In 2017, we saw industry adoption and the buzz surrounding digital mortgage skyrocket. Major players like Fannie Mae, Quicken Loans, Notarize and Pavaso made headlines, and digital dominated conversations at industry events. As the new year barrels forward, we continue to be encouraged by the commitment of digital players across the mortgage ecosystem to education and increasing adoption.
National Mortgage News also took note and included digital mortgage as one of the 10 Top Mortgage Stories of 2017, stating, “As the industry moves to streamline the mortgage process, it continues making strides in achieving a more widespread adoption of the digital mortgage.” The article highlights digital headlines of the year and we were elated to see our partnership with Quicken Loans on the list.
From Out-of-Date to Digital
A hallmark of mortgage is copious amounts of paper. Sign here. Initial there. The entire process is cumbersome and leaves incredible room for error. Technology can be leveraged throughout the entire process, providing incredible insights and auditability—for both the documents and their corresponding data. This auditability is a huge factor when it comes to compliance and legal enforceability. Additionally, digital processes eliminate inefficiencies, increase the speed of capital through a faster delivery into the secondary market and enables the secure management of electronically signed assets throughout post-execution life.
Agents of Change: The GSEs
Change is difficult, especially in a complex industry that has been set in its ways for decades, such as mortgage. Consumer demand for all things digital has been pivotal, but it has also taken dedication of players in the mortgage ecosystem. Fannie Mae and Freddie Mac, the Government-sponsored Enterprises (GSEs), have played a crucial role in propelling the digital agenda forward and preparing to scale. Fannie Mae, for instance, launched an eMortgage Calculator, which is a web-based tool that lenders can use to customize and test different scenarios to determine how an electronic mortgage process can be beneficial for their business. Additionally, Fannie Mae also replaced its legacy electronic vault with a new, scalable solution and is actively educating stakeholders in the marketplace on the benefits of “e”.
In reference to the GSEs, eOriginal’s president and founder Steve Bisbee noted, “We’re proud to support organizations like Fannie Mae and Freddie Mac as they make their push toward digital mortgages. There is an acute need for transparency of data exchanged between counterparties and the creation of new standards. It’s great to be among the forces moving the industry forward to secure, digitized transactions.”
Today, it is necessary for one to specify “digital” or “e” prior to mortgage. However, I firmly believe that in the very near future, paper-based mortgages will be a thing of the past, and eClosings, eNotes and eVaults will be more common than paper. In fact, I think it is safe to bet that as digital processes continue to take-off and become the way business is done, we will need to denote “paper” mortgage and adding “digital” or “e” prior to mortgage will no longer be necessary.
In the year to come, I anticipate continued momentum for originators, warehouse lenders and investors – but also considerable adoption by title companies and servicers. Needless to say, it will be an exciting year for mortgage. To read-up on digital mortgage and familiarize yourself with the key components, please download a complimentary copy of our latest white paper.