Electronic Mortgages: What's In It For You?
We have become accustomed to digitally signing for our purchases at retail establishments and in 2009
, over 95 million taxpayers filed returns electronically.Has the electronic revolution hit mortgage lending and what"s in it for you?
Adoption of electronic mortgage technology has steadily increased, with over 160,000 electronic notes registered with Mortgage Electronic Registration System since 2005.You just might find yourself closing your next loan electronically and you will be pleased that you did.
The utilization of technology in the mortgage industry brings increased efficiency and undeniable benefits to the borrower: savings in time and money and some peace of mind.
Time
Borrowers, lenders, title and escrow agents can simultaneously access mortgage documents through a secure, encrypted, password protected online repository.With instant and concurrent access to this centralized electronic vault, the delivery and review of documents are no longer dependent upon mail or the physical location of the file, resulting in quicker loan closings and fundings.
Since the majority of closing documents can be digitally signed online prior to closing, only the documents which need to be witnessed by a notary, such as the deed, will be signed at closing.This dramatically reduces closing time to about 20 minutes.
Money
The elimination of paper through the electronic delivery, signing, and storage of loan documents means no more paper, ink, envelopes, mail or courier costs.This reduction in loan origination, closing, and secondary market delivery costs could potentially save both the lender and the borrower hundreds of dollars.
Data and signature errors and fraud are eliminated due to the inherent accuracy, integrity, and security of emortgages; while the built in audit trail features of the evault allow for compliance and regulatory checks to be performed effortlessly.This reduction in lender risk and in post closing quality control work results in tremendous savings for the lender, and these savings are passed onto the borrower.
Technological efficiencies of electronic mortgages results in quicker fundings and instant delivery to secondary market investors.This reduces a lenders warehouse line costs and again these savings are passed along to the borrower.
Peace of mind
When most think of mortgage closings, they conjure up a stack of over 100 pages with terms, conditions, and figures that they are reviewing for the first time and are then asked to sign these documents.This could be an overwhelming experience considering this is likely the largest purchase of one"s life.Electronic mortgages changes all of that.
eMortgage technology provides the borrowers the ability to review online all of the loan documents prior to closing, empowering the borrower with knowledge and thus eliminating any surprises in the final figures of the HUD-1 closing statement or in the terms of the loan.
Legal and industry standards for security demand that all data, document, and signature activity be encrypted, time stamped, and recorded for auditing purposes.Additionally, cryptographic tamperseals ensure documents remain unalterable once signed.Borrowers can rest assured that electronic mortgage documents are more secure than their paper counterparts.
Electronic mortgage technology is transforming the lending industry as it transitions to a paperless environment.The real impact of the emortgage initiative is felt by the borrower, those who will now have a little more money, time, and peace of mind.
by:Carol Ventura
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