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Brokers can help ensure secure Web access at the closing table and should be prepared to answer the borrowers' loan questions. When these things are accomplished, it's time to sign.
Two of the most-common ways to sign a mortgage document electronically are click-to-sign technology and signing pads. Borrowers can simply tap a button to sign each document, or they can affix holographic representations of their signature by using a signing pad similar to what you might see in a grocery store.
A notary witnesses the documents and uses an electronic authentication credential to notarize the transaction. After the proper signatures have been attached, the electronic loan file is tamper-sealed to prevent any changes.
Through this intuitive borrower experience -- and with the ability to sign and notarize documents electronically -- the closing process can be transformed from a painful, paper-intensive experience to one that is streamlined, simplified and reduced to about 20 minutes.
Electronic workflow also lessens the risk of uncovering any unsigned documents that could delay closing and funding. Moreover, electronic loan files allow post-closing departments to review the file and certify it for delivery to investors quickly and efficiently.
The hybrid closing
Perhaps the most common type of electronic closing today is the hybrid closing. Such closings involve a mix of electronic and paper documents. While most documents can be executed electronically, some documents, such as the recordable documents and, in some cases, the note, are executed on paper. Though the hybrid closing falls short of going completely paperless, closing times are still dramatically reduced.
At this point, some brokers might be wondering how any of this translates to additional market share and revenue. It's simple, really. Electronic mortgages and closings can dramatically improve the borrower experience and even reduce fees that borrowers must pay. In turn, brokers increase the odds that borrowers will become return clients. Moreover, brokers can use the time saved to work on other opportunities and to help borrowers find the best rates and loan programs.
Additionally, electronic mortgages are environmentally friendly -- a marketable feature that could bring in more business.
If this sounds like a lot to take on at once, don't worry. Brokers can build up to an entirely electronic process. Starting with electronic disclosures is probably the simplest introduction to e-mortgages; most document-preparation companies offer easy-to-implement electronic disclosures. To get started with electronic closings, find out if your wholesale lender has a program.
Now is the time to implement new technologies to streamline your processes, to reduce costs and to increase efficiency while also improving your level of customer service and gaining market share.
Jason Nadeau is
senior vice president for Stewart eMortgage Solutions, and Jennifer Dyak is the vice president of sales. Stewart delivers a complete paperless e-mortgage platform from application to investor delivery, allowing all parties to participate in the transaction online. For more information, visit www.eclosingroom.com, call (866) 60-TOOLS (86657) or e-mail eMortgagesolutions@stewart.com.
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