We are seeing numerous indicators that the mortgage industry is ready for a digital transformation that will not only improve the borrower experience, but also deliver operational and capital efficiencies to the lender.
Bringing the Mortgage Process Out of the Dark Ages
Earlier this month, I presented alongside industry thought leaders on a panel at LendIt USA 2017. The session, “Bringing the Mortgage Process Out of the Dark Ages”, was moderated by Tony Zerucha of Bankless Times and focused on the opportunity provided by the digital mortgage experience to streamline the mortgage process, enhance loan quality and reduce costs to both lenders and borrowers. Here are some of the key points from my co-presenters:
- “One side needs less friction and one needs more information. Technology is inevitable because it is good at gathering data and adhering to rules.” – Nima Ghamsari, CEO of Blend
- “It usually takes three to four years for traditional players to adopt new disclosures and regulations, while new technology players can be more nimble, resulting in better compliance and governance.” – Nick Stamos, CEO of Sindeo
- “It’s of primary importance to collaborate with third party providers to address the fragmented nature of the current technology.” – Jeff Foster, CEO of Clara Lending
- “Under TRID, it’s almost impossible to close a loan in under eight days. Consumer expectations may want things to happen faster, but regulatory structural considerations actually inhibit some of those expectations.” – Josh Tatum, Director of Business Development at SoFi
Digital Mortgage Makes Headlines
Recently, Fannie Mae selected eOriginal to lead its next generation electronic vault. Fannie’s commitment to enhancing the digital mortgage revolution and removing obstacles to eMortgage adoption through our modern, secure and scalable platform is a huge positive for the industry. Fannie Mae’s eMortgage Product Manager Michael Cafferky states, “The eMortgage process supports our customers’ desires to provide a better solution to borrowers, eliminate inefficiencies in the mortgage process and increase velocity of capital through faster delivery into the secondary market. Everyone wins with an eMortgage process.”
Collingwood Group focused on eMortgage in its recent news brief and mentioned a Moody’s report that noted, “Lenders and mortgage servicers that fail to comply with the established legal framework run the risk of an unenforceable e-note, but the handful of court cases involving challenges to e-mortgage foreclosures have provided clarity around the servicer’s ability to demonstrate that it has the necessary control over the mortgage note to permit it to foreclose.”
National Mortgage News also covered the digitalization of the mortgage process noting, “Beyond being able to have a product that is scalable, the offering from eOriginal also makes it easier to make changes when MERS issues updates. Currently, Fannie has to handle those updates itself, but eOriginal will make such changes in the future.”
What’s All the Buzz About?
I firmly believe that “Digital Mortgage” is queued up to be the reality of 2017 and look forward to watching its metamorphosis throughout the upcoming year. The commitment and commentary from mortgage leaders is further evidence that it is time for mortgage to emerge from the dark ages. Later this month, eOriginal’s digital mortgage team will be at the MBA National Technology in Mortgage Banking Conference in Chicago. If you are attending the event, please schedule a meeting with us to learn more about our electronic mortgage solution and how it can benefit your organization.