Looking toward 2019 with only a slight increase in new purchase originations predicted, but coupled with predicted continuing declines in refis, the importance of reducing costs in loan originations is paramount. As new technologies and integrations continue to be introduced and further solidified, the mortgage industry’s reliance on digital offerings is increasing and opening up new benefits for lenders and the valued borrowers they serve.
With the technology wave continuing to wash over the mortgage industry, lenders are aiming to optimize the mortgage process with a digitally driven borrower experience while also streamlining internal processes for themselves to reduce risk and drive down costs. But how? The key to achieving these goals is to invest in the right tools to not only make each transaction as digital as possible, but also move closer to a fully digital mortgage experience. In other words, it’s time to talk about eClose.
Based on lenders’ continued focus on reducing origination costs and improving the overall mortgage experience for their borrowers, leveraging the latest technology innovations to advance from paper to digital processes has transitioned from an optional investment to an absolute necessity. As the popularity of eClose continues to grow based on the operational benefits of deploying a more efficient and secure process, there is a clear need for integrated digital mortgage solutions that provide true end-to-end eClosing functionality within a single platform.
Having already gained approval by Freddie Mac and Fannie Mae for eClosing, eNote and eVault functionality, Docutech’s Solex eClosing platform is the answer to this growing need. In partnership with Simplifile, the Solex eClosing platform provides lenders with a comprehensive integrated eClosing solution complete with eSigning efficiencies from the initial document generation all the way through post-closing. Additionally, the Solex eVault functionality is also directly integrated with the MERS eRegistry, providing greater efficiency for all eNote management transactions.
In combination with Docutech’s dynamic document generation engine ConformX, Solex eClose enables lenders to automatically generate digital, data-driven documents in full alignment with rules-based intelligence and calculations to precisely meet the specific criteria of each loan. Furthermore, Docutech and Simplifile’s intelligent eEligibility engine analyzes each closing package to be as “e” as it can be, according to state, county and investor variations.
While a more digitally focused eClosing process certainly promotes an enhanced borrower experience through greater access, review and eSign opportunities, there are also significant benefits for lenders on the back end. By leveraging this technology, lenders have the ability to easily transition from paper to hybrid or even full eNote eClose processes, which helps improve loan quality, data accuracy and compliance while also accelerating the loan process as a whole. Not only does this promote greater efficiency from an operational standpoint by eliminating reliance on outdated processes, it also provides significant cost savings and proven ROI for lenders willing to make the jump. How much you ask?
For a lender originating 12,000 mortgages per year with an average loan value of $250,000, transitioning to a Hybrid eClose approach results in $155 in savings per loan, which adds up to a whopping $1.8M in savings annually.
Utilizing the same loan volumes as the previous example, if the lender were to move to a full eNote eClose method, they could increase their cost savings to $224 per loan, resulting in more than $2.6M in annual savings. Beyond the annual cost savings associated with each of these scenarios, lenders will also note an increased fee ROI through Docutech’s Hybrid eClose and Full eNote eClose options.
Based on predicted trends in the mortgage origination market over the next 1-2 years, cost-optimization and efficiency coupled with delivering an experience the millennial buyers demand, , the time to make the transition to a more digitized mortgage process has arrived. By investing in the right tools and determining the best methodology for managing the loan processes moving forward, lenders will not only improve the mortgage experience for their tech-savvy borrowers, but can also capitalize on the significant benefits eClosing can provide them on the back end.