CHCP Technology & Digital Closing Platforms 3 — Questions and Answers
Question 1: What is a 'closing disclosure (CD) delivery' requirement under TRID that digital platforms must enforce?
- The CD must be delivered at the closing table
- The CD must be received by the borrower at least 3 business days before consummation (Correct answer)
- The CD must be notarized before delivery
- The CD must be sent via certified mail only
Correct answer: The CD must be received by the borrower at least 3 business days before consummation
TRID requires borrowers to receive and acknowledge the Closing Disclosure at least three business days before consummation, a timeline digital platforms must track and enforce.
Question 2: In digital closing platforms, what is 'document versioning' primarily used for?
- Automatically translating documents into multiple languages
- Tracking changes to documents and maintaining a history of all revisions (Correct answer)
- Compressing files to reduce storage costs
- Generating automated summaries of closing packages
Correct answer: Tracking changes to documents and maintaining a history of all revisions
Document versioning records every revision to a document, creating an audit trail that shows who made changes, when, and what was altered — critical for compliance and dispute resolution.
Question 3: What is the role of a 'Signing Order' feature in a digital closing platform?
- It determines which parties receive the highest fees
- It controls the sequence in which parties must sign documents (Correct answer)
- It ranks documents by their legal priority
- It schedules closing appointments by time zone
Correct answer: It controls the sequence in which parties must sign documents
Signing order enforces the required sequence of signatures so, for example, the notary can witness signatures before certifying or a lender representative signs after the borrower.
Question 4: Which technology enables a borrower to electronically verify their identity during a remote online notarization session?
- OCR scanning
- Knowledge-Based Authentication (KBA) and credential analysis (Correct answer)
- Digital watermarking
- Blockchain timestamping
Correct answer: Knowledge-Based Authentication (KBA) and credential analysis
RON platforms use Knowledge-Based Authentication — quiz questions derived from public records — plus government ID credential analysis to verify signer identity before the session begins.
Question 5: What does 'tamper-evident seal' mean in the context of a digitally notarized document?
- The document is printed on tamper-resistant paper
- A cryptographic mechanism detects any alteration made after notarization (Correct answer)
- The document is stored in a locked vault
- The notary physically seals the envelope
Correct answer: A cryptographic mechanism detects any alteration made after notarization
A tamper-evident seal uses cryptographic hashing so any modification to a notarized document after signing is detectable, preserving the document's legal integrity.
Question 6: Under which scenario would a digital closing platform need to support a 'wet/hybrid fallback'?
- When the borrower requests a lower interest rate
- When a lender's investor does not accept eMortgages or a jurisdiction lacks RON authorization (Correct answer)
- When the property is located in a flood zone
- When the title search reveals a lien
Correct answer: When a lender's investor does not accept eMortgages or a jurisdiction lacks RON authorization
Some investors in the secondary market don't purchase eMortgages, and some states haven't authorized RON, requiring platforms to fall back to hybrid or fully wet closings.
Question 7: What is the function of an 'eVault' in an eMortgage ecosystem?
- It stores the borrower's down payment funds electronically
- It securely stores and controls access to authoritative copies of eNotes and eMortgage documents (Correct answer)
- It encrypts wire transfer instructions
- It archives expired title insurance policies
Correct answer: It securely stores and controls access to authoritative copies of eNotes and eMortgage documents
An eVault is a secure, MERS-compliant repository that maintains the authoritative copy of the eNote and other eMortgage documents, controlling who holds and transfers the electronic loan.
CHCP Technology & Digital Closing Platforms 3
What is a 'closing disclosure (CD) delivery' requirement under TRID that digital platforms must enforce?