eClosing, eMortgage, eNotes and eRecording explained: your guide to navigating digital closings

In recent years, the mortgage industry has undergone a major transformation with the rise in adoption of digital mortgage solutions. With increasing consumer demand for a more streamlined process, traditional paper-based mortgages are being replaced by digital alternatives to provide both convenience for borrowers and operational efficiencies for mortgage professionals. In this article, we'll explore four key digital mortgage tools that are transforming the closing process today - eClosing, eMortgage, eNotes and eRecording.

What is an eClosing?

An eClosing takes place when one or more required closing documents are accessed, presented, signed and submitted in a secure, electronic environment.

Within the broader scope of eClosing, there are hybrid eClosings and full eClosings. In a hybrid eClosing, a portion of the closing process is completed electronically, while other components are completed with a wet signature. A full eClosing is when all the closing documents are signed, completed and submitted electronically. In a full eClosing, there is no need for the borrower to meet in person with a notary and sign paper documents.

What’s important to note is that in specific cases and locations, though many closing documents can be digitally signed (eSigned), some still require traditional in-person signing. This is because local agencies and investors must also have the resources and technology in place to accept eSigned documents in order for a lender to complete a full eClosing.

Lenders can experience many benefits from adopting eClosing technology, including improved operational efficiency, time savings and reduced errors throughout the closing process. According to a recent independent study, lenders who leverage digital closing technology also reported significant cost savings, with lenders using Encompass eClose saving $83 per loan.

What is an eMortgage?

An eMortgage supports the complete digital mortgage loan process, where closing documents, including eNotes, are digitally created, accessed, presented, executed, transferred and stored electronically through an eClosing process. eMortgage implementation delivers several operational benefits for lenders, including faster delivery into the secondary market, quicker warehouse turn times and risk reduction through improved data validation and audit trails.

What is an eNote?

An eNote is an electronic version of a promissory note that details the loan terms and conditions. Unlike paper notes, eNotes cannot be printed or signed with ink. Instead, they must be electronically signed in their original digital format to maintain legal validity. eNotes are securely stored in a digital vault that meets the requirements of eSignature laws, referred to as an eVault, or an electronic note vault.

The MERS® eRegistry serves as the mortgage industry’s authorized system of record for holders of eNotes. As of June 2025, over 2.6 million eNotes have been registered on the MERS® eRegistry to date, with over 36,000 registered just in the month of June.

What is eRecording?

eRecording is the process of submitting documents for recording online, and having them reviewed and recorded by the county, who then returns the approved, recorded documents back to the submitter electronically. When combined with eClosing and eMortgage solutions, eRecording completes the fully digital mortgage process from application through final recording.

There’s been widespread eRecording adoption throughout the United States, with over 90% of the population living in an eRecording county. This makes eRecording a viable option for a large majority of mortgage transactions, leading to both faster processing times and quicker completion of the recording process.