We’ve reported on the FHA accepting electronic signatures. This has been seen by many as a significant tipping point in the adoption of e-signatures and e-closings. Now there’s evidence to prove this hypothesis. Here’s the scoop on how this FHA advance is already reshaping the industry:
DocMagic, Inc., a provider of fully-compliant loan document preparation, compliance, eSign and eDelivery solutions for the mortgage industry, announced today that its eSign compliant loan documents were chosen by Stewart Title and Mountain America Credit Union to complete the industry’s first ever eClosing of an FHA loan, in conjunction with Stewart’s eClosingRoom. DocMagic is the exclusive licensee of patent rights that enable its eSign technology.
FHA’s recent announcement supports the ability to eSign all documents with the exception of the note. The announcement states that the agency will begin accepting electronically signed notes by the end of the year.
“eSign has never just been about the upfront disclosures,” said Tim Anderson, director of eServices for DocMagic. “That’s where we started and we’ve done that for a long time now. Our ability to use this technology to help lenders realize a fully paperless mortgage is the real story here. There really is no excuse now not to provide this service to borrowers, who have been demanding it for some time.”
Anderson added that better compliance risk management is an additional benefit of paperless lending. “The ability to provide electronic proof as evidence of compliance will be critical for lenders in the future,” Anderson said. “When documents remain electronic, it’s easier to create and maintain an audit trail that can support the lender during a bank audit.”
“Being the first lender in the country to conduct a live eClosing of an FHA loan and doing it with Stewart’s eClosingRoom platform powered by SureClose and DocMagic’s eSign enabled compliant loan documents is truly an exciting event for us,” said Amy Moser, Vice president and mortgage services manager for Utah-based Mountain America Credit Union. “eClosing gives us a tremendous competitive advantage because it enables us to provide superior customer service to credit union members who demand an efficient loan experience.”
Nancy Pratt, director of eStrategy for PropertyInfo, the technology division for Stewart Title, added, “Our eClosingRoom platform enables lenders like Mountain America and title agencies not only to to eSign, but also to eNotarize and eRecord the closing package in the title office, delivering a fully paperless eClosing experience for all participants. Stewart had its first electronic closing in May of 2005. Having the first FHA loan electronically closed in our system truly is a milestone for the mortgage industry.”
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