In 2018, I talked about phase two of digital mortgage, which went beyond the borrower portal (phase one) and focused on an end-to-end process that creates an eNote to be managed all the way through the secondary market. As we enter 2019, I’m excited to see the industry continue to move forward and I anticipate the months ahead to reflect a true renaissance of digital mortgage processes.
National Mortgage News agrees, stating, “There’s a technology renaissance afoot in the mortgage industry, as technology developers rapidly bring new capabilities to market that lenders and servicers finally appear eager to adopt. In 2019, tech will be tapped to battle for borrowers as lenders compete for market share.”
The term renaissance refers to a ‘rebirth’ or ‘reawakening’, which captures the state of mortgage and its growing adoption of technology that supports the creation, execution and delivery of electronic notes within the ecosystem. Leaders across the industry are renewing approaches to processes and embracing digital best practices. The benefits of shifting from paper are immense, with technology focusing on speed, accuracy, data quality, and, of course, the transparency that is pivotal to winning the business and driving down costs for origination channels. Additional benefits include:
- Better Borrower Experience. Digital enhances mortgage transactions for both the borrower and the lender by creating a better overall user experience.
- Operational Efficiency. Digital mortgage technology reduces turnaround time and eliminates missing signatures.
- Accelerated Speed to Capital. eNotes can be managed and delivered to the secondary market far faster than a paper promissory note, expediting the replenishment of capital.
With growing adoption and demand, digital mortgage delivers a competitive advantage and operational efficiencies that cannot be obtained through paper processes.
Mainstream Media Takes Notice
It is encouraging to see interest in the production of eNotes continue to grow as consumers and lenders recognize the value of moving toward a more streamlined, digital process and there is no shortage of coverage in industry trade publications.
Additionally, I was extremely encouraged to see the national news take notice. A few weeks ago, The Washington Post published , “Say Goodbye To All That Paperwork: Digital Mortgages Have Arrived.” In the write-up, Tendayi Kapfidze, chief economist at LendingTree, noted, “There are some lenders that have an almost completely digital process, and some lenders who have a partial digital process. But, ultimately, the industry as whole, from application to underwriting and processing the application, is moving toward a digital structure.”
This recognition by the Post shows just how widespread the demand for digital mortgage really is and how dramatically expectations of the market and key stakeholders have shifted in a short period of time. It also creates more pressure on the industry to be ready for these new expectations.
Digital Mortgage Momentum Continues
It’s great to see the digital mortgage buzz go mainstream, and I firmly believe the announcements from mega industry players was a key catalyst. Last year, we saw stakeholders from across the ecosystem announce digital initiatives, including Wells Fargo Home Lending’s MBA Annual announcement, Ginnie Mae’s 2020, and news about the launch of MERS® eNote Solutions at MBA Tech. With so many prominent organizations taking the digital leap, it’s no surprise publications such as The Washington Post are taking notice.
Additionally, it’s worth noting that the benefits of digital mortgage are not limited to the closing process. Investors play an integral role in maintaining a robust secondary market and are the engines driving today’s digital financial ecosystems. Technology can be used to verify the authenticity of the eNote and provide an online platform through which assets can be properly tracked and transferred. Having “certainty” is critical to funding and overall market confidence, especially for organizations that require the ability to securitize, pool or pledge assets in the secondary market.
Embracing the Digital Renaissance of Mortgage
From originators to investors, and all the parties in between, there’s no escaping mortgage’s digital renaissance. And let’s face it, with the stellar list of benefits, why would you want to stick with paper? Digital mortgage elevates the industry’s focus on capital efficiency and market execution, while also meeting regulatory requirements. If you have questions on how to shift to a digital mortgage solution, we can help. Please contact the eOriginal team today.