eNotes Are On The Rise In A Big Way

Intercontinental Exchange, an operator of global exchanges and clearing houses and provider of data and listings services, and its subsidiary MERSCORP Holdings, Inc. (“MERS”) announced that the number of eNotes added to the MERS eRegistry during the first quarter of 2019 exceeded the total number of eNotes registered for all of  2018. An electronic note, or eNote, is the functional equivalent of a paper promissory note when created in conformity with eCommerce law requirements, and upon origination, is registered on the MERS eRegistry.


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MERS member institutions, including lenders and originators, registered about 19,000 eNotes in the first quarter of 2019, compared to the 17,000 eNotes registered in all of 2018. In comparison, the number of eNotes registered in the first quarter of 2018 was 375.


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This also increases the number of outstanding active eNotes to 109,000, representing approximately $28 billion of residential mortgages. Rapid growth of eNotes is a key indicator that the residential lending industry continues to drive toward greater digitization of the production process. eNotes are an essential component of a digital mortgage strategy, as they do not require notarization, are enforceable in all 50 states, and easily integrate into an electronic closing process that improves the consumer experience and lowers lenders’ costs.


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The MERS eRegistry is the mortgage industry’s system of record for identifying the Controller (holder) and Location (custodian) of the authoritative copy of an eNote, or who in the traditional paper world of mortgages, is the holder of the original note with the rights to enforce same. This gives consumers, lenders, and investors the confidence to move toward a digital process because authenticity of electronic copies can be verified by an independent third-party.


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“As the industry continues to migrate toward a fully-digital process, the early movers gain efficiencies and can remain most competitive in the market,” said Christopher McEntee, President of ICE Mortgage Services. “We’re excited about the rapid adoption of eNotes, and we expect to see a continual rise as more participants invest in next generation infrastructure.”

To see a complete list of the companies integrated with the MERS® eRegistry, visit mersinc.org/eRegistry.

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