In the previous posts in this series, we’ve talked about why lenders shouldn’t be in the document fulfillment business and why digital lending doesn’t mean paperless lending. In this post, we want to share news of a technology that can turn any lender into a fulfillment superstar.
There is no question that the current pandemic has significantly reshaped every aspect of our daily lives. When it comes to real estate closings, there is also no question that the need for contactless, virtual mortgage closings is real and urgent. Before COVID-19, eClosings were growing at a modest pace as the industry collaborated on solutions to facilitate broader adoption, including acceptance of Remote Online Notarization (RON). Then everyone was told to stay home, and industry collaboration ignited with a new and passionate purpose.
As we enter the summer months, lenders are facing a complicated lending and regulatory environment. Despite states beginning to reopen, many borrowers and lending staff are choosing to maintain social distancing. As a result, more states are permitting Remote Online Notarizations (RON) in the absence of Federal guidelines.
Our compliance team is hard at work monitoring any developments at the federal and state level to provide you with the information and tools necessary to continue operations amid COVID-19. We are seeing updates at both the state and national level to accommodate difficulties in this time and are working continuously to ensure our guidance reflects the latest news.
March was a tumultuous month for all of us, as everyone across industries and even continents attempted to establish a new normal amid the COVID-19 outbreak.
Proponents of Remote Online Notarization (RON) have been touting its benefits, both to borrowers and the industry, for some time now. Now that the COVID-19 threat has led to social distancing requirements, there is increasing demand for a national standard to support RON to enable business continuity for lenders and financial institutions.
Have you ever stopped to consider how gradual major change truly is?
Sometimes, we don’t see how drastically something like the digital mortgage has evolved when we’re deep in the weeds every day. While it may seem that we have been talking about the digital mortgage evolution for a decade, when we take a step back, we see just how far the industry has come in its adoption of digital lending processes.
February brought the first major regulatory changes with Fannie Mae and Freddie Mac rolling out new the ARM regulations alluded to late last year. The GSEs announced plans for the gradual elimination (and replacement) of their ARM programs, which use LIBOR as the index for setting the adjustable interest rate. We have been working quickly to update documents but expect to see more changes and will alert you as more information becomes available.
In order to successfully introduce and deploy new technology, proactive change management is critical. As eClose adoption gains momentum, lenders who recognize the importance of laying the proper foundation early are experiencing positive adoption of this digital closing process. In collaboration with our partners at Simplifile, we have created a comprehensive guide for lenders interested in implementing eClose. Here are four key steps that every lender should consider. For a more comprehensive guide to implementing an eClose strategy, download, “E Closing: Lender Best Practices.”
