eMortgages
For years, the financial industry has been looking forward to paperless eMortgages. Limitations in technology, however, have left this desire unfulfilled. But new developments are making the eMortgage dream more of a reality.
The concept of an eMortgage is simple—the entire mortgage process, from application to recording, paper-free. Without paper, all aspects of the mortgage lending process can be dramatically improved. Lenders can benefit from greater control over the entire procedure, the ability to make on the fly changes to loan packages, and near-immediate delivery and recording post-closing. Borrowers can benefit from simplified closings, the ability to view and make changes until the last minute, and experience a more enjoyable mortgage experience.
However, numerous steps and parties involved make the process complicated. Title companies, appraisers, property insurers, closers, notaries, recording authorities, and a host of others use different systems with unique file formats. Integrating those systems to communicate between parties has been the greatest challenge in establishing eMortgage standards.
The Mortgage Industry Standards Maintenance Organization (MISMO) has risen to the occasion and is working on establishing standards for lenders. Other players in the eLoan process, such as servicers, closers, title companies, and doc prep companies (like Wolters Kluwer Financial Services), adopt these standards in their products.
In addition to the organizational framework currently in place, legislators have been developing standards to aid the implementation of eMortgages. Laws specific to eMortgages, such as the Uniform Electronic Transfers Act (UETA) and the Electronic Signatures In Global and National Commerce (ESIGN) Act, address concerns over mortgages (both paper and electronic) relating to reporting under the Home Mortgage Disclosure Act (HMDA) and the numerous state and federal laws affecting mortgage lending. These regulatory concerns provide the framework that allows MISMO to develop meaningful standards for the industry.
While a complete paperless transaction is still distant hope for most lenders, more key players are developing the technology and processes necessary to implement eMortgages across the board. Consider the city of Philadelphia. In conjunction with the Pennsylvania legislature, the city developed and implemented eRecording and eNotarization standards. Since then, the number of eNotaries and eRecorders has risen every year. Progress like this brings the financial industry one step closer to paperless mortgages.
Once considered little more than a pipe dream, eMortgages are slowly becoming a reality. The movement towards eMortgages has begun building momentum and can only grow as technology and awareness continue to develop.
PULL OUT ALL THE STOPS of Your Initial Disclosure Process
Learn how SDX Secure Document Exchange can help you meet tight deadlines and communicate quickly and confidentially using a secure, two-way electronic messaging channel. Register for one of our live demonstration sessions:
- Tuesday, September 18, 12 NOON EDT
- Tuesday, September 25, 12 NOON EDT
SDX Secure Document Exchange offers secure means of sending confidential information back and forth, making loan closings faster by eliminating the wait for pick up and delivery. It also provides tracking and reporting capabilities that benefit the parties involved:
- Recipients can view, approve, and reply same day
- Customers can make decisions without doing additional loan shopping
- Employees can focus on origination and new product development
With SDX, institutions can enjoy a significant cost savings in just 30 days from the elimination of traditional prep and shipping. Why wait? Register for our live demonstration session today.
Don’t Miss Us at MBA’s 94th Annual Convention & Expo October 14 - 17, 2007
Don’t Miss Us at MBA’s 94th Annual Convention & Expo October 14 - 17, 2007
Visit our booth (#401) to tap into our industry leaders and learn more about the latest in technology and compliance solutions, including:
- e-Disclosures
- Secure Document Exchange
- Expere® Integrated Enterprise
- Desert Document Solutions
- CompliSource
- PCi Wiz® Sentinel
- PCi Wiz Sentri™
- And much more!!
Look for the Internet Center on the convention floor, sponsored by Wolters Kluwer Financial Services. Use one of the many computers with free Internet access to check your email or look up information online.
For more information or to register, click here.
DON'T MISS US AT MBA'S 94TH ANNUAL CONVENTION & EXPO OCTOBER 14 - 17, 2007
Visit our booth (#401) to tap into our industry leaders and learn more about the latest in technology and compliance solutions, including:
- e-Disclosures
- Secure Document Exchange
- Expere® Integrated Enterprise
- Desert Document Solutions
- CompliSource
- PCi Wiz Sentinel®
- PCi Wiz Sentri™
- And much more!!
Look for the Internet Center on the convention floor, sponsored by Wolters Kluwer Financial Services. Use one of the many computers with free Internet access to check your email or look up information online.
For more information or to register, click here.
REMINDERS
- Check out ComplianceHeadquarters™, your free online resource for additional real estate compliance information.
- Want to take a closer look at SDX Secure Document Exchange but missed the live demonstrations? It’s never too late to watch the recorded version.
- Missed an issue of the VMP® Information Newsletter? Access previous issues in the archive.
