On December 6, 2017 the Consumer Financial Protection Bureau (CFPB) published an updated version of the “TILA-RESPA Integrated Disclosure Guide to the Loan Estimate and Closing Disclosure forms”. The new guide included updates and amendments, which the CFPB hoped would provide illustrations for how the final rule is issued in July 2017 should be implemented.
Historically, financial services organizations tend to invest in new technologies at a more conservative rate than firms in other industries. There are good reasons for that, because mortgage banking, like all financial services, has risk mitigation at its core. Adopting every new technology that comes down the pike is not a good way to manage risk in the enterprise. Depending on the size, infrastructure and resources of a particular lender, the decision to adopt new technology solutions can vary and impact the overall perception of financial services industry technology advancement.
The rise of mobile was one of the hottest trends in 2017 and it has carried over into every transaction the consumer engages in. With mobile now making up two-thirds of a consumer’s digital media time, the chances of interacting with a borrower through their mobile device is much more likely than through their desktop computer.
Recent research from the Consumer Financial Protection Bureau (CFPB) shows that many borrowers regard closing on a home as a stressful and intimidating experience.
Denver, Colo. was invaded by leaders from the mortgage space, all eager to learn more about what’s to come in 2018 and get a firsthand look at the latest technology innovations aimed at simplifying and optimizing processes and improving the borrower experience. Along with a trade show floor full of new product and service offerings, MBA Annual 2017 offered attendees the opportunity to sit in on an array of sessions tackling key topics such as HMDA, digital mortgage and regulatory changes not to mention a motivating session on leadership led by five-time NFL MVP Peyton Manning.
Because mortgage transactions have significantly larger loan balances than other types of transactions, they are very attractive to fraudsters who are seeking an illicit payday. There are many schemes fraudsters use to steal money from mortgage lenders and their investors. These range from valuation-based schemes, where criminals attempt to mislead the institution as to the exact value of the property, to setting up straw borrowers with fake credit reports.
In the lending process, the customer’s experience is largely driven by the many documents a borrower must fill out, review and sign. Today’s consumers expect and demand a loan process that is quick, easy to understand and accessible in any format – online, mobile or hard paper.
The industry has been consistently moving closer to digital becoming the standard format for originating, closing and selling mortgages. However, the actual eClose has been one aspect of the digital mortgage transaction that has complicated the progress towards paperless becoming the industry norm. But integrated eClosing solutions are now becoming a reality to benefit the borrower, lender, title and settlement.
When you consider the eMortgage process: taking a paper file filled with mortgage lending documents that was executed according to complex rules and converting that into an electronic computer file that is just as legally binding as the paper, it’s a little easier to understand why it has taken nearly two decades of work to get the industry as close to that idea as we are today.
