)
Documents are wet ink notarized, in the presence of the notary.
- In-Person Electronic Notarization (IPEN)*
Notarizing documents electronically with an electronic seal using an internet-enabled device.
- Remote Online Notarization (RON)*
Electronic notarization with participation from separate physical locations using two-way audio-video technology.
- Remote Ink-Sign Notarization (RIN)**
Documents are printed and wet ink signed while notary observes via two-way, audio video technology. Those documents are delivered to the notary for certification, execution and affixation of the official notary stamp or seal.
Visit our eClosing 101: Closing & Notarization Types Explained page, to learn more.
Which closing and notarization types are supported on the Pavaso Platform?
Pavaso is a full-service closing platform that supports all real estate closing options, including traditional, fully paperless and hybrid eClosings, which may utilize in-person eNotarization (IPEN), remote online notarization (RON) and remote ink-signed notarization (RIN) solutions. With Pavaso you also have the flexibility to perform contact-free eClosings and change the type of closing at settlement when needed.
Each state in the U.S. has specific laws and regulations regarding eRecording, eNotary, RON, RIN, and eSignatures. It is at the lender and title’s discretion on whether they will use a full eClosing.
What contact-free closing options does Pavaso support?
What is an eNote?
An electronic representation of a promissory note that is created based on the MISMO® tamper-evident SMART Doc® standard and is executed during an eClosing.
What is an eVault?
An electronic storage facility for executed eNotes.
What is the difference between eClosings and eMortgages?
An eMortgage is produced when an eNote is created and executed during an eClosing process, then transferred and stored electronically. eClosings result in eMortgages only if the promissory note is in a smart document format and signed electronically.
The MISMO eMortgage Guidelines and Recommendations are available at mismo.org.
What is the difference between eClosing and eSigning?
eSign simply replaces a wet signature with a digital signature and is just one component of an eClosing. eClosings encompass the entire Pre-Closing, Closing and Post-Closing phases of the transaction.
Visit our eClosing 201: Understanding eClosing as a Process page to learn more.
Can eNotes be eSigned on the Pavaso Platform and deposited into an eVault?
eNotes can be digitally signed and tamper-sealed on the Pavaso platform and be deposited into an eVault. We currently integrate with a number of eVault providers and work on new integrations as needed to transfer the digitally signed tamper-sealed eNote and other appropriate documents to be securely stored.
Do all states have laws to support the use of eNotes and eSignatures?
Both federal and state legislation form the legal basis for eNotes and eSignatures. In 2000, Congress passed the Electronic Signatures in Global and National Commerce Act (ESIGN). All 50 states have either adopted laws modeled on the Uniform Electronic Transactions Act (UETA) or have their own statutes regarding electronic signatures. Please consult your legal advisor for more details about these laws.
Do the GSE’s accept home loans completed through an eClosing?
Yes. Fannie Mae and Freddie Mac have long-accepted electronic signatures on all or most closing documents. There might be additional requirements and approval processes when seeking to deliver, service or sell an eMortgage.
Are investors buying loans completed through an eClosing process?
The list of investors who are purchasing loans completed through an eClosing process is growing quickly.
Is implementing eClosings an “all or nothing” proposition?
No. We work with you to help you choose the approach that works best for your company. We can take it one step at a time, beginning with hybrid eClosings or any other type of closing you prefer and create a bridge to move your business to full eNotes when applicable.
Pavaso eClosing Process Questions
What type of transactions are supported on the Pavaso platform?
Pavaso support all real estate closing options* for any real estate loan type, seller side and cash purchase transactions.
As a settlement provider, can I use the Pavaso Platform without a lender?
Yes, you do not need a lender to start completing eClosings with Pavaso. As a title company or a real estate attorney firm, you can start with cash and/or seller side transactions. Starting this way benefits you, as you will familiarize yourself with the eClosing process and can be better prepared to support your lender affiliates as they begin to implement eClosings themselves.
How do documents enter Pavaso’s secure system?
You will be able to leverage existing integrations or establish new ones with a lender’s doc prep provider, a title production system, or documents can be added by a simple upload.
Are both title and lender documents going to be in one place when using Pavaso? As a settlement provider, do I still have to go to the lenders encrypted site?
Initial or updated title and lender documents sent to Pavaso via an integration or manual upload will be available in one place. Settlement providers will not need to log into another system to access documents unless they are instructed to do so by the lender.
How are digital signature, initials and other tags available for signers to complete prior to or at the signing session?
Signature, initials and other tags are available either via an integration or tag document templates specific to your company. If the tag capability is not available via an integration, during implementation we help you create templates for your company to automate the application of tags when documents are sent or uploaded into Pavaso. However, we suggest that you review the applied tags on the documents before inviting the signers to access them to ensure that modifications are not required. If any of the tags are missing, you can quickly add them with the InstaTag toolbar.
As a settlement provider, do I need to print and wet sign any documents at closing?
Pavaso supports all closing types, including hybrid eClosings. Whether the documents will need to be printed and wet signed, depends on the lender’s and/or title’s process and requirements, applicable, laws, regulations, and executive orders applicable to each signing session.
As a settlement provider, do I need to print out the closing package when the closing is over?
The executed closing package will be saved on the Pavaso Platform and be accessible by all permissible parties in the transaction. It is not required to print the closing package, however there might be instances that a closing package may need to be printed to complete post-closing actions.
Can the signers review their closing documents before the signing session?
Yes. The signers will be invited to create an account on Pavaso to review their closing documents prior the signing session.
What happens if the signers do not review their documents ahead of closing?
If the signers do not review their documents ahead of the closing, they can review the documents at the closing table with the closer or notary. The Pavaso platform does not require signers to review every document; however, it is required that they finalize their pre-closing document review, either by reviewing most or all of the documents or skipping the review, if they desire.
If I have two or more signers in the transaction, does each signer need to login with their own account and review the documents?
Yes. The Pavaso system requires each party associated with a transaction to login to their own account to complete their pre-closing document review prior to closing or they can skip it and review documents at the closing table.
Can more than one signer, e.g., a couple, review their documents at the same time on the same device prior to the signing session?
Yes, the same device can be used to complete the pre-closing document review; however, each signer needs to login to their own account to review their documents.
Can more than one signer use the same compatible device to participate in a RON signing session?
If more than one signer is required to participate in the remote signing, all signers can enter the signing session at the same time. Each signer can use their own laptop, desktop, or the IOS 11+ RON app for the Apple ® iPad ® or more than one person can use the same compatible device to enter and complete the RON signing during the same session. When the same device is used, the signers should pay attention to the names appearing on the screen or the pop-ups and follow the notary’s instructions to complete the knowledge-based authentication (KBA), ID validation and all digital tasks required by them.
Will the signers have access to the documents after the settlement?
Yes. The signers will have the ability to access, download or print the executed documents after the title company, attorney firm and/or lender have finished the closing.
Can the signers opt out of an eClosing?
Yes. The signers have the ability to opt-out from both the electronic delivery and eClosing of their transaction.
Does Pavaso support the participation of in-person or remote witnesses?
Yes. Pavaso has functionality that allows for in-person or remote witnesses to participate in a signing session, as required.
What level of security and data privacy does Pavaso provide?
Security measures incorporate industry best practices, including multifactor authentication and stringent-yet-simple user procedures. We understand and respect the importance of your customers’ data and privacy. Pavaso takes data privacy seriously and we do NOT sell any data to third parties under any circumstances. For more details, please see our security page.
Implementation & Training Questions
Who can collaborate on the Pavaso Platform?
Lenders, title companies, real estate attorneys, and/or signing agencies can collaborate on Pavaso to provide eClosings to their customers.
How do I become a Pavaso customer?
Select from the options below and one of our representatives will contact you to answer your questions, coordinate the contract, implementation and training:
Pavaso does not offer its platform directly to independent mobile notaries who are not associated with a title company or signing agency already working with Pavaso.
How long does it take to complete implementation with Pavaso?
Implementation with Pavaso is not an IT project. Pavaso is a cloud-based software with easy setup and little to no additional technology investment requirement(s)+. Training is provided online through webinars that are live or pre-recorded and completed at your own pace. The timeframe for implementation depends on your specific needs and what types of eClosings you use.
What are the equipment and system requirements to perform eClosings with Pavaso?
Please visit our system requirements page for complete details.
Are integrations with loan origination systems (LOS), title production systems (TPS), doc prep providers, and eVault providers available?
We have many integrations established with doc prep providers, LOS, TPS, and eVault providers that cover a wide range of needs. As a true full-service eClosing platform, we are continually expanding our strategic integrations to deliver process improvements throughout application, pre-closing, closing and post-closing.
Can the executed documents be set to pass back to an LOS, TPS, or doc prep provider’s system?
Yes. We work with you to leverage existing pass back integrations or establish new ones to help you take full advantage of the eClosing process.
What type of training options are available to lender, title companies and real estate attorney firms?
Training is provided online in an at your own pace or live webinar formats; no on-site visit or set up is required. We work with you to prepare your team to complete signings for each eClosing option you request.
How are mobile notaries working with a signing agency or title company trained and getting Pavaso Certified?
Mobile notaries working with a signing agency or title company go through a separate training than a title company or attorney firm employee to become Pavaso Certified. Visit our notaries page to learn more and start your training.
* Due to platform capabilities, state law or regulation, or all, electronic notarization and remote online notarization are not available in all areas.
** Users should consult their title insurance underwriter, if applicable, laws, regulations and Executive Orders applicable to each signing session. Users are solely responsible for all steps necessary to ascertain, determine, meet and verify compliance with all applicable orders, laws, regulations, rules and requirements governing any notarial or other execution of writings facilitated in whole or part through Pavaso’s Essential Notary™ or any other Pavaso technology.
+ Required minimum investment: Microsoft 8.1+ or macOS X 10.11+ operating system; internet connection; two-way audio-visual technology for RON closing.
MISMO® and SMART Doc® are trademarks of Mortgage Industry Standards Maintenance Organization, Inc.