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B8-8-02, Requirements for Creating, Closing, and Correcting eNotes (12/13/2023)

This topic contains additional requirements that are applicable to eNotes, including:

Uniform eNotes

To be eligible for sale to Fannie Mae, eMortgages must be originated using the Uniform Fannie Mae/Freddie Mac form of eNote. This form of eNote is created by modifying the appropriate Fannie Mae/Freddie Mac uniform note in accordance with E-2-07, Description of eNote Header, Footer, and eNote ClauseE-2-07, Description of eNote Header, Footer, and eNote Clause. Such modification includes addition of a specific provision (Section 11, or Section 12 in the case of ARM eNotes) that addresses the electronic nature of the note. This special provision also includes reference to the MERS eRegistry. Immediately upon execution by the borrower, all eNotes must be registered on the MERS eRegistry and contain a valid, unique 18-digit Mortgage Identification Number (MIN).

Fannie Mae requires creation of eNotes in the MISMO SMART Doc® format. For additional information, refer to Fannie Mae's eMortgage Technical Requirements.

Note: To ensure that the eNote is a discrete transferable record, closing instructions or other procedures must be created to ensure that the borrower signs only the eNote at closing and does not also sign a paper version of the Uniform note.

Record Retention Requirements

To preserve the lender's ability to attribute the signer's signature to their identity, certain documents and system records must be retained in a manner that will provide Fannie Mae with ready access to such documents and records if requested of the lender. For example, the lender must retain evidence of a borrower's identity in the loan file. The lender must collect and retain systems logs and audit trails that establish a temporal and process link between the presentation of identity documents and the electronic signing of a document. Additionally, the lender must collect evidence of a borrower's agreement to conduct the transaction electronically and their execution of a particular electronic signature.

All files must be retained for the life of the loan plus seven years. Any files that a lender maintains must include the following:

  • the name of the person (and related entity, if the borrower is not a natural person) who signed each document in the loan file,
  • the date of the signature,
  • the method by which the document was signed, and 
  • any relevant identifying (and other) information that can be used to verify the electronic signature and its attribution to the signer's identity.

Lenders must provide Fannie Mae with any audit trail files requested at any time in a format that is compatible with Fannie Mae systems. In the event of a servicing transfer, the lender is required to provide the new servicer with all attribution evidence and audit trails associated with the loans being transferred.

Requirements for Registering eNotes

The Fannie Mae/Freddie Mac Uniform eNote provides that the Note Holder (as defined in the eNote) will be the entity listed in the MERS eRegistry as Controller. Lenders must have process controls in place to ensure eNotes are registered in the MERS eRegistry as soon as possible after the tamper-evident seal has been applied, but no later than one business day after signing. The record in the MERS eRegistry must reflect the originating lender - the lender whose name is on the eNote - as the first Controller. The following applies to lenders using tradenames or assumed names on eNotes:

  • the legal entity name must also be included on the eNote (for example, ABC Financial, Inc., dba XYZ Mortgage); and
  • the initial MERS eRegistry registration must reflect the legal entity name as the initial Controller.

Any and all subsequent transfers of the eNotes - changes of Control - must be reflected in the MERS eRegistry. Failure to comply with these requirements could render the loan ineligible for sale to Fannie Mae. Refer to the MERS eRegistry requirements for detailed documentation.

Requirements for Correcting eNotes

eNotes containing errors will typically require that a new note be executed. In this instance, once the new note has been executed (either in ink-signed paper or as an eNote) the original eNote should be de-activated on the MERS eRegistry via a Registration Reversal transaction. For additional questions, lenders should contact Fannie Mae's eMortgage Group (see  E-1-02, List of ContactsE-1-02, List of Contacts). If there are any issues identified with an eNote after it has been sold to Fannie Mae, the Servicer should contact Fannie Mae's eMortgage Custodian Oversight Department (see  E-1-02, List of ContactsE-1-02, List of Contacts) to discuss resolution options.

eNote Errors Not Requiring a New eNote

The lender may amend an eNote via an eNote correction agreement, including a name affidavit where applicable, executed by both the lender and the borrower, for the clerical errors noted in Exhibit  E-2-06, Correcting Errors in eNotesE-2-06, Correcting Errors in eNotes. The eNote correction agreement must include a statement regarding the clertical errors that are being corrected within the eNote, and may be executed either electronically or via ink-signed paper. Fannie Mae does not prescribe a form of eNote correction agreement or provide a template, as lenders must ensure compliance with applicable legal requirements in the relevant jurisdiction. The lender is responsible for ensuring that the eNote correction agreement is enforceable and made in compliance with applicable law.

If the eNote correction agreement is electronic, the electronic signatures on the correction agreement must comply with the electronic signature requirements in B8-8-01, General Information on eMortgagesB8-8-01, General Information on eMortgages. Regardless of whether the document is electronic or paper, the lender must:

  • report a "modification" to the MERS eRegistry with respect to the eNote,
  • transmit a copy of the correction agreement to Fannie Mae's eVault, and
  • provide a copy of the correction agreement to the servicer to be maintained in the sevicing file.

For instructions related to post-acquisition eNote corrections, contact Fannie Mae's eMortgage Custodian Oversight Department (see  E-1-02, List of ContactsE-1-02, List of Contacts). 


Recent Related Announcements

The table below provides references to recently issued Announcements that are related to this topic.

Announcements Issue Date
Announcement SEL-2023-11 December 13, 2023