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F-3-05, Acronyms and Glossary of Defined Terms: E (10/19/2016)

early payment default underwriting review

A review of the seller’s initial underwriting for a mortgage loan that becomes delinquent during the early years of the mortgage term.


Relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.

electronic mortgage (eMortgage)

A mortgage loan for which the promissory note and possibly other documents (such as the security instrument and mortgage loan application) are created and stored electronically rather than by using traditional paper documentation that has a pen and ink signature. Most (but not all) eMortgages typically consist of a paper security instrument and an electronic note. The terms “electronic mortgage,” “electronic mortgage loan,” “eMortgage,” and “eMortgage loan” used in this Guide have the same meaning.

electronic note (eNote or transferable record)

An electronic record under ESIGN and UETA that (1) would be a Promissory Note under the Uniform Commercial Code if the Electronic Record were in writing; (2) the issuer of the Electronic Record expressly has agreed is a Transferable Record; and (3) for purposes of ESIGN, relates to a mortgage loan secured by real property.

electronic note Vault (eNote Vault)

A secure storage solution that meets the requirements of ESIGN and UETA.

electronic record

A contract or other record created, generated, sent, communicated, received, or stored by electronic means.

electronic signature

An electronic sound, symbol, or process, attached to or logically associated with a contract or other record executed or adopted by a person with the intent to sign the record.


The process of removing a property from Fannie Mae’s real estate owned (REO) inventory system of record.

escrow deficiency

The amount of a negative balance in the escrow account, including advances the servicer has made on the borrower’s behalf for tax and insurance payments.

escrow shortage

The amount by which the current escrow account balance falls short of the target balance at the time of the escrow analysis.

excess yield

The amount by which the net note rate exceeds the sum of its required net yield and any specified minimum servicing fee. For ARM loans, this also may be the amount by which the net mortgage margin exceeds its required margin.