By now the news has hit that DocMagic has acquired eSignSystems. Over the course of the last 12 to 18 months we have seen a lot of mortgage technology firms get acquired and that trend will likely continue. However, in my mind, this acquisition stands out and is worthy of special note. Here’s why I say that:
DocMagic is known to be a market leader in terms of overall market share when in comes to the mortgage document creation business. In this case, eSignSystems was looking for a more strategic parent. Industry events such as the I.R.S. accepting e-signatures, FHA opening its doors to e-mortgages, The CFPB’s new disclosure rule set to hit the mortgage industry in August of next year and the new CFPB e-closing pilot, have really made the demand to migrate to full electronic processes very apparent.
With all of these industry events happening within the span of just a year, the marriage of DocMagic and eSignSystems really makes sense. DocMagic is a leader in providing an enterprise-level, Software as a Service document creation and fulfillment service. eSignSystems on the other hand has been offering eSigning, eDelivery, and eVaulting technology on-premise to technology providers and lenders since 1999. As a result, the combination of these two companies will enable these two companies to offer industry participants a more turnkey, end-to-end electronic process however they want it, either on-premise installed or as a Web-based solution.
Why is this significant? First, because you now have the combined brain-trust of both executive teams that have been heavily involved in and have been actively pushing electronic processes for almost 20 years. It’s important to note that eSignSystems will continue to operate as a standalone business and the entire executive team is staying in place. Specifically, Kelly Purcell remains EVP of sales and marketing, Jonathan Kearns stays SVP of technology solutions, Brian Pannell continues as VP of client services, etc. In fact, the development team at eSignSystems is expected to grow considerably.
“The acquisition of eSignSystems by DocMagic is a marriage of extraordinary talented and visionary people with incredible SaaS and on-premise products and services,” said Dominic Iannitti, President and CEO of DocMagic. “The management team at eSignSystems has done an exceptional job bringing innovative solutions to the forefront of e-mortgage adoption, and their contribution to the eMortgage revolution cannot be overstated. By combining the best of eSignSystems on-premise software with DocMagic’s SaaS solutions, eSignature patent, compliance and enterprise infrastructure, there is no question that this acquisition was meant to be. Simply put, we are just better together.”
As a result, those lenders that want to turn on eSigning, eDelivery and eVaulting like a switch in an Internet-based environment can now do just that. On the other side of the coin, those lenders that want an installed on- premise e-process can do that, as well.
Kelly Purcell described the industry advantages of the acquisition this way, “Enabling electronic disclosures was great as a starting point, but now because of several crucial industry events, you can implement the full e-process, including closing. The combination of DocMagic and eSignSystems gives our customers and industry stakeholders additional choices. To use a sports metaphor, we’re no longer playing a two-inning game, we’re playing the full nine innings.”
What are the broader industry implications of this acquisition? Purcell answered, “As the migration away from paper to electronic processes becomes more pronounced this acquisition is poised to help our customers and the lending community embrace true innovation. This represents a big step forward in making electronic solutions available to all technology providers and lenders, regardless of size, to realize better efficiency, greater compliance and an improved borrower process all at the same time. This acquisition makes that possible.”
About The Author
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at email@example.com.