After a decade and a half of struggle for adoption, fully digital eMortgage could be the key to surviving the post-TRID mortgage industry. As an industry accustomed to regulatory changes, it has a surprisingly long history of being slow to adopt technological advances.
According to a recent article in National Mortgage News, technology aimed at improving the origination process was the only technology initiative to gain momentum this year. While legal, investor and customer acceptance are cited by the author of National Mortgage News as the largest barriers to electronically-signed promissory note adoption, we believe the following four trends are upending the stagnant adoption of eMortgage technology.
While customer acceptance was considered a barrier to adoption by 26 percent of respondents (National Mortgage News), we have to wonder who these lenders’ customers are. According to the National Association of Realtors, the typically homebuyer is among the under-35 crowd, and while the millennial generation has bucked the trend of homebuying, they are definitely technological lovers.
Plus, according to a recent article in Bloomberg Business, this technology savvy generation is starting to come out of the woodwork as homebuyers; even if it is in some of the less expected cities.
The digitization of mortgage will not only be more attractive to this generation, but it will provide easier access to a group of people who are already attached to their smartphones and tablets.
The Need to Understand our Purchases
The new TRID legislation is expected to ensure borrowers better understand the mortgage documents that they are signing by conveying the information in a more thorough matter. Adopting a fully digital eMortgage solution would provide borrowers with even more information.
Can’t recall the specifics within the document? You don’t need to find a single piece of paper in a massive pile of loan documents. You simple retrieve it on your phone, tablet or computer. Streamlining this process not only improves the efficiency of the lending process, but consumers will be able to feel more connected to their purchases.
The CFPB has been the champion behind encouraging the reemergence of eMortgage solutions. While eOriginal conducted the first fully digital mortgage in July of 2000, it was clear that the world was not ready. As adoption has always been a problem with eMortgage, having the CFPB behind the transformation of the industry is yet another affirmation that this time the world is ready.
CFPB’s TRID ruling has set the stage for eMortgage to become the industry standard. The new rules require lenders to keep an electronic audit trail of all of the documentation associated with the mortgage for regulatory audits. For lenders who are doing everything in paper, this requires a dual system, resulting in more time, money and staffing to ensure compliance.
As the adoption of TRID rolls out, it only makes sense that lenders will transition to a fully digital solution to simplify their processes.
Did You Know eOriginal Has an eMortgage Platform?
eOriginal, with a team of integration partners, have banded together to oversee the transformation of the industry. With a fully, end-to-end digital process, eOriginal’s new eMortgage solution can enable a 100 percent paperless process from the initial loan application all the way through to eClosing.
In our exclusive webinar we will discuss eMortgage in the digital era, including: why the adoption barriers are breaking down, the impact of marketplace lenders and how our partners integrate with us to provide the most compliant, robust eMortgage solution available today.
Attendees will learn:
- How you can position your company to offer a fully electronic platform with less heavy lifting.
- How our integrated partners can provide greater data transparency, better analysis and regulatory compliance capabilities throughout the mortgage loan process.
- The new business drivers that are breaking down the barriers for a fully digital mortgage solution.
- The advantages of having both a MERS and non-MERS solution.
- Likely impact of new regulations on the industry.