Posts

Enabling All Documents For eSignature For A Better Customer Experience

Electronic loan documents have come a long way in the past decade. Today, most lenders incorporate eDocs for at least part of the loan origination process, whether it be electronic disclosures, digital closing docs or other document needs. Making eDocs even more effective has been the adoption of eSign technology, which has streamlined the delivery and signing of loan documents for a more complete and convenient experience for the borrower.

One frustrating challenge that has remained, though, is the ability for lenders to easily send one-off documents, independent from the standard loan doc package, in an efficient manner that allows those documents to be attached to the core loan doc package and electronically signed by the borrower. This results in a situation where a borrower can receive and sign some of their loan docs electronically. However, the lender is then stuck sending the other independent documents physically, or including the documents in an electronic package but requiring the lender to print and sign the extra forms, scan, and return via email.

Featured Sponsors:

 

 
To provide the flexibility and customization required to compete in today’s marketplace, lenders are turning to two key electronic document technologies. The first is using dynamic document generation to ensure that only the necessary documents – with the right information – are created in the first place.

The second is leveraging integrated all-in-one eSign technology for a complete process including integration with doc generation, ability to customize independent documents for signature, eDelivery, enabling the borrower to sign anywhere, anytime, from any device, built in compliance checks and electronic storage in a secure eVault.

Building Custom Doc Packages

Dynamic documents have become the standard for loan document generation over the past few years. Instead of managing through empty space in a static document template, dynamic documents utilize rules-based intelligence and calculations to automatically pull the accurate data fields from the LOS to create transaction-specific documentation.

Featured Sponsors:

 
Lenders using dynamic document software can then use the data to electronically generate and deliver accurate docs to the borrower and investor. Dynamic document platforms that leverage two-way data pushback can also greatly reduce the lender’s susceptibility to errors caused by manually reentering data and eliminate the need to manually create new sets of documents for each transaction, enhancing quality, compliance and efficiency.

Dynamic document engines also make it possible to insert other documents a lender might require, such as disclosures of business relationships with settlement services, documents related to the transactions between realtors or change of circumstance addendums. These forms are not generated by standard loan document software, and the ability to insert them into an electronic disclosure or closing package for delivery is valuable.

Building a Custom eSign Framework

Many lenders have taken the first step in using dynamic document platforms to customize their disclosure and closing packages. However, the next phase in providing borrowers with a fully digital loan experience is ensuring that all forms can be eSigned.

Featured Sponsors:

 
Currently, most of the “extra” documents added to a package that are not specifically generated by the document software either are not mapped to eSign capabilities or the borrower is asked to use a separate system from what they have been using with the lender. This means that when the borrower receives an electronic document package, they will be able to sign some of the forms electronically but must print out the others. From there, they have to scan and email or mail the wet-signed forms back to the lender, slowing down the loan workflow.

The best loan document generation systems will offer lenders multiple options for adding external documents to an eSigned doc package. First, custom documents should be easy to add to a lender’s library in the doc generation software, so that they can be seamlessly included with all doc requests in the future. Second, external documents could be included in the initial doc generation request, along with the mapping coordinates for the electronic signatures. And finally, lenders should have the option to quickly and easily add one-off documents manually after the eSignable package has been created, editing them to add the appropriate eSigning points along with any other borrower interactions like check-boxes or text fields to be filled in.

These options provide lenders with maximum flexibility to include their custom documents within the loan doc package and make them eSignable, enabling their borrowers to complete the entire package in one seamless online experience.

As lenders move more of their loan operations into the digital world, the ability to customize all documents for eSignatures and inclusion in document packages will keep them on the leading edge of competitiveness, customer service and cost efficiencies.

About The Author

Harry Gardner

Harry Gardner is executive vice president of eStrategies for Docutech, a leading provider of compliance and documentation technology. Founded in 1991, Idaho Falls, Idaho-based Docutech offers a wide range of solutions to institutions all over the world. From document generation and imaging support to eDelivery, digital signatures and print fulfillment, Docutech sets the standard in providing market-proven technology and unrivaled client service to you, your workforce and your clients.

Freddie Mac Expands eMortgage Solutions With DocMagic’s eVault Technology

Freddie Mac has implemented DocMagic’s  SaaS-based eVault technology and SmartREGISTRY platform. DocMagic’s eVault provides a secure electronic repository for storing documents and performing automated eNote certification to Freddie Mac eMortgage lenders via Loan Selling Advisor.  By automating the eNote certification process, Freddie Mac will speed the funding process, thereby improving liquidity in the mortgage markets and reducing lender’s warehouse line costs.

Featured Sponsors:

 

 
“Freddie Mac is committed to streamlining the mortgage process for lenders and borrowers, and has been a leader in purchasing eMortgages since 2006,” said Andy Higgenbotham, Freddie Mac’s Single Family Chief Operating Office. “We rolled out our automated certification process in 2015 to speed up the funding process, thereby improving liquidity in the mortgage markets and reducing lender’s warehouse line costs. We are now expanding this process to include the DocMagic platform.”

Featured Sponsors:

 
DocMagic’s eVault provides safe and secure storage for sensitive loan documents. It also automatically parses and validates data in a SmartDoc eNote against data in the user’s core system of record. Additionally, DocMagic’s SmartREGISTRY platform enables holders of eNotes to securely transfer these electronic documents to other eVault systems, such as those used by investors, conduit aggregators and servicers. Ultimately, it facilitates real-time access, delivery, storage and much needed control of electronic loan files.

Featured Sponsors:

 
“Freddie Mac has been a long-time visionary and champion of eMortgages over the years and has made great strides with their unwavering commitment to automation across the supply chain,” stated Dominic Iannitti, president and CEO at DocMagic. “Now, with the successful rollout of SmartDoc eNote data validation prior to funding, this demonstrates the advantages and a clear-cut ROI of going completely ‘e.’ We look forward to ongoing collaboration with Freddie Mac and to further adoption of the digital mortgage process.”

Notable is that that Freddie Mac encourages the use of ‘SMART’ (securable, manageable, archivable, retrievable, transferable) eNotes because static documents do not contain source data, and thus make it difficult, costly and time consuming to confirm the data on documents match.

DocMagic established a process that guides lenders on how to begin using SmartDoc eNotes. The company’s eVault technology is integrated with its Total eClose platform, which is an eClosing solution that creates a 100 percent paperless digital mortgage process — from origination through eClosing, eWarehouse lending, investor eDelivery and eServicing.

Tony Garritano

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 tony@progressinlending.com.

Lenders One Launches Complete eClosing Solution For Members

Lenders One Cooperative, a national alliance of independent mortgage bankers, has launched Lenders One eClosing by DocMagic, a complete eClosing solution for borrowers, lenders and investors. The eClosing solution provides an entirely paperless workflow that integrates every component of the closing process and guides users through each step.

Featured Sponsors:

 

 
Launched for Lenders One members at the Lenders One Summer Conference in Salt Lake City, Lenders One eClosing by DocMagic is evidence that eMortgages and eClosings are no longer a future-state vision. When using the solution, the average loan closing “at the table” can be reduced from 60 minutes to 15 minutes, helping to dramatically improve the borrower experience.

Featured Sponsors:

 
The solution includes the following features:

>> Integrated with all of the major LOS platforms to generate e-enabled documents.

>> An embedded compliance engine that automatically audits documents and data against applicable industry laws and regulations to help ensure compliance throughout the loan lifecycle.

>> eNotary technology for in-person electronic notarization or remote online notarization where permissible.

>> The ability to deliver a MISMO SMARTDoc eNote with direct connectivity to the MERS eRegistry.

>> A secure, certified eVault which provides long-term storage and eDelivery to warehouse banks and investors and features a date-stamped and time-stamped audit trail to help show proof of compliance at all times.

Featured Sponsors:

 
“Our eClosing technology puts Lenders One members at the forefront of the eMortgage evolution, a sought after capability made possible through our collaboration with DocMagic,” said Michael Kuentz, CEO of Lenders One. “Importantly, the eClosing solution incorporates feedback received from our members and service providers, helping ensure we address their needs. Our comprehensive eClosing solution provides our members with options to choose full eClose or hybrid eSign/ink-sign workflows. The technology adapts to the lender’s production environment and compresses the overall timeline to loan sale, generating material savings for lenders facing historically high loan production costs.”

“Effective implementation of eClosing begins with a well-defined eMortgage strategy, and by working in concert with Lenders One, we are helping originators set up their eClosing production lines at a pace, and in a manner, that is consistent with their overall business goals,” said Dominic Iannitti, President and CEO of DocMagic. “The deep working relationships that Lenders One has established with its members are critical, and through our combined strength we are accelerating the eMortgage journey for progressive lenders nationwide.”

About The Author

Tony Garritano

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 tony@progressinlending.com.

Docutech Advances “E” Initiatives

Docutech, a provider of document, eSign, eClosing, and compliance technology for mortgage, home equity and consumer lending, announced that its Solex eClosing and eVault solution has been approved by Fannie Mae for eClose, eNote, and eVault functionality. In addition, the Solex eVault has received certification from the MERS eRegistry for all eNote management transactions. And there’s more …

Featured Sponsors:

 

 
Solex eClosing and eVault enables lenders to securely close and register electronic notes on the MERS eRegistry and deliver them with full confidence that each mortgage satisfies investor requirements. Leveraging Docutech’s proprietary and enhanced Solex eVault, lenders can securely and automatically store eNotes, register them on the MERS eRegistry and transfer control to investors via direct VPN connectivity to Solex. The MERS eRegistry serves as the legal system of record for identifying the Controller (holder in due course) and Location (custodian) for the Authoritative Copy of every registered eNote in the country today.

Featured Sponsors:

 
In conjunction with Solex’s Fannie Mae approval and MERS certification, Docutech announced that a top five retail mortgage originator has executed its first eClosing using Solex, including registering an eNote on the MERS eRegistry and delivering it to Fannie Mae.

Featured Sponsors:

 
The Solex eClosing platform, in partnership with Simplifile, provides lenders with a comprehensive Integrated eClosing solution, with eSigning efficiencies from initial document generation through post-closing. Combined with Docutech’s dynamic document generation engine ConformX, lenders can automatically generate digital, data-driven documents that adhere to rules-based intelligence and meet specific loan criteria. Docutech and Simplifile’s intelligent eEligibility engine analyzes each closing package to be as “e” as it can be, according to state, county, and investor variations. Hybrid options include eSigning of ancillary documents, plus options for SMART Doc eNotes, eNotarization and eRecording.

“We are honored to work side-by-side with leading lenders in the spirit of driving innovation and delivering an exceptional customer experience” said Amy Brandt, Docutech’s president and CEO. “Fannie Mae and MERS have been critical to the actualization and furtherance of eMortgages within our industry. With their backing, we can ensure that our solutions meet the highest standards and are able to comprehensively serve lenders and their customers in the evolution to a fully digital mortgage.

About The Author

Tony Garritano

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 tony@progressinlending.com.

Advancing eNote Adoption

MERSCORP Holdings, Inc. (MERSCORP Holdings) and eOriginal, Inc. have launched a new solution offering that will enable originators to accelerate entry into the digital mortgage ecosystem.

MERS eNote Solutions, part of the MERS eSuite, will enable the creation, execution, registration and management of the electronic promissory note, or eNote, to mortgage originators across the industry.

Featured Sponsors:

 

 
“MERSCORP Holdings is proud to provide technology-based solutions that add value to our members’ bottom line,” said Brendon Weiss, MERSCORP Holdings Chief Operating Officer. “Our members identified several gaps that need to be addressed to increase eNote adoption, and this new solution fills a significant need for originators seeking to leverage existing vendor relationships.”

MERSCORP Holdings is the owner and operator of the MERS eRegistry, the national mortgage registry and legal system of record for identifying the controller (holder) and location (custodian) of the authoritative copy of registered eNotes. Interest in the production of eNotes continues to grow as consumers and lenders recognize the value of moving toward a more streamlined, electronic process. With more than 5,000-member organizations, MERSCORP Holdings is central to the growth of digital mortgages, and the new service provides a turn-key solution to those members who are driving toward a paperless process.

Featured Sponsors:

 
“This solution will enable thousands of originators to realize the benefits of a digitally executed promissory note at the closing table. The eNote is the most important document of a digital closing because it is critical for the funding of electronic mortgages by investors,” said eOriginal Senior Vice President and General Manager of Digital Mortgage, Simon Moir. “MERSCORP Holdings, as the operator of the MERS eRegistry, has been instrumental to the advancement of digital mortgage. We are proud to have eOriginal’s technology power the MERS eNote Solutions.”

eOriginal delivers a fully digital mortgage and supports every type of digital closing strategy. By creating a ‘digital original,’ eOriginal guarantees trusted transactions of digital financial assets. Major financial institutions, leading law firms and credit ratings agencies have validated and rely on eOriginal as a trusted partner with the greatest depth of digital transaction management expertise to navigate and advise on industry best practices.

Featured Sponsors:

 
Hopefully partnerships like this will move the eNote ball forward.

About The Author

Tony Garritano

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 tony@progressinlending.com.

eSign Milestones Continue

DocMagic, Inc., a provider of loan document preparation, regulatory compliance and eMortgage services, announced that it has processed more than 300 million mortgage-related electronic signatures.

Featured Sponsors:

 

 
This milestone achievement is the direct result of increased adoption of several DocMagic technologies that feature its eSigning platform, which can be accessed as a software-as-a-service (SaaS) or on-premise enterprise platform. Each of DocMagic’s digital platforms reports a significant increase in volume, which the company attributes to lenders’ growing need to prove a TRID-compliant, 100 percent paperless mortgage process.

Featured Sponsors:

 
“Borrower demand is driving the increase in eSignings, and lenders are choosing DocMagic to get a consistent, compliant eSigning solution that spans the original LE [Loan Estimate] to the final CD [Closing Disclosure],” said Dominic Iannitti, president and CEO of DocMagic. “Lenders know DocMagic is the go-to choice for compliance. We reached 300 million eSignatures because we have solved lenders’ number one burden for the past two years—electronic evidence of TRID compliance—while enabling them to stay competitive and enhance the overall borrower experience.”

Featured Sponsors:

 
DocMagic reports significant volume increases for SmartCLOSE and Total eClose, two award-winning technologies that enable lenders to comply with TRID and UCD (Uniform Closing Dataset) guidelines. SmartCLOSE is a collaborative closing portal offering one system of record that assures accuracy, completeness, consistency and compliance of the data before final documents are drawn and the borrower electronically executes the documents using DocMagic’s integrated eSign technology. Total eClose, a complete paperless, digital closing solution with integrated eSignature and eNotarization capability, provides continuous compliance checks to assure all documents are complete, current, consistent and compliant.

“A lot of existing DocMagic customers adopted our eSign technology because it’s so much easier to access and use than other platforms,” said Iannitti. “We were already integrated with the vast majority of LOS systems, so providing eSigning functionality was a logical extension of our service. We also added new integrations, which brought onboard new eSigning customers. Having an eSign technology that can draw new customers while expanding use among existing customers shows the ubiquitous need for the functionality DocMagic’s technology provides.”

eClose: Moving Toward The Holy Grail

A fully paperless eClose has long been the Holy Grail for the mortgage industry. Just as Sir Galahad embarked on a quest to find the Holy Grail that would bring the ultimate benefits of self-actualization and salvation, brave lenders and tech vendors have been working tirelessly to achieve fully electronic closings and reap their invaluable benefits.

Not only do eClosings offer a wealth of operational benefits for lenders—improved efficiency, cost savings, tighter security and compliance, just to name a few— but they also enable lenders to extend more convenience and transparency to their customers. For lenders, they truly are the Holy Grail worth questing after.

Featured Sponsors:

 

 
Luckily, eClosings are seeing more traction within the industry than ever before, but there’s still some distance to journey before they become standard. The first important step is understanding where the industry is currently and where it still needs to go before it can get its hands on the Holy Grail.

The Current State of eClose

A majority of eClosings today are hybrids between a standard paper closing and a full eClosing, meaning part of the process takes place electronically, but some portion still involves paper, usually for the notarized and title documents. Hybrid eClosings indicate progress for the industry and are still preferable to an entirely paper-based process, as transferring even part of the closing to digital brings business benefits to the lender and an improved experience to the borrower.

Featured Sponsors:

 
Now it’s time for pioneers in the industry to address the handful of obstacles that remain on the path to eClosing.

(1) eNotarization

eNotarization is the aspect of eClosing that has perhaps most complicated the industry-wide transition to paperless closings.

This difficulty can be traced to confusion and lack of consistency in the current legal environment. While there is an existing legal infrastructure to confirm the validity of electronically notarized documents, notary legislation is controlled on a state level, which has resulted in a patchwork of differing laws.

While some states simply accept the ESIGN/UETA legal infrastructure, others have crafted their own legislation, and still others have yet to proclaim whether or not they will recognize eNotarization. This issue has been complicated even further now that some states recognize remote eNotarization—similar to standard eNotarization except the notary witnesses the closing ceremony via webcam instead of in person.

Due to differing state laws, title underwriters have been hesitant to insure loans closed with remote eNotary, because of the risk that a county recorder might notice that the notary was from a different state than the borrower and refuse to record the loan. As a result, investors have also been hesitant to purchase loans that have been remotely eNotarized unless they’re working in the few states, like Virigina and Montana, that have explicitly passed laws around the practice. Fannie Mae and Freddie Mac’s official policies initially stated that they would accept remotely-notarized loans only for borrowers and properties in the same state as the remote notary. More recently, those policies seem to be evolving toward acceptance of a remotely-notarized loan “as long as the title underwriter insured it,” regardless of location.

Featured Sponsors:

 
The most straightforward solution would be for all states to simply accept the legal validity of electronic notary signatures under the existing ESIGN/UETA legislation. Only once the legal landscape has become more standardized across states will eClosings become the norm.

(2) Widespread Misconceptions

While most lenders and consumers recognize the benefits of conducting closings electronically, commonly held misconceptions among all parties involved have also impeded eClose traction. Luckily, this is an easy obstacle to overcome, as addressing it simply requires a little more education.

With the increasing frequency and complexity of data breaches, perhaps the biggest worry among lenders is that eClosings could be less secure than paper closings. However, digital mortgage processes actually have the potential to be more secure, as there’s less manual data management and better authentication methods to confirm the borrower’s identity. And it’s always important to remember that regardless of the method used to sign the final documents, on paper or electronically, lenders must store and secure the borrower’s personal information in the same back-end LOS systems, so eClosings don’t introduce any new issues related to data breaches.

Borrowers are generally happy to embrace eClosings, since many of them are already familiar with completing financial transactions online and would prefer the convenience of this method. However, they may also have security concerns, so lenders should make it a point to be transparent during the process to ensure borrowers feel comfortable.

(3) Technology

Technology solutions supporting eClose exist today, but they vary in their areas of focus and don’t yet comprehensively address every need at the closing table. Solutions that focus on eNotarization or remote notarization lack tight integration with document generation and employ manual tagging for signature points, introducing opportunity for human error if a signature point is missed.

There have been recent announcements of “completely electronic closings,” which indicate good progress toward a completely paperless process. However, in each case a lot of manual work and document handoffs were necessary to pull together all of the closing documents into a single eSigning event. Still, as the industry develops greater integration between lenders’ loan origination systems, doc generators, title production systems, closing agents, and electronic notarization and recording, we will continue to move toward more seamless solutions where document assembly and tagging will be performed automatically.

These developments attest to the hard work technology vendors have been putting into heralding in the age of eClose with optimal technology. The increasing prevalence of APIs and vendor partnerships are also facilitating the transition.

Additionally, there are still individual solutions that lenders can use to take some of the paper out of the process. Since eClosings hinge so significantly on documents, the most important feature to have in today’s lending environment is integration between the doc source and eSign platforms.

The industry is closer than ever to possessing the Holy Grail of mortgage lending: a fully paperless eClosing. All that remains of the quest is to overcome some difficult but conquerable obstacles, and then the entire industry will reap the benefits of eClosings.

About The Author

Harry Gardner

Harry Gardner is executive vice president of eStrategies for Docutech, a leading provider of compliance and documentation technology. Founded in 1991, Idaho Falls, Idaho-based Docutech offers a wide range of solutions to institutions all over the world. From document generation and imaging support to eDelivery, digital signatures and print fulfillment, Docutech sets the standard in providing market-proven technology and unrivaled client service to you, your workforce and your clients.

GSE Approves New eMortgage Technology Solution Provider

NotaryCam, Inc., a provider of online notary and mortgage eClosing services, announced that the company’s eClose360 online notary platform has been tested and approved by Freddie Mac for eMortgage origination. To be approved, vendors must meet Freddie Mac’s requirements to provide eMortgage solutions.

Featured Sponsors:

 

 
“We are very pleased that our technology has now been approved by Freddie Mac for eMortgage closings,” said Rick Triola, Founder and CEO of NotaryCam. “Many portfolio lenders and those who sell eMortgages to other investors have been relying on our patented eClose360 ceremony for some time. Now, mortgage lenders who sell their production to Freddie Mac can execute a full set of loan docs, register with MERS eRegistry and fund in near real-time and share those benefits with their partners and borrowers.”

Featured Sponsors:

 
NotaryCam’s eClose360 is an online notary platform that allows mortgage closings to take place entirely online, solving the last-mile digital challenge, thereby removing all associated stress and the friction of having to attend closings physically. The technology won more attendee votes than any other digital mortgage technology in its category after its demonstration at the recent Digital Mortgage Conference in San Francisco.

Featured Sponsors:

 
NotaryCam allows businesses and individuals to legally notarize, sign and execute documents and agreements online. The company has legally completed tens of thousands of notarizations in all 50 states and over 65 countries. Parties from anywhere in the world can connect to a live notary public in a secure virtual signing room. Identities and eSignatures are verified in a face-to-face web interaction to eClose real estate and mortgage transactions, notarize deeds, power of attorney, health directives, and more. NotaryCam was developed in lockstep with the needs of both Government Sponsored Enterprises (GSEs) to ensure that eClose360 meets all of their requirements. NotaryCam signing agents are also certified by the National Notary Association.

Big eClosing News Out Of North Carolina

Jason and Karen Boccardi made history last week when they refinanced the mortgage on their Winston-Salem property. It was not the home that was historical, or anything about the closing paperwork—just the opposite—it was that there was no paperwork.  Here’s what happened:

Last Friday, the Boccardis became the first people in North Carolina history, along with their lender, North State Bank, to execute a 100 percent electronic mortgage closing, called an “eClosing.” A few such totally electronic closings have been done around the nation. Government regulators say the North Carolina one is different in that it was not done as just a one-time test, but as the start of a new 21st Century way to do mortgage closings.

Featured Sponsors:

 

 
“This was our first North Carolina eClosing,” NC Secretary of State Elaine F. Marshall said Tuesday, “it is not our last. We want this to become a regular option for lenders and their customers because of the many advantages eClosing offers versus the slower, traditional paper-based system.”

Featured Sponsors:

 
Secretary Marshall has been a leading advocate for modernizing traditional business practices in North Carolina to better compete at the national and international levels. She and her agency have led the charge along with many North Carolina county registers of deeds to do more paper-free electronic recordings of government-required filings and land records.

Featured Sponsors:

 
As the notary public regulator in North Carolina, the Secretary of State’s office has developed the standards and curriculum for the electronic notary status, often called eNotary. A notary public with this status can attach a digital version of their notary stamp to electronic legal transactions, making them legally the same as paper-based filings requiring a notarized document.

“The eNotary is essential to moving legal filings into the digital age,” Secretary Marshall said. “People and institutions still want to know that a notary was there in the room confirming the signer’s identity even if the filing is moving through cyberspace instead of being a pile of paper.”

The electronic, notarized mortgage was insured by Investors Title Insurance Company of Chapel Hill. DocMagic and World Wide Notary were the electronic solution providers that were used.

Secretary Marshall stressed that eClosings have all of the regular features and safeguards that people see when they execute a mortgage on paper. “For eClosings we require the physical presence of that notary plus the

access to legal expertise—there is zero drop in standards for an eClosing—it is just faster, far more convenient and in my opinion more secure.”

The historic eClosing last Friday featured a test of the different elements by having the event take place in a North State Bank office in Hickory for a property in Winston-Salem, with the attorney for the Boccardis from the Hunoval Law Firm participating via an interactive video link from Charlotte.

“We stress tested the whole thing as hard as we could,” Secretary Marshall said. “It was still far quicker and easier to do than a traditional closing.” Marshall added that many government officials, digital service venders and lenders have worked for years to make sure that the way digital records are recorded in North Carolina is safe, secure and reliable.

“We have actually been electronically recording many filings such as land records this way in North Carolina for years now, and there has never been any security issue,” she said. “We are simply bringing the system to the level where people buying homes and applying for mortgages can use it.”

Marshall said with eClosings now a feature in North Carolina, it put the State in a more competitive business climate compared to areas that only offer paper filings.

“This is a win-win-win scenario,” she added. “The lender gets their work done quick and easy, the borrower gets in and out on a schedule that fits for them, and the land records get recorded instantly at the county register of deeds. There are no couriers or copiers or travel delays.”

North State Bank is currently the only lender to have done a fully paperless eClosing. The bank has been an active participant for the past year, vetting the system as it prepared to do a live closing. North State Bank President Ken Sykes attended the closing on Friday.

“We stand ready to work with all other North Carolina lenders to get them up to speed on this,” Marshall said. “One thing we all noted during this closing was that even though we tried to make it into a real ceremony—it was still so fast and easy that we had a hard time not being finished in just a few moments.”

About The Author

Tony Garritano

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 tony@progressinlending.com.

We Need To Get It Right This Time

I remember the late 1990s when everyone wanted to do an eClosing pilot. Everyone thought that eMortgages would blow up and go mainstream faster than you can imagine. Well, here we are over 15 years later and eMortgages are still not mainstream. But fear not, there is renewed industry interest and good things are happening once again.

Featured Sponsors:

 

 
For example, DocMagic Inc. has successfully completed the mortgage industry’s first comprehensive eClosing in Massachusetts, which included both lender and closing/settlement agent documentation, for radius financial group, inc.

DocMagic’s Total eClose solution is a single-source platform that contains all of the components needed to facilitate a completely paperless digital closing. Paramount to achieving the end-to-end eClosing was eNotarization services provided by strategic partner World Wide Notary (WWN). Once the eClosing process begins, documents requiring notary acknowledgment are automatically grouped by the system and electronically executed in the presence of the notary. The entire process takes only minutes and can happen in the comfort of the borrower’s home.

Featured Sponsors:

 
DocMagic’s solution includes all of the critical components required to execute a fully digital eClosing transaction: its dynamic eDocument library that features eSignature, eNotary, and MERS eRegistration capabilities, and the system automatically stores all data and documents within a secure eVault designed to make investor eDelivery as simple as a few clicks. The single-source platform creates a highly-efficient, transparent and fully compliant eClosing process that guides users through every step, logs all activities and creates an irrefutable audit trail.

Also key to DocMagic enabling radius’ first eClosing was the participation of Santander Bank, which served as the eWarehouse lender. “In addition to having integrated eNotary capability, one of the last remaining obstacles to adoption has been the reluctance of warehouse players to fund eNotes,” said Tim Anderson, director of eServices at DocMagic. “We helped test and implement an eWarehouse process to eDeliver acceptance of the eNote to Santander Bank within seconds after the eClosing was completed. This is an industry-altering achievement.”

Featured Sponsors:

 
DocMagic maintains detailed evidence of TRID compliance from the original loan application and Loan Estimate (LE) to delivery of the final Closing Disclosure (CD) with data, compliance determinations, calculations and documents all stored within DocMagic’s eVault for proof of compliance.

So, it’s certainly great that the eMortgage is catching on again, even if it had to be re-branded and called the Digital Mortgage to get where it is today. Hopefully the industry will get it right this time.

Where do we go from here to make this effort this time around a success? More vendors and lenders have to move in this direction. The more vendors that offer an eMortgage solution and the more lenders that adopt it, the better.

And we are starting to see this happen. For example, NotaryCam has launched what it calls its eClose360 platform. “What we’ve done has cracked the code around that last mile friction in a real estate mortgage transaction,” said Rick Triola, president and CEO at NotaryCam. “Our eClose360 is an online notary platform that allows mortgage closings to take place online, completely, removing all associated stress and the friction of having to attend closings physically. Borrowers now attend anytime from anywhere in the World and we have legally completed tens of thousands of notarizations in all 50 states and over 65 countries.”

Over the past several years the system has been in a pilot program with top online mortgage lenders to close loans nationwide. “Having borrowers attend our closings from anywhere — even overseas, even at 7 a.m. on a Saturday — has been most rewarding. Our partners have been thrilled by the tremendous feedback from their borrowers and loan officers. Closing On Demand — they couldn’t ask for anything better,” Triola stated.

NotaryCam allows businesses and individuals to legally notarize, sign and execute documents and agreements online. Parties from anywhere in the world can connect to a live notary public in a secure virtual signing room. Identities and eSignatures are verified in a face-to-face web interaction to eClose real estate and mortgage transactions, notarize deeds, powers of attorney, health directives, and more. NotaryCam was developed in lockstep with the changing needs of the GSEs to ensure that eClose360 would meet all investor requirements.

I’m cautiously optimistic that this time it’s the real deal. This time the eMortgage, or the Digital Mortgage, or whatever you want to call it, will in fact go mainstream.

About The Author

Tony Garritano

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 tony@progressinlending.com.