CHCP Technology & Digital Closing Platforms 2

Question 1

Which federal regulation establishes standards for electronic signatures and records in real estate transactions?

Accepted Answer

ESIGN Act

Answer

The Electronic Signatures in Global and National Commerce (ESIGN) Act of 2000 grants legal validity to electronic signatures and records in interstate commerce, including real estate closings.

Question 2

In a digital closing platform, what is the purpose of a 'wet signature requirement' flag on a document?

Accepted Answer

It identifies documents that still require a handwritten ink signature

Answer

A wet signature flag identifies documents that cannot be executed electronically and must be signed in ink, often due to lender or jurisdictional requirements.

Question 3

What does 'eNote' refer to in the context of digital mortgage closings?

Accepted Answer

A digitally signed and registered promissory note

Answer

An eNote is an electronic promissory note that is digitally signed and registered on the MERS eRegistry, making it transferable as a negotiable instrument.

Question 4

Which system serves as the national electronic registry for eNotes in US mortgage transactions?

Accepted Answer

MERS eRegistry

Answer

The MERS eRegistry is the legal system of record that tracks ownership and transfers of eNotes, ensuring their enforceability as negotiable instruments.

Question 5

When a closing platform uses 'role-based access control,' what does this mean for a settlement agent?

Accepted Answer

The agent's document access is limited to their defined role and assigned transactions

Answer

Role-based access control restricts platform access so users only see and interact with documents and transactions appropriate to their function, protecting sensitive borrower data.

(CHCP) Certified Home Closing Professional Practice Test

(CHCP) Certified Home Closing Professional Practice Test

CHCP Technology & Digital Closing Platforms 2