DocMagic now supports the use of electronic Home Equity Line of Credit (eHELOC) agreements. Similar to an electronic note, an eHELOC is a home equity line of credit agreement that is evidenced by an electronic record and signed using an electronic signature.
As the HELOC market continues to grow, different factors have increased interest in creating a dataset and SMART DOC ® V3 Specification for an eHELOC agreement. One benefit of an eHELOC versus a traditional HELOC is the ability to instantly track ownership. An eRegistry will retain the identity of the originating lender along with all transfers and assignments. Also, an eHELOC can be securely transferred between eVaults.
An eHELOC does not qualify as a “transferable record” as the term is used in the federal ESIGN Act, 15 U.S.C. § 7021, or the Uniform Electronic Transactions Act (“UETA”), Section 16. Therefore, DocMagic adds definitions and additional terms to the eHELOC agreements to meet the requirements of UCC Article12, Controllable Electronic Records, that together with certain other amendments to UCC Articles 1 and 9 provide legal rules to govern the transfer of certain digital assets including an eHELOC as a “controllable payment intangible.” This provides an analogous, and very familiar, structure for originating eHELOCs as DocMagic provides for originating closed-end Notes.
Electronic versions of DocMagic’s standard HELOC agreements are now available in all generic HELOC loan plans. Additionally, DocMagic can make electronic versions of any custom HELOC agreements client may wish to use.